*To fund 25,000 graduate-led start-ups annually
The Central Bank of Nigeria (CBN) has unveiled a N500 million entrepreneurship competition for universities and polytechnics with a grant of N500 million for the top five winning schools.
According to the CBN, “Five (5) top Nigerian polytechnics and universities with the best entrepreneurial pitches/ideas shall be awarded as follows: First place – N150.0 million; Second place – N120.0 million; Third place – N100.0 million; Fourth place – N80.0 million; and Fifth place – N50.0 million.”
The competition was announced in the guidelines for the scheme, which is known as Tertiary Institutions Entrepreneurship Scheme (Ties).
The CBN stated that the scheme also involves N500 million Developmental grant to be disbursed in the form of grants to Nigerian polytechnics and universities in a national biennial entrepreneurship competition. According to the guidelines, “The competition is aimed at raising awareness and visibility of high-impact entrepreneurial/technological ideas among undergraduates, promote entrepreneurial talent hunts in Nigerian polytechnics and universities, as well as encourage innovations that are commercially viable and with transformational impact.“The Developmental Component shall also be utilized for the general development of the MSME segment in the following areas: Finance the development of the award-winning innovative entrepreneurial/technological ideas; Research and development of high-impact technological innovations and projects; and Support the development of financial infrastructure to facilitate the entrepreneurship in Nigerian polytechnics and universities.
25,000 graduate start-ups to get loans at 5%
The scheme also involves funding of 25,000 graduate enterprenuers (gradpreneur) led start-ups and creation of 75,000 jobs annually, while 50 per cent of businesses to be funded under the initiative will be female-gradpreneurs.
The funding is to be done through two tiers of loans both with five per cent interest rate, five years tenor and moratorium of 12 months on principal and interest.
The loan limit under Tier-1 which focuses on individual projects is N5 million while the documentary requirements include: Corporate Affairs Commission (CAC) registration and certified true copies (CTC) of relevant forms submitted; Bank Verification Number (BVN); First degree certificate (BSc/HND or its equivalent); ▪ National Youth Service Certificate (NYSC) discharge or exemption certificate; and Certificate of Participation issued by polytechnics and universities evidencing entrepreneurship training.
The loan limit under Tier-2 which focuses on company or partnership projects is N25 million while the documentary requirements include: Corporate Affairs Commission (CAC) registration and certified true copies (CTC) of relevant forms submitted. Each member of the partnership or company shall also submit: Bank Verification Number (BVN); First degree certificate (BSc/HND or its equivalent); National Youth Service Certificate (NYSC) discharge or exemption certificate; and Certificate of Participation issued by polytechnics and universities evidencing entrepreneurship training
