The Central Bank of Nigeria (CBN) has introduced the Tertiary Institutions Entrepreneurship Scheme (TIES), which provides undergraduates and graduates with a platform to access loans.
The TIES’ underlying aim is to provide access to capital for Nigerian undergraduates and graduates with innovative entrepreneurial and technological ideas from polytechnics and universities.
TIES intends to shift undergraduates and graduates away from white-collar job pursuits and towards a culture of entrepreneurship development for economic development and job creation.
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Only those with a Nigerian polytechnic or university degree will be considered. Also, Priority will be given to innovative entrepreneurial activities with high potentials for export, job creation and transformational impact.
The documents listed below will confirm your eligibility.
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Undergraduates would be able to apply for grants through the scheme’s development component.
In a national biennial entrepreneurship competition, the Developmental Component would be distributed in the form of awards to Nigerian polytechnics and universities.
The competition aims to increase undergraduates’ awareness and visibility of high-impact entrepreneurial/technological concepts, foster entrepreneurial talent hunts in Nigerian polytechnics and universities, and encourage commercially viable and transformative technologies.
Interested Nigerian polytechnics and universities shall apply to participate in the national biennial entrepreneurship competition on a dedicated online portal (https://cbnties.com.ng), outlining brief details of the project, potential impact and evidence of originality of project;
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For the biennial regional and national entrepreneurship competitions, the CBN would choose a Body of Experts (BoE) from the corporate and governmental sectors to assess entrepreneurial and technology innovations submitted by Nigerians.
The BoE will review the submitted applications through engagements that feature undergraduates competing by pitching entrepreneurial and technology innovations at regional levels, with finalists progressing to the national event for final consideration and ranking by the BoE.
The showcasing programs will be shown on channels such as social media and national television stations for four (4) weeks to assist showcase the benefits of entrepreneurship and influence attitudes and social perceptions about it.
On the recommendation of the BoE, the grant will be awarded to the top five (5) entrepreneurial and technological innovations at the national level; and the grant will be disbursed in 55:45 ratio tranches directly to a dedicated account opened for the grant by Nigerian polytechnics and universities, subject to approved milestones.
Graduates of Nigerian polytechnics and universities shall be eligible to participate under the Term Loan Component of TIES.
The Term Loan Component consists of two tires for individuals and companies
Tier 1/ Individual projects
The maximum loan amount in this category is N5.0 million, with a 5-year repayment period. The current interest rate on the loan is 5% per year, however, it will increase to 9% on March 1, 2022. In addition, the loan has a maximum 12-month moratorium on principal and interest.
Documentation Collateral Requirements:
The applicant shall apply as a business entity registered with the Corporate Affairs Commission (CAC) and certified true copies (CTC) of relevant forms submitted;
Tier 2 – Partnership / Company projects
The loan limit for company projects is N25.0 million, with a 5-year term. The loan’s current interest rate is 5% per year, however, it will climb to 9% on March 1, 2022. In addition, the loan has a maximum 12-month principal and interest moratorium.
Documentation Collateral Requirements
The partnership or company shall apply as a registered business with the Corporate Affairs Commission (CAC) and certified true copies (CTC) of relevant forms submitted.
Each member of the partnership or company shall also submit:
Collateral Requirements Requirements
Five (5) top Nigerian polytechnics and universities with the best entrepreneurial pitches/ideas shall be awarded as follows:
The grants shall be in the following areas:
Note that the Scheme shall be operated for a period of 10 years in the first instance (not exceeding 31st December 2031) depending on the complexity of the project.
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© 2021 Nairametrics