The Central Bank of Nigeria (CBN) has issued guidelines for the implementation of its Tertiary Institutions Entrepreneurship Scheme (TIES) to harness the potential of graduate entrepreneurs.
The apex bank made this known on Wednesday in a document released and signed by Yusuf Yila Philip, CBN’s director, development finance.
The CBN said the objective of the TIES is to enhance access to finance by undergraduates and graduates of polytechnics and universities in Nigeria with innovative entrepreneurial and technological ideas.
The scheme is targeted at financing 25,000 gradpreneurs annually, which will, in turn, create an additional 75,000 sustainable jobs annually, according to the bank.
The CBN said that start-ups and existing businesses in areas such as agribusiness, information technology, creative industry, as well as science and technology are eligible for financing under the scheme.
It further noted that priority would be given to innovative entrepreneurial activities with high potentials for export, job creation and transformational impact.
The apex bank explained that the scheme will be implemented through three components namely term loan, equity investment and developmental components.
Under the term loan component, an individual project can access a maximum loan of N5 million with a five-year tenor and interest rate of five percent per annum (nine percent effective from March 1, 2022, or as may be prescribed by the CBN)