CBN-Tertiary-Institutions-Entrepreneurship-Scheme

CBN Tertiary Institutions Entrepreneurship Scheme (TIES) 2022

Application for the CBN Tertiary Institutions Entrepreneurship Scheme is ongoing!

TIES is an initiative targeted at empowering graduates of Nigerian Polytechnics and Universities with entrepreneurial skills for Entrepreneurship Development, Economic Development, and Job creation.

Key Performance Indicators

Comprehensive monitoring of specific benchmarks and key performance indicators (KPIs) under the Scheme shall be undertaken regularly. The KPIs (specific and relevant) shall include:

  1. Number of gradpreneur-led innovative start-ups and businesses with access to finance under the Scheme – 25,000 annually;
  2. Number of sustainable jobs created by gradpreneur-led businesses financed under the Scheme – 75,000 annually;
  3. Number of female-gradpreneurs financed as a percentage of total projects financed under the Scheme – 50 per cent per annum;
  4. Number of agropreneurs financed as a percentage of total projects financed under the Scheme – 40 per cent per annum;
  5. Number of creative entrepreneurs financed as a percentage of total projects financed under the Scheme – 20 per cent per annum;
  6. Number of Techpreneurs financed as a percentage of total projects financed under the Scheme – 20 per cent per annum; and
  7. Number of other gradpreneurs financed as a percentage of total projects financed under the Scheme – 20 per cent per annum.

Eligible Activities (Areas of Business)

The activities to be covered under the Scheme shall include innovative start-ups and budding businesses owned by graduates of Nigerian polytechnics and universities in the following areas:

  1. Agribusiness – production, processing, storage and logistics;
  2. Information technology – application/software development, business process outsourcing, robotics, data management;
  3. Creative industry – entertainment, artwork, publishing, culinary/event management, fashion, photography, beauty/cosmetics;
  4. Science and technology – medical innovation, robotics, ticketing

NOTE: Trading activities shall not be eligible for financing under the Scheme.

Focal Components of TIES

The Scheme shall be implemented through three (3) components:

Term Loans

This shall be in the form of soft business loans. Only graduates of Nigerian polytechnics and universities that have undergone entrepreneurship training shall be eligible to participate under this Component.

  • Tier 1 – Sole ProprietorshipDescription: For sole proprietorship businesses, limited liability companies and small companies as defined by CAMATenor: 5 years loan Limit: N5 million interest Rate:5% from now to February 28, 2022 ( and 9% from March 1, 2022)Moratorium: Maximum of 12 months (dependent on type of business)

Tertiary Institutions Entrepreneurship Scheme – Requirements

  1. Bank Verification Number (BVN);
  2. Verified first degree certificate (BSc/HND or its equivalent);
  3. Verified National Youth Service Certificate (NYSC) discharge or exemption certificate;
  4. Certificate issued by polytechnics and universities evidencing entrepreneurship training;
  5. Duly signed Global Standing Instruction (GSI);
  6. Third party guarantee: a senior federal/state civil or public servant, clergy, recognised traditional ruler, professionals (lawyers, doctors, accountants etc.), confirmed staff of established companies.
  • Tier 2 – Small Company/EnterpriseDescription: For Partnerships registered either as Limited Liability Companies and Small Companies as defined by CAMATenor:5 years loan Limit: N25 million interest Rate: 5% from now to February 28, 2022 ( and 9% from March 1, 2022)Moratorium: Maximum of 12 months (dependent on the type of business)

Requirements

The group shall apply as a business entity registered with the Corporate Affairs Commission (CAC) and certified true copies (CTC) of relevant forms submitted.

  1. Bank Verification Number (BVN);
  2. Verified first degree certificate (BSc/HND or its equivalent);
  3. Verified National Youth Service Certificate (NYSC) discharge or exemption certificate;
  4. Certificate issued by polytechnics and universities evidencing entrepreneurship training;
  5. Duly signed Global Standing Instruction (GSI);
  6. Third party guarantee: a senior federal/state civil or public servant, clergy, recognised traditional ruler, professionals (lawyers, doctors, accountants etc.), confirmed staff of established companies.

Repayment: Interest and principal repayment shall be made monthly on an installment basis by the obligor to the PFIs according to the approved repayment schedule.

Developmental Component

The Developmental Component shall be disbursed in the form of Grants. The Grant shall be accessible by Nigerian polytechnics and universities through a biennial national entrepreneurship competition aimed at raising awareness and visibility of high-impact start-up ideas among undergraduates, promoting entrepreneurial talent hunts in Nigerian polytechnics and universities and encouraging innovations that are commercially viable and with a transformational impact.

The top five (5) Nigerian polytechnics and universities with the best entrepreneurial pitches/ideas shall be awarded as follows:

1First place N250.0 million;
2Second place N150.0 million;
3Third place  N100.0 million;
4Fourth place   N75.0 million; and;
5Fifth place   N50.0 million.

The grants shall be in the following areas:

  1. Agribusiness;
  2. Information technology;
  3. Creative industry; and
  4. Science and technology

Interested Nigerian polytechnics and universities shall apply on a dedicated online portal with brief details of the project, likely impact, and evidence of the originality of the project.

Equity Investment Component (Starting Soon)

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. The Component shall be implemented under the AgSMEIS Equity window.

Investment Limit: Subject to the limit prescribed in the AgSMEIS Guidelines. Investment Period: This shall be as follows:

  1. Investment made shall be for a maximum period of ten (10) years (not exceeding December 31, 2031).
  2. There shall be a 3-year lock-in period before exit in order to encourage value creation and boost managerial capacity of business, unless there is a material adverse event. iii. The Bankers’ Committee Trust shall hold the equity on behalf of the AgSMEIS Fund.

The equity investments shall be in enterprises operating within the eligible focal areas.

Deadline: Registration closes on 1st March, 2022

Foe further enquires visit TIES official website

FAQs on Tertiary Institutions Entrepreneurship Scheme

Apply through https://cbnties.com.ng

The Scheme shall be implemented through three (3) components:

  1. Term Loan Component;
  2. Equity Investment Component;
  3. Developmental Component
  1. Applicants under the Scheme shall be graduates of Nigerian Polytechnics and Universities:
  2. First degree certificate (BSc/HND/ or its equivalent);
  3. National Youth Service Certificate (NYSC) discharge or exemption certificate;
  4. Certificate of Participation issued by Polytechnics and Universities evidencing entrepreneurship training; and
  5. Not more than 7 years post-NYSC.

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