FG Launches YouthCred for Entrepreneurs, Offers Up to ₦2m Loans to Young Business Owners

The Federal Government has launched YouthCred for Entrepreneurs, a new credit initiative designed to provide affordable financing to young Nigerian business owners seeking to expand their enterprises.

The programme, implemented by the Nigerian Consumer Credit Corporation (CREDICORP) under the Federal Ministry of Finance, aims to improve access to formal credit for entrepreneurs who often struggle to secure financing through conventional lending channels. The pilot lending partner for the initiative is Wema Bank, with additional financial institutions expected to join as the programme expands nationwide.

YouthCred for Entrepreneurs targets Nigerians aged 18 to 39 who own or operate small businesses, including informal enterprises that may not yet be formally registered. Unlike traditional business loans that often require collateral, audited financial statements or company registration documents, the scheme assesses applicants based on factors such as business cash flow, affordability and repayment capacity.

Eligible applicants can access loans ranging from ₦200,000 to ₦2 million, with repayment periods of up to 12 months. The government says the initiative is intended to provide working capital, support business expansion and help young entrepreneurs build a verifiable credit history for future access to larger financing opportunities.

As part of the application process, prospective beneficiaries are required to complete a digital financial literacy and credit education programme before becoming eligible for financing. According to CREDICORP, the “learn-before-you-borrow” approach is designed to promote responsible borrowing and improve loan repayment performance.

The application portal is now open, and interested entrepreneurs can submit their applications through the official YouthCred platform. Applicants will undergo an eligibility assessment before successful applications are processed through participating financial institutions.

The launch marks the third phase of the YouthCred initiative, following earlier programmes introduced for National Youth Service Corps (NYSC) members and employed young Nigerians. CREDICORP said the broader programme is part of efforts to deepen financial inclusion, encourage responsible credit use and support the growth of small businesses across the country.