NYIF: FMYSD clears doubt on Disbursements, says only 41,000 youths can benefit from N12.5 billion

The Federal Ministry of Youth and Sports Development (FMYSD) has, Tuesday, reacted to the querries of Nigerians on why they were granted approval of loan amounts below their anticipation and contrary to the content of their loan application.

Clarifying the decision to reduce the amount approved for each of the beneficiaries of the Nigerian Youth Investment Fund (NYIF), the ministry's Director of Press, Muhammad Manga, through a press statement tittled "@NigeriaFMYS CLEARS DOUBT ON NYIF DISBURSEMENT" stated in several tweets as follows:

"@NigeriaFMYS has been following with interest the reaction of some beneficiaries of the Nigeria Youth Investment Fund #NYIF, particularly those expressing disappointment at the N300,000.00 cap on disbursement under the first tranche of N12.5 billion.

"Firstly, the framework specified N250,000 as the maximum for individual and eligible businesses that are critical can access up to N3m subject to meeting key criteria set in the guideline and conditions.

"Considering the number of applications received, there was need to ensure spread and enable more beneficiaries enjoy the facility.

"It is pertinent to state that the Ministry received over three million applications for the N12.5 billion that is available; and at the current cap of N300,000.00 per beneficiary, only about 41,000 beneficiaries can be covered.

"The Ministry is desirous of reaching as many beneficiaries as possible hence the decision to limit loans to the current amount.

"It may also interest you to know that some of the applicants have also benefitted much from existing intervention, which has supported them and are impacting the economy.

"It is important we start and increase gradually, considering that there are lots of first-time borrowers as well and that the programme double edge, which includes capacity building, mentoring, monitoring and support will sustain the beneficiaries and guarantee expected outcome." https://mobile.twitter.com/FMYSD_NYIF

Related: NYIF: Approval/Pre-qualification/Training Invitation/Training on going, FMYSD assures, explains reduction in loan amount

The Ministry reaffirming it's commitment to profitably empower thousands of Nigerian Youths through the Nigeria Youth Investment Fund re-emphasised that the NYIF is not a grant, but a loan targeted at supporting the youth to start small businesses or to inject funds into existing small businesses.

Answering questions on the date for the disbursement of the approved loans, the ministry stated "Loan approval is in batches. Successful applicants will be contacted in batches for training by the Ministry after which Loan disbursement will commence at the appropriate time."