The lack of job opportunities in Nigeria has made it essential for citizens to seek out other means of making money. Currently, the best option an unemployed Nigerian has is to create a business for yourself that will fetch you income daily. Fortunately, the Government has made it easier for fresh graduates to achieve their entrepreneurship goals through the TIES loan scheme. This scheme was designed to empower Nigerian graduates who have business ideas and need capital to execute them.
An Overview of TIES Loan
As part of its measure to boost general economic growth and decrease unemployment among graduates in Nigeria, the Central Bank of Nigeria put forward the Tertiary Institutions Entrepreneurship Scheme (TIES). Essentially, this Scheme was designed to build a paradigm transition among undergraduates and Nigerian graduates, from the quest for white-collar employment to a culture of entrepreneurship. This culture is geared towards job creation, sustainable development for Nigerians, as well as economic growth.
The Central Bank of Nigeria(CBN) created the Tertiary Institutions Entrepreneurship Scheme (TIES), in coalition with academic Universities and Polytechnics to express the prospect of Nigerian graduate entrepreneurs (gradpreneurs). This scheme will deliver re-orientation, training as well as a creative financing model that will help to enhance the entrepreneurial ecosystem with a transformational influence on the economy.
How Can I Apply For TIES?
To apply for this loan scheme, follow the steps listed below:
- Visit https://cbnties.com.ng
- Next, tap on “Apply Now”
- Enter the required details on the registration form and submit it.
Wait for a representative of the platform to contact you and tell you the next steps to take to complete the application process.
How Many Components of Loan Does the TIES Offer?
The TIES Scheme is primarily executed through three (3) major components. They include:
1. Term Loan Component
The Term loan component will be in the form of soft business loans only. Only graduates of either Nigerian polytechnics or universities who have gone through entrepreneurship training are eligible to partake in this Component. This component has a loan limit of 25 million and a tenor of 5 years.
2. Equity Investment Component (Starting soon)
The Equity Investment Component will be in the form of injection of new capital for businesses, expansion of already established businesses or reviving of dying entrepreneurial businesses. This component will be executed under the AgSMEIS Equity window.
3. Developmental Component (Starting soon)
The Developmental Component will be shelled out in the form of Grants. This Grant will be obtainable by Nigerian polytechnics and universities via a biennial national entrepreneurship contest geared toward raising awareness about businesses among undergraduates.
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Is TIES a Grant?
The Term Loan Component of TIES is NOT a grant, however, it is a loan repayable over a specified tenor for a distinct purpose with explicit terms and conditions. As for the Equity Investment Component, it will come in the form of injection of fresh capital for small start-ups, development of already established businesses and revival of dying entrepreneurial businesses. Lastly, the Development Component of TIES is going to be in the form of grants offered by Nigerian Polytechnics and Universities after partaking and succeeding in a National biennial (ie. once every 2 years) entrepreneurship competition.
What Are the Eligible Activities (Areas of Business) under TIES?
The activities which are covered under the Scheme generally include creative start-ups and growing businesses owned by Nigerian graduates of polytechnics and universities in these areas:
- Agribusiness – production, processing, storage and logistics
- Information technology – application/software development, robotics, business process outsourcing, data management
- Creative industry – artwork, entertainment, publishing, fashion, culinary/event management, photography, beauty/cosmetics
- Science and technology – medical innovation, robotics, ticketing.
Therefore, your business or start-up must belong to any of these groups to be qualified for TIES as a graduate of any Nigerian university or polytechnic.
Who is Eligible for the TIES Loan?
The Nigerian Government will only consider graduates of Nigerian universities or polytechnics. Also, the Government will prioritise creative entrepreneurial activities that have a very high prospect for export, job creation, and transformational impact.
What are the Eligibility Criteria for Participation for the Term Loan Component under TIES?
Here is a list of the eligibility criteria for participating in this loan scheme:
- Applicants under the Scheme must be graduates of either Nigerian Polytechnics or Universities:
- You must have a degree certificate (BSc/HND/ or its equivalent
- National Youth Service Certificate (NYSC) discharge or exemption certificate
- Certificate of Participation given by Polytechnics and Universities proofing your entrepreneurship training; and
- Not more than 7 years post-NYSC.
What Documents Do I Need to Apply for a TIES Loan?
To apply for TIES, you need these crucial documents:
1. Bank Verification Number (BVN)
2. Confirmed first-degree certificate (BS/HND or its equivalent)
3. Confirmed National Youth Service Certificate
(NYSC) discharge or exemption certificate
4. Certificate handed out by polytechnics and universities evidencing your entrepreneurship training
5. Duly signed Global Standing Instruction (GS|)
6. Third-party guarantee. This has to be a senior federal/state public or civil servant, clergy, reputable traditional ruler, professionals (doctors, lawyers, accountants etc.), verified staff of established companies.
7. Your Statement of Income, Statement of Affairs, as well as cash flow predictions for both your start-ups and businesses. The business should have operated for less than 3 years.
8. Clear business plan outlining details, financials, and the economic advantages of your projects.
Note that to be eligible, you must not be more than 7 years post-NYSC.
What is the Maximum Amount of Loan I Can Access under the TIES?
Here are the loan amounts you can get access to based on your level:
1. Tier 1 (Individual projects): Your loan limit is N5 million with a loan tenor of only 5 years.
2. Tier 2 (Partnership / Company projects with not more than 5 individual partners): Your loan limit is N25 million for a loan tenor of only 5 years.
What is the Interest Rate for TIES?
The interest rate for graduates who take out a loan from this scheme is 9% of the loan amount. This rule is effective from March 2023.
Can I Apply for TIES as an Undergraduate?
No, the loan scheme is only for graduates of Nigerian Universities and Polytechnics who have successfully finished their NYSC and have received their Discharge or Exemption Certificate.
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How Much Should I Pay for the Online Application?
No payment is needed for the submission and processing of your TIES loan application. You can do everything by yourself on the website.
What Type of Collateral Can I Use to Apply for TIES?
The collateral that is acceptable under TIES intervention are:
1. Your first-degree certificate
2. NYSC discharge or exemption certificate
3. Duly signed and stamped Global Standing Instruction (GIS)
4. Third-party guarantees obtained from senior civil or public servants, clergy of high reputation, bankers, lawyers, accountants, medical doctors, etc.
*1-3 will be duly registered on the National Collateral
Registry (NCR)
*1-4 will be uploaded on the TIES portal
How Long is the Moratorium on TIES?
There is a maximum of 12 months (52 weeks) moratorium on your principal and interest. This is the moratorium for your loan.
How Will the Loan Repayment be Scheduled?
Interest payment and principal reimbursement for this scheme is made on a monthly or quarterly intervals depending on your existing cash flow cycle. Also, the repayment schedule is approved based on your loan amount.
What is the Maximum Loan Tenor for TIES?
The maximum loan tenor you get for your TIES loan is only 5 years. So any amount of money you borrow must be repaid within 5 years.
As a trader, Can I Apply for TIES?
No, traders are not eligible to apply for this scheme. Unfortunately, trading activities are not eligible for financing under this initiative. However, priority is given to innovative entrepreneurial activities that have high prospects for export, job creation, as well as transformational impact.
What is the Sunset Date for TIES?
The Scheme will be conducted for a duration of 10 years (not surpassing 31st December 2031) depending on the complexity of the project.
How Can I Contact TIES (Tertiary Institutions Entrepreneurship Scheme)?
You can contact the Scheme through their website. Here is a direct link to follow if you want to contact TIES https://cbnties.com.ng/contact. Enter your details and inquiry, then send it. A representative will reply briefly after this.
Website: www.cbnties.com.ng
Bottom Line
TIES loan is a clever initiative established by the Federal Government of Nigeria to help fresh graduates who are finding it difficult to get a job. If you fit into this category, then you need to go through the eligibility criteria listed above to know if you are qualified to access the Scheme. For people qualified to access loans from this Scheme, visit their official platform and start applying to receive your loan in no time.
