How CBN’s institution entrepreneurship scheme can enhance food sufficiency

The move by the Central Bank of Nigeria (CBN) to empower graduates of Nigerian polytechnics and universities with entrepreneurial skills through Tertiary Institutions Entrepreneurship Scheme (TIES) will reduce unemployment and boost food production, stakeholders in the sector have observed. The apex bank recently introduced TIES to boost economic growth and reduce unemployment among graduates. The […]

The move by the Central Bank of Nigeria (CBN) to empower graduates of Nigerian polytechnics and universities with entrepreneurial skills through Tertiary Institutions Entrepreneurship Scheme (TIES) will reduce unemployment and boost food production, stakeholders in the sector have observed.

The apex bank recently introduced TIES to boost economic growth and reduce unemployment among graduates.

The bank said the scheme would create a paradigm shift among undergraduates and graduates from the pursuit of white-collar jobs to a culture of entrepreneurship geared towards job creation, economic growth and sustainable development.

It is aimed at exploring the potentials of the Nigeria graduate entrepreneurs (gradpreneurs) by providing re-orientation, training and an innovative financing model that would enhance the entrepreneurial ecosystem with transformational impact on the economy.

According to the statement from the bank, the scheme will aim at producing 25,000 gradpreneur-led innovative start-ups and businesses yearly; create 75,000 jobs yearly and no fewer than 50 per cent of female-gradpreneurs would be financed as a percentage of total projects.

Eligible businesses to be covered under the scheme include innovative start-ups and budding businesses owned by graduates of Nigerian polytechnics and universities in the areas of agribusiness (production, processing, storage and logistics); information technology (application/software development, business process outsourcing, robotics, data management); creative industry (entertainment, artwork, publishing, culinary/event management, fashion, photography, beauty/cosmetics) and science and technology (medical innovation, robotics and ticketing, among others).

The statement added that the scheme would be implemented through three components of term loans; equity investment and developmental component.

“This shall be in the form of soft business loans. Only graduates of Nigerian polytechnics and universities that have undergone entrepreneurship training shall be eligible to participate under this component.

“Interest and principal repayment shall be made monthly on installment basis by the obligor to the PFIs according to the approved repayment schedule,” the statement further said.

According to the bank, the developmental component would be disbursed in the form of grants, and the grant shall be accessible by Nigerian polytechnics and universities through a biennial national entrepreneurship competition aimed at raising awareness and visibility of high-impact start-up ideas among undergraduates, promote entrepreneurial talent hunts in Nigerian polytechnics and universities and encourage innovations that are commercially viable and with transformational impact.

The statement said that the top five Nigerian institutions with the best entrepreneurial ideas would be awarded first place, N250m; second place, N150m; third place, N100m; fourth place, N75m and fifth place, N50m” for onward delivery to graduates and undergraduates with winning proposals.

The bank said investment period would be for 10 years (not exceeding December 31, 2031).

The third unit of the scheme, the bank said, is one in which graduates of Nigerian polytechnics and universities shall be eligible to participate under the term loan component, in which an applicant shall apply as a business entity registered with the CAC, with a BVN, first degree certificate or its equivalent, not more than seven years post-NYSC, with a NYSC certificate, certificate of participation issued by polytechnics and universities with a tenor of five years and interest rate of five per cent.

Participating Financial Institutions (PFIs) under this scheme would be deposit money banks (DMBs) and other financial institutions as may be approved by the CBN.

Reacting to the scheme, a retired agriculturist, Malam Ibrahim Dogo, said if the scheme is properly handled with sincerity, it is capable of attracting youths’ attention to agriculture, which would in turn boost food production.

‘’The problem is proper implementation, how to select beneficiaries with genuine intents and for the scheme not to be hijacked. If all these are checked, then we can be talking about its success,’’ he said.

Mr. Joshua Enitan, a retired banker, who is now a big-time farmer, hailed the moved but called for close monitoring in terms of beneficiaries’ selection, fund disbursement, among others, so that it will not end up in wrong hands.