The Tertiary Institutions Entrepreneurship Scheme (TIES)

The Tertiary Institutions Entrepreneurship Scheme was created by the Central Bank of Nigeria as part of its commitment to enhance economic growth by reducing level of unemployment among Nigerian graduates. The Scheme aims to transform students and graduates' mindsets away from white-collar jobs and toward a mindset of entrepreneurship that promotes job creation, economic growth, and long-term development.

The Central Bank of Nigeria (CBN) created TIES in collaboration with academia (Universities and Polytechnics) to help Nigerian graduate entrepreneurs realize their full potential by providing re-orientation, training, and an innovative funding model that will improve the entrepreneurial ecosystem and have a transformative impact on the economy, as seen on the financial institution’s website.

Objectives

The Scheme's overall goal is to make it easier for undergraduates and graduates with innovative entrepreneurial and technology initiatives to get funding. The Scheme's other specific goals are as follows:

·        Create a conducive environment for co-creation, mentoring, and advancement of entrepreneurial and technology innovations for value creation in collaboration with Nigerian polytechnics and universities for economic development and employment generation;

·        Fast-track ideation, creation, and acceleration of an innovation-driven entrepreneurship culture among Nigerian polytechnic and university graduates;

·        Promote gender equality in enterprise growth by building capacity and improving access to capital;

·        Develop undergraduate and graduate entrepreneurial ability for entrepreneurship and economic growth in collaboration with academics and industry experts; 

The Scheme's unique metrics and key performance indicators (KPIs) will be closely monitored on a regular basis. The following KPIs (specific and applicable) will be used:

·        25,000 gradpreneur-led creative start-ups and enterprises receive funding through the Scheme each year;

·        Annual number of jobs produced by gradpreneur-led enterprises sponsored by the Scheme – 75,000;

·        The percentage of female-gradpreneurs sponsored as a percentage of total projects financed under the Scheme is 50% per year;

·        Agropreneurs sponsored as a percentage of total projects financed through the Scheme - 40% per year.

Eligible Areas of Business

Innovative start-ups and fledgling enterprises owned by graduates of Nigerian polytechnics and universities would be covered under the Scheme in the following areas:

·        Production, processing, storage, and logistics are all aspects of agribusiness.

·        Application/software development, business process outsourcing, robotics, and data management are all examples of information technology.

·        Entertainment, artwork, publishing, culinary/event management, fashion, photography, and beauty/cosmetics are all examples of the creative sector.

·        Medical innovation, robotics, and ticketing are all examples of science and technology.

TIES Focal Components

Three (3) components will be used to carry out the Scheme:

Term Loans

Soft business loans will be used for this. Only Nigerian polytechnic and university graduates who have completed entrepreneurial courses will be eligible to participate in this Component.  

·        Teir 1:  Sole Proprietorship 

·        Tier 2: Small Business/Enterprise

Interest and principal repayments to the PFIs must be made on a monthly installment plan by the obligor in accordance with the approved repayment plan.

Developmental Component

Grants will be distributed as part of the Developmental Component. Nigerian polytechnics and universities will be able to apply for the grant through a biennial national entrepreneurship competition aimed at increasing awareness and accessibility of high-impact start-up ideas among undergraduates, promoting entrepreneurial competency hunts in Nigerian polytechnics and universities, and encouraging commercially viable and transformational innovations.

The following awards will be given to the top five (5) Nigerian polytechnics and universities with the greatest entrepreneurial pitches/ideas:

·        First place   N250.0 million;

·        Second place   N150.0 million;

·        Third place N100.0 million;

·        Fourth place  N75.0 million; and;

·        Fifth place   N50.0 million.

The Equity Investment Component

The Equity Investment Component will take the shape of fresh cash injection for start-ups, business expansion, or rehabilitating ailing entrepreneurial firms. The AgSMEIS Equity window will be used to implement the component.

·        Investment Restriction: The AgSMEIS Guidelines set a limit on how much money can be invested. Period of Investment: The procedure will be as follows:

·        The investment shall be made for a maximum of ten (10) years (not exceeding December 31, 2031).

·        Unless there is a major adverse occurrence, there would be a 3-year lock-in term before leave to drive value development and build managerial capacity. iii. The AgSMEIS Fund's equity will be held by the Bankers' Committee Trust.

·        The equity investments must be in businesses that operate within the designated area.