CBN: Empowering Nigerian Youths Through Credit Access and Capacity Building, by Rahma Olamide Oladosu
As part of its own contribution to the empowerment of Nigerian youths who make up the bulk of the country’s population, the Central Bank of Nigeria (CBN) has in recent times been prioritising youth-friendly credit facilities and capacity-building programmes. Governor Olayemi Cardoso’s tenure has been marked by a renewed focus on empowering young entrepreneurs and promoting financial inclusion
With over 60 percent of Nigeria’s population under the age of 25, the country holds immense potential for economic expansion. However, young people continue to face significant challenges in entrepreneurship and employment. Limited access to finance, inadequate business training, and structural barriers in the business environment hinder their ability to contribute meaningfully to the economy. One of the most pressing issues is access to funding, as traditional commercial banks impose high-interest rates and collateral requirements that are difficult for young entrepreneurs to meet. In response, Cardoso’s leadership has championed policies that make financial products more accessible to startups, small businesses, and innovative ventures.
Beyond financing, the CBN under Cardoso has emphasised the need for capacity-building programmes that equip young entrepreneurs with essential skills. These programmes focus on financial literacy, business management, and digital education, ensuring that young Nigerians are not only provided with capital but also with the necessary knowledge to sustain and scale their businesses. This holistic approach aligns with Cardoso’s broader vision of economic stability, which places emphasis on long-term growth rather than short-term financial injections.
To achieve these objectives, the CBN has enhanced several key initiatives that provide both credit and business training opportunities. Among them is the Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS), which supports youth entrepreneurship in agriculture and other sectors. Under Cardoso’s leadership, this scheme has been strengthened to offer loans at single-digit interest rates without requiring stringent collateral, making it easier for young entrepreneurs to access funding. Thousands of Nigerians have benefited from this initiative, leading to increased participation in agriculture, technology, and manufacturing.
Another significant intervention is the NIRSAL Microfinance Bank (NMFB) loan programmes, particularly the Nigeria Youth Investment Fund (NYIF). This scheme provides credit with flexible repayment terms to enable young entrepreneurs to develop their businesses sustainably. The CBN, under Cardoso, has focused on streamlining these funds to ensure transparency and efficiency, reducing bureaucratic hurdles that previously hindered access to financial support. Programmes such as the Targeted Credit Facility (TCF) have also been instrumental in helping businesses recover from economic downturns, ensuring that young entrepreneurs remain resilient despite financial challenges.
Recognising the need to instill an entrepreneurial mindset among students and graduates, the CBN has reinforced the Tertiary Institutions Entrepreneurship Scheme (TIES). This initiative provides funding and mentorship opportunities to help young Nigerians transition from academic institutions into business ownership rather than solely seeking formal employment. By nurturing entrepreneurship from an early stage, Cardoso’s administration aims to reduce youth unemployment and contribute to economic diversification.
In addition to direct financial support, the CBN has expanded financial literacy schemes under Cardoso’s leadership. These programmes, in partnership with financial institutions, business incubators, and digital platforms, offer training in financial management, digital skills, and business development. By improving young entrepreneurs’ knowledge of financial planning, investment strategies, and resource management, these initiatives ensure that credit facilities are effectively utilised, leading to sustainable enterprises.
The economic impact of youth-friendly credit and capacity-building programmes is far-reaching. One of the most notable benefits is job creation. By supporting young entrepreneurs, Cardoso’s policies encourage the establishment of new businesses, which in turn generate employment opportunities. This reduces pressure on the government and the formal job market, allowing the private sector to absorb more of the youth workforce. Furthermore, these initiatives promote economic diversification, fostering growth in sectors such as agriculture, technology, and the creative industries, which are critical for Nigeria’s long-term stability.
Financial inclusion has also been a priority under Cardoso’s leadership. Many young Nigerians remain excluded from the financial system due to stringent banking requirements. The introduction of more accessible credit facilities ensures that more young people can participate in the formal financial sector. This, in turn, fosters a culture of saving, investing, and business expansion, ultimately contributing to national economic growth.
Innovation is another key area where Cardoso’s leadership has had a significant impact. Nigerian youths are at the forefront of technology-driven enterprises, including fintech, e-commerce, and digital marketing. By providing access to credit, the CBN has enabled these young innovators to scale their businesses, invest in research and development, and position Nigeria as a leader in Africa’s digital economy. Supporting the innovation ecosystem ensures that Nigeria remains competitive in the global market and attracts foreign investment.
Despite the progress made, challenges remain in implementing these initiatives effectively. One of the key hurdles is ensuring that young entrepreneurs are aware of and can access these opportunities. Cardoso has emphasised the need for increased public awareness through digital platforms, community engagement, and strategic partnerships to reach more potential beneficiaries.
Bureaucratic inefficiencies in loan disbursement remain a concern, and Cardoso has directed efforts to streamline processes, reduce delays, and improve transparency. Ensuring that funds reach the intended recipients in a timely manner is crucial for the success of these initiatives.
Loan repayment and sustainability are also critical issues that Cardoso’s leadership is actively addressing. While youth-friendly credit facilities have expanded access to funding, ensuring repayment is essential for the continuity of these programmes. The CBN has integrated financial management training into its credit initiatives, helping beneficiaries develop effective repayment strategies. Additionally, the bank is exploring flexible repayment structures that consider the realities of startups and small businesses.
Public-private collaboration remains a cornerstone of Cardoso’s approach to sustaining youth empowerment efforts. The government alone cannot drive youth entrepreneurship; stronger partnerships with banks, venture capitalists, and corporate organisations are essential. Under Cardoso’s guidance, the CBN has been actively engaging private sector stakeholders to expand funding options and mentorship opportunities for young entrepreneurs. By fostering these collaborations, Nigeria’s youth-focused financial initiatives can be more effective and sustainable in the long run.
Cardoso’s leadership at the CBN has brought renewed energy and direction to youth-friendly economic policies. By prioritising accessible credit and capacity-building, his administration is empowering young Nigerians to drive economic growth, create jobs, and foster innovation. While challenges such as bureaucratic bottlenecks, awareness gaps, and loan sustainability remain, Cardoso’s strategic interventions and policy reforms are laying the foundation for a more inclusive and resilient economy.
Oladosu is a Senior Staff Writer with the Economic Confidential
