I hope i am posting this in the right section.

I have never believe the Nigerian Governemnt initiative on anything, as at a tender age i was exposed to a lot of things. I dont believe in governemnt jobs, governemnt talks even in governemnt help as i believe its a waste of time. my orientation about governemnt is "they don't do what they are expected to".

SO WHY MY RANT

I have always had passion to start my own company and be my own boss and use what i learned to better the lifes of people around me. Education to me is not to boost my status but to use my gained knowledge to improve the lifes of others.

i stumbled on a programme been run by Central bank of Nigeria called Youth Initiative Entrepreneurship Development program (YIEDP), its a program cbn uses to develop young Nigerians, the program partners with a bank.

After been picked as a successful candidate it was one of the good news i heard that day when the mail came in.
now during the training, some things were said to us which i remember
1. We do not need any collateral except NYSC discharge certificate and our Tetiary certificate
2. the program is been funded as a 50-50 % thing by CBN and the Bank
3. Its a loan not a Grant
4. 9% interest to be paid fixed, as much as we clamored for explanation on this neither cbn, the bank representative nor our tutors could explain this to our satisfaction (don't blame me the closest to banking i studied was economics in secondary school).

Now my issues with the program
As i was called to come and receive my offer letter from the bank to start my business (its a startup business) the clauses in the offer letter didnt tally with what we were told in the initial stage of the program.

1. I needed two guarantors to stand for me.
2. The guarantors would sign a 150% undated cheque amount of the loan as security to the bank (really, if my guarantor had that amount, i would have offered an equity loan to such person)
3. the bank was talking about some un budgetted expenses which, I, the borrower had to bear (insurance, maintenance etc), if i was told about this at the onset, i would have made provision for it, the bank should expect its a startup, and shouldnt burden the debtor with too much pressure.
4. The bank isn't interested in crucifying the borrower in case of an issue with the business, they are only interested in crucifying the guarantors and the security
5. With the moratorium period and how the loan is to be repaid, i just wonder whether the banks professional read my business proposal at all. how do you expect a business making its first sales in 6 months after startup to start paying back the loan in 2 months after startup, very unprofessional.
6. 80% of my business needs is for assets and equipments which the bank are willing to with hold till i have paid off the loan, isnt that enough for collateral and security as the bank would even be the ones to purchase it for me.
7. with all the hefty and grammatical words used in the agreement, it makes me think if it isnt more of modern slavery than assistance.
8. if central bank says it would fund 50% of the business and it is owned by the government, i wonder why the bank is insisting on security (150% undated cheque), guarantor and the unprofessional pay back time.
9. With what i have seen so far, seems the bank isnt willing to give the loan out, but because the CBN has twist(ed) their hands, rather than say no, they decided to make the agreement tough for prospective clients.

I didnt write this piece to discredit anyone, but if the government had made all this known to me, i wont even bother registering and keeping my hopes high for this program. But anyway, it made me stronger that if you want something done, you have to do it yourself.

Hmmm

This is serious

Permit me to share Your story.
I am akin to your situation

nitt:
Permit me to share Your story.

I am akin to your situation

I give you permission provided my words arent twisted to cause me legal litigation/issues

i understand your views clearly. banks are out for profit. they don't care about what you do and how you do it. what is most important to them is profit. I would suggest if we youth can appreciate ideas like crowd funding. and if big companies can lend at Interest below banks to their selves what happened in USA in 1980s to bank will happen to them.

nurey:


I give you permission provided my words arent twisted to cause me legal litigation/issues

You have my assurance.

Terrible. I am sure the CBN is aware of this but can't and won't do anything about it.
Nigerian banks are useless