The National Bureau of Statistics reports that 31.7% of young people in Nigeria do not have access to bank loans to finance their businesses due to high interest rates.
The bureau said so in its national youth survey for 2020, obtained from its website in Abuja on Monday.
According to him, the report is a collaborative effort between the Federal Ministry of Youth Development and Sports and the NBS.
He also said that strict banking policies, government policies and other measures adopted by banking institutions make it difficult for young people to finance their businesses through bank loans.
Giving a breakdown of the survey results, the NBS said that strict banking policies accounted for 24.8 percent of young people without access to bank loans, 7.3 percent attributed their challenges to government policies while 13.2 percent of young people gave other reasons.
“At the zonal level, young people from South-South 45.7% and South-West 35.5% were unable to access bank loans due to the high interest rate; while the youth of the North West 54.5% and the North Center 33.8% were unable to access bank loans due to strict policies.
“Young people in the South-South 15.7% and the North-East 13.3% have not been able to access bank loans due to government policies. ”
He said, however, that for those who had access to bank loans, nationally, 55.1% of young women had access than their male counterparts, estimated at 44.9%.
Analyzing the main challenges faced by young people in businesses, the report says the survey indicated different types of challenges faced by young people in their businesses.
Nationally, 86.1% of young people faced the challenge of accessing funds to finance their businesses, while 4.9% faced the challenge of inconsistent government policies, she said. .
He said a further 4.6% faced the challenges of obsolete equipment while three percent faced the challenges of lack
adequate training in relation to their companies.
“At the zonal level, most young people in all areas reported the challenge of financing their businesses; young people from the South-West (100%) are at the top of the list, followed by the North-East at 93.6%, while young people from the South-East (78.1%) are the least numerous.
“However, young people from the Center-North (9.2%) were faced with the challenge of obsolete equipment for their businesses, followed by young people from the South-East (3.5%).
“Meanwhile, young people in the South East (10%) reported inconsistencies in government policies as a major challenge affecting their businesses.
In terms of sources of business finance, the survey indicated that young people from the six geopolitical zones seek funds to start their businesses through personal savings, loans, family sources, cooperatives / Esusu, grants and more. other sources.
He said nationally, 34.5% of young people obtained funds through government grants to start their businesses, while 29.7% of young people used their personal savings.
The report adds that 15.1 percent got funds through cooperative savings and 2.4 percent of young people got a loan to start their business.
“The results at the zonal level show that 96.6% of the young people of the South-South obtained grants to start their business and 49.2% of the young people of the Center-North also obtained grants to start their business.
“Meanwhile, in the South-West, 26.2% of young people obtained funds through cooperative savings to start their business, while in the North-West, 44.4% and the South-West 24 , 8% of young people obtained funds from other sources.
He added that in the six geopolitical zones, more young women (65.4%) operated business enterprises than their male counterparts.
He indicated that the North West with 82.9% had the highest number of young women running business enterprises, followed by South-South (73.5%), Center-North (70.7%), while the North-East accounted for 36%.
On the other hand, 64 percent of young men in the Northeast were engaged in business, more than women, followed by the Southeast (57.7 percent) while the Northwest had only 17.1. percent of young men in business enterprises.
For business registration, the result indicated that only 8.9% of young people registered business enterprises in the six geopolitical zones.
The Nigeria News Agency reports that the survey follows the 2012 version of the National Baseline Youth Survey, as the NBS attempts to fulfill its mandate of providing credible and comprehensive statistics at all levels of the country.
In addition, the report strengthens the capacity of policy makers and other stakeholders to improve the effectiveness of the policies they propose through the use of evidence.