CENTRAL BANK OF NIGERIA
GUIDELINES FOR THE IMPLEMENTATION OF
TERTIARY INSTITUTIONS ENTREPRENEURSHIP SCHEME (TIES)
1. Introduction
The Central Bank of Nigeria, pursuant to the CBN Act, 2007 and as part of its
policy measures to address rising youth unemployment and
underemployment, developed the Tertiary Institutions Entrepreneurship
Scheme (TIES), in partnership with Nigerian polytechnics and universities to
harness the potential of graduate entrepreneurs (gradpreneurs) in Nigeria.
The Scheme is 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.
The Scheme thus aims to provide an innovative financing model that will
create jobs, enhance the entrepreneurial ecosystem and support economic
growth and development.
The Guidelines outlines the operational modalities for the Scheme.
2. Objectives of the Scheme
The broad objective of the Scheme is to enhance access to finance by
undergraduates and graduates of polytechnics and universities in Nigeria with
innovative entrepreneurial and technological ideas. Other specific objectives
of the Scheme include:
i. Provide an enabling environment for co-creation, mentorship and
development of entrepreneurial and technological innovations;
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ii. Fast track ideation, creation and acceleration of a culture of innovationdriven entrepreneurship skills among graduates of polytechnics and
universities in Nigeria;
iii. Promote gender balance in entrepreneurship development through
capacity development and improved access to finance;
iv. Leapfrog entrepreneurial capacity of undergraduates and graduates for
entrepreneurship and economic development in partnership with
academia and industry practitioners; and
v. Boost contribution of non-oil sector to the nation’s GDP.
3. Focal Targets
In order to ensure that the Scheme achieves its desired objective and targetss,
the focal targets under the Scheme shall include the number of:
i. Gradpreneur-led innovative start-ups and businesses with access to
finance under the Scheme – 25,000 annually;
ii. Sustainable jobs created by gradpreneur-led businesses financed under
the Scheme – 75,000 annually;
iii. Female-gradpreneurs financed as a percentage of total projects financed
under the Scheme – 50 per cent per annum;
iv. Agropreneurs financed as a percentage of total projects financed under
the Scheme – 40 per cent per annum;
v. Creative entrepreneurs financed as a percentage of total projects
financed under the Scheme – 20 per cent per annum;
vi. Techpreneurs financed as a percentage of total projects financed under
the Scheme – 20 per cent per annum; and
vii. Other gradpreneurs financed as a percentage of total projects financed
under the Scheme – 20 per cent per annum.
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4. Eligible Activities
Activities to be covered under the Scheme shall include innovative start-ups
and existing businesses owned by graduates of Nigerian polytechnics and
universities in the following areas:
i. Agribusiness – production, processing, storage and logistics;
ii. Information technology – application/software development, business
process outsourcing, robotics, data management;
iii. Creative industry – entertainment, artwork, publishing, culinary/event
management, fashion, photography, beauty/cosmetics;
iv. Science and technology – medical innovation, robotics, ticketing
systems, traffic systems, renewable energy, waste management; and
v. Any other activity as may be determined by the CBN from time to time.
Note: Priority will be given to innovative entrepreneurial activities with high
potentials for export, job creation and transformational impact.
Trading activities shall not be eligible for financing under the Scheme.
5. Funding
The take-off capital will be sourced from both the Agribusiness / Small and
Medium Enterprise Investment Scheme (AgSMEIS).
6. Focal Components of the Scheme
The Scheme shall be implemented through three (3) components:
i. Term Loan Component;
ii. Equity Investment Component; and
iii. Developmental Component
6.1 Term Loan Component
Graduates of Nigerian polytechnics and universities shall be eligible to
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6.1.1 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.
6.1.2 Other Features
i. Focus shall be on both greenfield (new) and brownfield (existing)
projects in ratio 40:60, respectively.
ii. To promote gender equality, 50 per cent of the Term Loan Component
of the Scheme shall be earmarked for female-led or -owned projects.
iii. Facilities accessed under the Term Loan Component shall be
revolving, as upon full repayment, beneficiaries shall be eligible to
apply for additional and or increased funding to ensure sustainability
of financing support to projects.
iv. The facility shall be disbursed in tranches and subject to approved
terms and milestones.
v. The tenor of projects financed under the Scheme shall be determined
in relation to its cash flow and life of the underlying collateral.
vi. The applicants
vii. All movable assets financed under the Scheme or used as collateral
to secure the loan shall be registered with the National Collateral
Registry (NCR).
viii. Risk sharing (including recoveries) shall be in ratio 80:20 between the
Central Bank of Nigeria and the PFI for the amount in default after all
recoveries have been made.
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ix. In the event of three (3) consecutive monthly repayment defaults by
any beneficiary, the CBN and PFI shall review the repayment schedule
with the beneficiary with recovery notification issued to that effect.
x. Beneficiaries of other CBN’s interventions shall be eligible to
participate under the Scheme upon full repayment of amount
outstanding under the other earlier accessed intervention facility.
xi. This facility could be used for the refinancing of existing projects
subject to Management’s special approval.
6.1.3 Transaction Dynamics
i. Prospective applicants shall attend mandatory entrepreneurship
trainings with their respective Nigerian polytechnics and universities and
certificates of completion issued to trainees;
ii. Applications shall be submitted on a dedicated online portal
(https://cbnties.com.ng), with copies of relevant documents attached
for review, which shall include:
a. First degree certificate (BSc/HND/or its equivalent);
b. National Youth Service Certificate (NYSC) discharge or exemption
certificate;
c. Certificate of Participation issued by polytechnics and universities
evidencing entrepreneurship training;
d. Letter confirming the applicants’ deposit of required certificates from
PFI;
e. Projected Statement of Income, Statement of Affairs, and cash flow
projections for start-ups and businesses with less than 3 years of
operations;
f. Business plan outlining details, financials and economic benefits of
the projects.
iii. Submitted applications and certificates shall be transmitted directly to
the PFI for evaluation and documentation;
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iv. The portal shall be designed to allow the applicants select its PFI of
choice, which shall receive copies of the submitted applications for due
diligence checks and subsequent disbursement and monitoring of
financed projects;
v. The PFI shall provide to the applicants and forward to the CBN, the
following documents:
a. Copies of duly executed offer documents between the bank and
the loan applicants;
b. At least one (1) Credit Report of the promoter/entrepreneur;
c. Duly signed Global Standing Instruction (GSI); and
d. Proposed schedule of fund disbursement and repayment;
vi. The PFI shall register the submitted certificates with the National
Collateral Registry (NCR);
vii. Upon approval of application by the CBN, the approved sum shall be
released to applicants’ PFIs of choice in accordance with the approved
disbursement schedule;
viii. The PFI shall disburse the released funds into the applicants’ accounts
within five (5) working days with no restriction on access, upon
compliance with the terms for withdrawal;
ix. The PFI shall register all financed equipment under the Scheme with the
National Collateral Registry (NCR); and
x. The location of the business shall be mapped or tagged for monitoring
and evaluation purpose.
6.1.4 Repayment
Interest payment and principal repayment shall be made on monthly or
quarterly basis by the obligor depending on the established cash flow cycle
and in line with the approved repayment schedule.
6.1.5 Participating Financial Institutions
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The PFIs under this Scheme shall be deposit money banks (DMBs) and other
financial institutions as may be approved by the CBN.
6.2 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. The Component shall be implemented under the
AgSMEIS Equity window, with application for participation submitted on
i. The Bankers’ Committee Trust shall hold the equity on behalf of the
AgSMEIS Fund.
ii. The equity investments shall be in enterprises operating within the
eligible focal areas.
6.2.1 Investment Limit
The investment limit shall be subject to the limit prescribed in the AgSMEIS
Guidelines.
6.2.2 Investment Period
This shall be as follows:
i. Investment made shall be for a maximum period of ten (10) years (not
exceeding December 31, 2031).
ii. There shall be a 3-year lock-in period before exit in order to encourage
value creation and boost managerial capacity of businesses.
6.3 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 competition is aimed at raising awareness and visibility of
high-impact entrepreneurial/technological ideas among undergraduates,
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promote entrepreneurial talent hunts in Nigerian polytechnics and universities,
as well as encourage innovations that are commercially viable and with
transformational impact.
The Developmental Component shall also be utilized for the general
development of the MSME segment in the following areas:
i. Finance the development of the award-winning innovative
entrepreneurial/technological ideas;
ii. Research and development of high-impact technological innovations and
projects; and
iii. Support the development of financial infrastructure to facilitate the
entrepreneurship in Nigerian polytechnics and universities.
6.3.1. 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.
The Bank shall constitute a Body of Experts (BoE) from the private and public
sector for the biennial regional and national entrepreneurship competitions to
evaluate entrepreneurial and technological innovations submitted by Nigerian
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polytechnics and universities. The Body of Experts (BoE) shall recommend
projects with high potential and transformational impact for the grant award.
The composition of the BoE shall be as detailed below:
i. Four (4) representatives from the Bankers’ Committee;
ii. One (1) representative from consulting industry;
iii. One (1) nominee from SMEDAN;
iv. One (1) nominee from the NUC;
v. One (1) nominee from the NBTE; and
vi. One (1) nominee from the CBN (Secretary).
The Chair of the BoE shall be appointed by the CBN from the Banker’s
Committee.
Participation under the Developmental Component shall be restricted to
undergraduates of Nigerian polytechnics and universities.
6.3.2 Modalities
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
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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 recommendation of the
BoE; and
v. The Grant shall be disbursed in tranches of 55:45 ratio directly to a
dedicated account opened for the purpose of the grant by the Nigerian
polytechnics and universities, subject to approved milestones.
7. Stakeholders and Responsibilities
The responsibilities of the stakeholders shall include:
7.1 Central Bank of Nigeria (CBN)
The Central Bank of Nigeria shall:
i. Articulate clear Guidelines for the implementation of the Scheme;
ii. Partner with the private sector and Nigerian polytechnics and
universities in the development of the online application portal,
constituting the BoE and organising the national entrepreneurship
contest;
iii. Approve and disburse loan request to successful beneficiaries through
their PFIs;
iv. Engage independent monitors to carry out periodic verification and
monitoring projects financed;
v. Conduct project impact assessment in conjunction with the Monitoring
Team and other relevant stakeholders;
vi. Sensitize stakeholders and the general public on the activities of the
Scheme;
vii. Facilitate meetings of the BoE; and
viii. Review the Guidelines from time to time
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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 recommendation of the
BoE; and
v. The Grant shall be disbursed in tranches of 55:45 ratio directly to a
dedicated account opened for the purpose of the grant by the Nigerian
polytechnics and universities, subject to approved milestones.
7. Stakeholders and Responsibilities
The responsibilities of the stakeholders shall include:
7.1 Central Bank of Nigeria (CBN)
The Central Bank of Nigeria shall:
i. Articulate clear Guidelines for the implementation of the Scheme;
ii. Partner with the private sector and Nigerian polytechnics and
universities in the development of the online application portal,
constituting the BoE and organising the national entrepreneurship
contest;
iii. Approve and disburse loan request to successful beneficiaries through
their PFIs;
iv. Engage independent monitors to carry out periodic verification and
monitoring projects financed;
v. Conduct project impact assessment in conjunction with the Monitoring
Team and other relevant stakeholders;
vi. Sensitize stakeholders and the general public on the activities of the
Scheme;
vii. Facilitate meetings of the BoE; and
viii. Review the Guidelines from time to time
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7.3 Participating Finance Institutions
The PFIs shall:
i. Participate in the development of the online application portal to
facilitate submission of applications by prospective beneficiaries for the
term loan;
ii. Carry out all relevant due diligence on applicants and submitted
certificates under the term loan component of the Scheme;
iii. Provide at least one credit report on promoter(s) for all projects;
iv. Register all movable assets accepted or financed, including submitted
certificates, as collaterals for the loan with the National Collateral
Registry (NCR);
v. Issue a letter evidencing the registration of the applicant’s certificates
with the NCR;
vi. Forward verified and approved applications to the CBN for further
processing and approval;
vii. Disburse released funds to beneficiaries’ accounts within 5 working days
of receipt;
viii. In line with 8.3(vii), return undisbursed funds to the CBN after a period
of 14 working days of receipt of the funds;
ix. Remit monthly or quarterly interest and principal repayments to the CBN
within 5 working days of the subsequent month depending on the
approved repayment schedule;
x. Collaborate with the CBN in engaging independent monitors to carry out
periodic verification and monitoring projects financed;
xi. The PFI shall remit interests and principal repayments received to the
Scheme on monthly or quarterly basis depending on the established
cash flow cycle and in line with the approved repayment schedule;
xii. Render periodic returns as may be specified by the CBN from time to
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xiii. Discharge all movable collaterals used to securitize the loan on the
National Collateral Registry within one month of repayment, and notify
the customer accordingly; and
xiv. Comply with the Guidelines of the Programme.
7.4 Beneficiary
The beneficiary shall:
i. Apply on the dedicated online portal and provide all requisite
documentation to support the application;
ii. Present for verification original copies of submitted certificates and
documents;
iii. Submit business proposal and other documentation requirements
iv. Adhere strictly to the terms and conditions of the Scheme and avoid any
forms of plagiarism in the project idea;
v. Utilize the funds for the purpose for which it was granted;
vi. Present the business and its location for mapping/tagging, as well as
monitoring and evaluation;
vii. Maintain accurate and up-to-date records available for
inspection/verification by the CBN and Monitoring Team; and
viii. Adhere strictly to the terms and conditions of the Scheme.
8. Verification/Monitoring of Projects
Projects financed under the Scheme shall be monitored by independent
monitors jointly engaged by the CBN and PFI.
9. Discontinuation of Credit Facility
i. Whenever a loan is repaid or the Scheme is otherwise discontinued, the
PFI shall return the fund to the CBN.
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ii. The PFI shall discharge the movable collaterals from the National
Collateral Registry (NCR).
10 Dispute Resolution
All disputes shall be resolved in line with the Consumer Protection Regulations
of the Central Bank of Nigeria.
11. Exit Date
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.
12. Infractions and Penalties
The following, among others, shall constitute infractions under the Guidelines:
S/No. Infraction Penalty
1. Delay in disbursement of
funds to beneficiaries’
accounts
Monetary Policy Rate (MPR) plus 2
per cent of the amount
undisbursed to beneficiaries
2. Delay in remittance of
monthly interest and principal
repayments to the CBN by
PFIs
Monetary Policy Rate (MPR) plus 2
per cent on cumulative interest
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13. Management of the Scheme
The Scheme shall be managed by the Development Finance Department of
the Central Bank of Nigeria.
a. The CBN reserves the right to reject an application from any applicants
that does not meet the requirements of the Guidelines.
b. The CBN may amend this Guidelines from time to time and may waive
any part of this Guidelines upon the approval of the Governor.
14. Enquiries and Returns
All enquiries and returns should be addressed to:
The Director,
Development Finance Department,
Central Bank of Nigeria,
Corporate Headquarters
Central Business District, Abuja.
October 2021
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