Six graduates pioneer beneficiaries of TIES
By Jeph Ajobaju, Chief Copy Editor
Six graduates and undergraduates have received N5 million each from the Central Bank of Nigeria (CBN) as pioneer beneficiaries of the Tertiary Institutions Entrepreneurship Scheme (TIES) to enable them create jobs and grow the economy.
CBN Governor Godwin Emefiele advised the loan recipients to put the money to good use in their enterprises in order to spur growth and job creation.
Their academic certificates are held as collateral and will be returned to them once the loans are paid off, he explained.
TIES aims to steer youths away from white collar occupations and towards entrepreneurship, and make them job creators rather than job seekers, as is the case in several other countries.
The News Agency of Nigeria (NAN) reports that the six beneficiaries are:
- Aisha Sulaiman, graduate of Bayero University, Kano.
- Chukwudi Ukpabi student at Federal Polytechnic, Ebonyi.
- Zainab Muhammed, graduate of Federal Polytechnic, Bida.
- Nura Abdullahi student at Kano State Polytechnic.
- Simeon Ojopane student at Kogi State University.
- Adebowale Olaoye, graduate of the University of Lagos.
“What we are doing today is something that is taken for granted in other climes. At the CBN, we are concerned about the level of unemployment within the youth population and we are taking steps to address it,’’ Emefiele said.
The CBN has established a Body of Experts of 11 members chaired by Sterling Bank Managing Director Abubakar Suleman to oversee the scheme.
Secretary to the Government of the Federation (SGF) Boss Mustapha praised the CBN for TIES, which he said is one of the many efforts of the CBN to empower young Nigerians.
He urged tertiary institutions to choose recipients on merit.
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TIES backstory
Emefiele on November 25 launched TIES in Abuja which the CBN designed to grant financial support to undergraduates and graduates with entrepreneurial skills in order to address youth unemployment and underemployment.
“With about 600,000 students graduating yearly from Nigerian tertiary institutions, and without the commensurate employment opportunities in both the public and private sectors, it has become imperative that government, at all levels, puts in place policy measures to support entrepreneurial development among our youth.
“Such measures would create an enabling business ecosystem that supports innovation and enables the youth to unleash their entrepreneurial potential, by redirecting their focus from seeking white-collar jobs to a culture of entrepreneurship development.
“The ecosystem should provide support in re-orientating, training, and providing a financing model apt to the peculiarity of the sector within which the businesses operate,” he said, per Nairametrics reporting.
TIES was established in collaboration with polytechnics and universities to unlock the potential of graduate entrepreneurs by shifting their focus away from white collar occupations, towards entrepreneurship for economic development and job creation.
Three verticals of TIES
The CBN listed the three verticals of TIES as
i. Term Loan Component
Provides direct credit opportunities to graduates of polytechnics and universities of not more than seven years post-graduation.
A successful applicant is eligible for a maximum N5 million for an individual, sole-proprietorship or small company; and a maximum N25 million for a partnership or company.
The tenor is a maximum five years, with a one-year moratorium, and at 5 per cent interest per annum, raised to 9 per cent from March 2022.
The pilot phase is implemented through the Bank of Industry (BOI) with a portal for application and processing.
ii. Equity Investment Component
Supports startups, businesses requiring expansion, and ailing businesses seeking resuscitation. It is implemented under the AGSMEIS Equity Window.
The investment limit is subject to the limit prescribed by the AGSMEIS Guidelines and the investment period is not more than 10 years.
iii. Developmental Grant Component
Raises awareness and visibility of entrepreneurship among undergraduates in tertiary institutions.
Polytechnics and universities compete in a national biennial entrepreneurship competition where undergraduates are presented by the tertiary institutions to pitch innovative entrepreneurial or technological ideas with transformational potential.
Three top institutions at regional levels proceed to the national level, where the top five are awarded grants ranging from N120 million to N250 million.
Emefiele said with TIES and similar schemes Nigerian higher institutions will help provide solutions to challenges in their immediate environment and beyond and also compete favourably with their counterparts around the world.
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