CBN gets TIES off in potentially game changing youth entrepreneurship scheme 

Governor Godwin Emefiele of the Central Bank of Nigeria (CBN) officially launched the Tertiary Institutions Entrepreneurship Scheme (TIES), which the apex bank approved its implementation recently.

Emefiele, at the CBN headquarters in Abuja on Thursday, also inaugurated the Body of Experts (BoE) for the scheme, aimed at further promoting entrepreneurship development among Nigerian youth.

The TIES is designed to create a paradigm shift among undergraduates and graduates of tertiary institutions in Nigeria, from white-collar jobs towards entrepreneurship development with the CBN joining hands with the Bank of Industry for the pilot implementation phase.

The development component of the scheme underscores the critical roles youth play in building new blocks for economic growth, particularly as the country’s national growth was highly dependent on strong and competitive businesses.

At the launch, Emefiele said, “the scheme was developed in partnership with Nigerian polytechnics and universities, to harness the potential of graduate entrepreneurs by creating a paradigm shift from the pursuit of white-collar jobs to a culture of entrepreneurship for economic development and job creation.

“Bridging their financing gaps and enhancing access to low-cost credit to drive the development of business is a task that can only be addressed by an innovative financing model that correlates with the complexity and dynamics of these small businesses,” he posited while also stating that the TIES was designed to address three verticals – the Term Loan component, the Equity Investment component and the Development Grant Component.

Providing further explanation on the scheme, the apex bank stated that the term loan component provides direct credit opportunities to graduates of Nigerian polytechnics and universities of not more than seven years post-graduation; also, the equity investment component is designed to support start-ups, existing businesses requiring expansion, and ailing businesses seeking resuscitation; and the developmental grant component is aimed at raising awareness and visibility of entrepreneurship among undergraduates of Nigerian tertiary institutions. Under this developmental grant, polytechnics and universities in Nigeria are expected to compete in a national biennial entrepreneurship competition where undergraduates are presented by the tertiary institutions to pitch.

Calling to mind the glory days in the country’s educational system, Governor Emefiele urged all stakeholders to join the campaign to restore glory to Nigeria’s educational sector reminiscent of when tertiary institutions “churned out graduates, not only ready and able to provide real solutions to the various challenges emanating from their immediate environment and even beyond, but who could compete favourably with their counterparts around the world.”

Emefiele assured that the apex bank remains resolute in its commitment to supporting entrepreneurship by offering youth entrepreneurs access to much-needed finance, which he identified as one of the major limiting factors to entrepreneurship development in Nigeria.  Similarly, he declared the unrelenting commitment of the CBN to supporting the country’s educational sector in all ramifications, noting that wholesome development shall remain a mirage without a robust educational sector.

Highpoints at the launch included presentation of symbolic cheques to the five maiden beneficiaries of the TIES, as well as the inauguration of the Body of Experts (BoE) to be chaired by Abubakar Suleiman, the chief executive officer of Sterling Bank. The BoE comprises professionals drawn from the academia, professional bodies, and industry, and were consulted to evaluate and rank entrepreneurial presentations made by tertiary institutions under the Developmental (Grant) Component. It is expected to recommend projects with high potential and transformational impact for grant awards.

Other members of the BoE include Patrick Iyamabo group chief financial officer, First Bank Limited; Adamu Lawani, general manager, Zenith Bank Plc, and Ngover Ihyembe-Nwankwo, general manager, coverage, Rand Merchant Bank Nigeria.

Also on the board are Ashafa Ladan, the acting director, skills development and entrepreneurship, National Universities Commission (NUC); Abbati D. K. Muhammad, director, vocational, technical and skills development, National Board for Technical Education (NBTE); and Friday Okpara, director, partnership and coordination, Small and Medium Enterprises Development Agency (SMEDAN).

Other members on the list are Bolanle Adekoya, partner at PwC Nigeria; Tope Fasua, chief executive officer, Global Analytics Consulting Limited; Folusho Oyinlola, director, coordination, National Defence College; and Temitope Akin-Fadeyi, associate head, strategy and policy, development finance department, Central Bank of Nigeria (CBN), who will act as Secretary.

Chukwuemeka Nwajuiba, minister of state for education, commenting, expressed the full support of the Ministry of Education for the TIES and stressed the need for a major paradigm shift from the pursuit of white-collar jobs to entrepreneurship.

Boss Mustapha, secretary to the government of the federation (SGF), urged tertiary institutions to ensure the use of merit for the selection of beneficiaries of the scheme.