All you Need to Know About the CBN’s Tertiary Institutions Entrepreneurship Scheme (TIES)‘
The Central Bank of Nigeria (CBN), on Wednesday, issued the guidelines for the implementation of the Tertiary Institutions Entrepreneurship Scheme (TIES). The CBN’s Tertiary Institutions Entrepreneurship scheme was according to the CBN Act, 2007 and “as part of its policy measures to address rising youth unemployment and underemployment.”
The apex bank, which released the guidelines of the initiative in Abuja, said the scheme was designed to create a paradigm shift among undergraduates and graduates from the pursuit of white-collar jobs to a culture of entrepreneurship development for economic development and job creation.
Objective
The CBN said the objective of the TIES is to enhance access to finance by undergraduates and graduates of polytechnics and universities in Nigeria with innovative entrepreneurial and technological ideas. The scheme is targeted at financing 25,000 gradpreneurs annually, which will, in turn, create an additional 75,000 sustainable jobs annually, according to Apex bank.
Eligibility
Startups and existing businesses in areas such as agribusiness, information technology, creative industry, as well as science and technology are eligible for financing under the scheme. However, priority would be given to innovative entrepreneurial activities with high potentials for export, job creation and transformational impact.
Component of the Scheme
The scheme will be implemented through three components namely term loan, equity investment and developmental components.
Loan Component
Under the loan component, an individual project can access a maximum loan of N5 million with a five-year tenor and interest rate of five per cent per annum (nine per cent effective from March 1, 2022, or as may be prescribed by the CBN). For partnership/company projects, the loan is limited to N25 million.
Equity Investment Component
The equity investment component shall be in the form of injection of fresh capital for start-ups, expansion of established businesses or reviving of ailing entrepreneurial businesses.
Developmental Component
The developmental component shall be disbursed in the form of grants to Nigerian polytechnics and universities in a national biennial entrepreneurship competition. The apex bank said it would award N500 million worth of grants to five top Nigerian polytechnics and universities with the best entrepreneurial pitches/ideas. Only undergraduates of Nigerian polytechnics and universities are eligible to participate under the developmental component.
Eligibility Criteria for Participation
Applicants under the Scheme shall be graduates of Nigerian polytechnics and universities with:
i. First-degree certificate (BSc/HND/ or its equivalent);
ii. National Youth Service Certificate (NYSC) discharge or exemption certificate;
iii. Certificate of Participation issued by polytechnics and universities evidencing entrepreneurship training; and
iv. Not more than 7 years post-NYSC.
Award of Grants
Five (5) 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; and
▪ Fifth place – N50.0 million.
The grants shall be in the following areas:
i. Agribusiness;
ii. Information technology;
iii. Creative industry; and
iv. Science and technology.
Repayment
Interest payment and principal repayment shall be made on a monthly or quarterly basis by the obligor depending on the established cash flow cycle and in line with the approved repayment schedule.
Application Process
i. 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;
ii. The submitted applications shall be evaluated by the BoE through engagements that showcase undergraduates competing by pitching entrepreneurial and technological innovations at regional levels, with finalists proceeding to the national event for final consideration and ranking by the BoE;
iii. The showcasing programmes shall be broadcasted for four (4) weeks on platforms such as social media and national television stations (at least two) to help highlight the value of entrepreneurship and change attitudes, as well as social perceptions about entrepreneurship;
iv. Final top five (5) entrepreneurial and technological innovations at the national level shall be awarded the grant on the recommendation of the BoE.
For more information, visit cbn.gov.ng