The ongoing CBN ₦500k Grants for Graduates, an initiative of Nigeria’s apex bank, attempts to curb unemployment for graduates.
It is not a standalone gesture since it rides on a prior partnership between the Tertiary institutions Entrepreneurial Scheme (TIES) and polytechnics and universities in the country.
The object in the offing is to prepare competent hands in various academic areas that cut across practical entrepreneurial skills. Trainees are aptly regarded as gradpreneurs.
In the long run, the grants will cement previous attempts by the government at managing the youthful labor of young adult university graduates. Also, it is accommodative of undergraduate students.
Do you wish to learn more about this grant? Of course, you need the information. The current financial terrain is not entirely encouraging for youths.
Hence the string of unemployment alleviation schemes and affordable loans for SMEs from the CBN (Central Bank of Nigeria). Nigerian youths can profit a lot from this CBN ₦500k introduction.
Read on below for details.
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CBN ₦500k Grants for Graduates: What to Expect
The trend among school leavers (even undergraduates) is to pursue careers in sedentary fields, colloquially known as white-collar jobs, after school. The CBN ₦500k Grants for Graduates will reverse the movement, untethering thousands of post-school job seekers from looking for “office work”.
Instead of seeking opportunities in the traditional corporate settings in the socio-economic landscape of Nigeria, youths can become job creators who pioneer new paths to financial freedom.
How will the CBN pull it off?
There is no reason to expect the CBN ₦500k Grants to be distributed haphazardly among so many universities in the country. The best go is for institutions, polytechnics, and universities to fill in qualifications.
Each university will get a placement if its curriculum endorses the required entrepreneurship courses, programs, sessions, etc.
Top ranking sores from this draft will get CBN ₦500k Grants for Graduates to the tune of one hundred and fifty million naira (₦150m), first place; one hundred and twenty million naira (₦120m), second place; one hundred million naira (₦100m), third place; eighty million naira (₦80m), fourth place; and fifty million naira (₦50m), for the fifth place.
How will the CBN access schools in the aspect of eligibility and competence?
According to a section of the grant introduction by the CBN, evaluators curated from the various private and public schools involved will constitute a Body of Experts (BoF) that holds a biennial competition, which proceeds from the regional runs to a shortlisted national final.
The BoF will select only the submissions that best foster ideas, techniques, and procedures for positive economic growth. Of these shortlisted participants, only the overall best entry gets the highest prize of ₦150m.
Timeline of the CBN ₦500k Grants
Currently, activities revolve around setting up logistics for the introduction of the facilitators (which includes monitors, evaluators, and BoFs) for the initiative.
Meanwhile, the entire process is under the purview of the CBN and PFI, both handling all unfolding operations concerning the CBN ₦500k Grants for Graduates.
Briefly, the sketch involves organizing zonal sessions for draws under the BoF, then proceeding to the national level. In this regard, Nigeria’s apex bank expects the project to conclude yearly activities before the 1st of January. Regardless, the extent of subsequent operations in the year may push this time limit.
Moreover, there is ample provision for grant repayment, including schemas for repaying applicable interests and the principal. You can access the complete details on the official website.
So, who is qualified to participate in this grant? See the following section for details.
CBN ₦500k Grants for Graduates Eligibility Criteria, Qualification for Graduates/Undergraduates
Although this grant operates on an equitable, inclusive scheme for Nigerian undergraduates, it requires all prospective participants to meet several criteria.
We outline the qualifying prelims below. You can consult the CBN ₦500k Grants for Graduates webpage for information about repayment (including interests and principals) specifications.
Here are the applicable criteria.
- Bank Verification Number
- Guarantee (from specified institution or company on the TIES site)
- Bachelor of Science (BSc) or any other valid first-degree certificate (preferably HND)
- National Youth Service Certificate (NYSC) showing candidate’s discharge or exemption from the mandatory one year program
- Also, submitted entries must not include applications from candidates who have concluded NYSC for over seven years.
- Corresponding Certificate of Participation from Polys and universities certifying candidate’s acquisition of necessary entrepreneurship skills
Loan Components under the TIES, Where to Apply
Provided you meet the requisites, you can access the following loans from the TIES, a crucial part of the ongoing CBN project.
Loans for qualified Nigerian Universities and Polytechnics graduates
It typically involves three parts, namely:
- Sole Proprietorship (which forms Tier 1) and
- Small Company Enterprise.
Also, all proprietorships and enterprises must be registered as limited liability businesses under the appropriate regulatory body, CAMA. Also, it gives ₦25 million for five (5) years, repayable with 5% (9% from March 2022) interest on monthly or quarterly installments.
This part of the loan only involves the grants.
Then there is the third one below.
Equity Investment Component
See the clip from the TIES for a description.