CBN seeks loan applications under its TIES
By Jeph Ajobaju, Chief Copy Editor
Six pioneer beneficiaries of the Tertiary Institutions Entrepreneurship Scheme (TIES) created by the Central Bank of Nigeria (CBN) have been given N5 million each to carry out business enterprises of their dream.
TIES provides undergraduates and graduates of polytechnics and universities with a platform to access loans to fund their innovative entrepreneurial and tech ideas, to shift them away from white collar jobs and to entrepreneurship and job creation.
The CBN has established a Body of Experts of 11 members chaired by Sterling Bank Managing Director Abubakar Suleman to oversee the scheme.
CBN Governor Godwin Emefiele explained that only the academic certificates of applicants will be required as collaterals and the certificates will be returned to them once the loans are repaid.
Below are other explainers put together by the CBN published by Nairametrics:
Eligibility for TIES loan
Only those with a polytechnic or university degree are considered. Priority is given to innovative entrepreneurial activities with high potential for export, job creation, and transformational impact.
The documents to confirm eligibility are
- First degree certificate (BSc/HND or equivalent)
- National Youth Service Certificate (NYSC) discharge or exemption certificate
- Certificate of participation issued by a polytechnic and university evidencing entrepreneurship training
- Not more than seven years post-NYSC
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How undergraduates can apply
Undergraduates are to apply for grants through the Development Component of TIES which will be distributed in form of awards to polytechnics and universities at a national biennial entrepreneurship competition.
The competition seeks to increase undergraduates’ awareness and visibility of high-impact entrepreneurial/tech concepts, foster entrepreneurial talent hunts in polytechnics and universities, and encourage commercially viable and transformative tech.
Polytechnics and universities are to apply to participate in the biennial entrepreneurship competition on an online portal (https://cbnties.com.ng), outlining brief details of the project, potential impact, and evidence of project originality.
How it works
The CBN will choose a Body of Experts (BoE) from the corporate and governmental sectors to assess entrepreneurial and technology innovations submitted for the biennial regional and national entrepreneurship competitions.
The BoE will review the applications through engagements that feature undergraduates competing by pitching entrepreneurial and technology innovations at regional levels.
The finalists will progress to the national event for final consideration and ranking by the BoE.
The programmes will be broadcast on social media and national television stations for four weeks to showcase the benefits of entrepreneurship and influence attitudes and perceptions about it.
On the recommendation of the BoE, the grant will be awarded to the top five entrepreneurial and tech innovations at the national level; disbursed in 55:45 ratio tranches to an account opened for it by polytechnics and universities, subject to approved milestones.
How graduates can apply
Graduates of polytechnics and universities are eligible to participate in the Term Loan Component of TIES.
The Term Loan Component consists of two tiers for individuals and companies.
Tier 1 – Individual projects
The maximum loan amount is N5 million, with a five-year repayment period. The interest rate is 5 per cent per year, but will rise to 9 per cent on March 1, 2022.
The loan has a maximum 12-month moratorium on principal and interest.
Documentation collateral requirements:
The applicant is to apply as a business entity registered with the Corporate Affairs Commission (CAC) and the certified true copies (CTC) of the forms should be submitted, plus
- Bank Verification Number (BVN)
- First-degree certificate (BSc/HND or equivalent)
- NYSC discharge or exemption certificate
- Certificate of participation issued by a polytechnic and university evidencing entrepreneurship training.
Collateral requirements:
Duly signed Global Standing Instruction (GSI).
Third-party guarantee from a senior federal/state civil or public servant (not below level 10 and not having less than five years to retire from service), clergy of note and reputation or recognised traditional ruler.
Tier 2 – Partnership/Company projects
The loan limit is N25 million, with a five-year term. The interest rate is 5 per cent per year but will rise to 9 per cent on March 1, 2022.
The loan has a maximum 12-month principal and interest moratorium.
Documentation collateral requirements:
The partnership or company is to apply as a registered business with the CAC and certified true copies (CTC) of forms should be submitted.
Each member of the partnership or company shall also submit:
- Bank Verification Number (BVN)
- First-degree certificate (BSc/HND or equivalent)
- NYSC discharge or exemption certificate
- Certificate of participation issued by polytechnic and university evidencing entrepreneurship training
Collateral requirements:
- Duly signed GSI by a member of the partnership or company
- Third-party guarantee from a senior federal/state civil or public servant (not below level 10 and not having less than five years to retire from service), clergy of note and reputation or recognised traditional ruler.
Award of grants
Five 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
- Fifth place – N50.0 million
The grants are in the following areas:
Agribusiness
- Production
- Processing
- Storage
- Logistics
Information technology
- Application/software development
- Business process outsourcing
- Robotics
- Data management
Creative industry
- Entertainment
- Artwork
- Publishing
- Culinary/event management
- Fashion
- Photography
- Beauty/cosmetics
Science and technology
- Medical innovation
- Robotics
- Ticketing systems
- Traffic systems
- Renewable energy
- Waste management
Any other activity
- As may be determined by the CBN from time to time
The scheme shall be operated for 10 years in the first instance (not exceeding 31st December 2031) depending on the complexity of the project.