Nigerian Government to Provide Grants and BOI Loans for TVET Graduates to Launch Businesses

The Federal Government of Nigeria has announced a new initiative to empower graduates of Technical and Vocational Education and Training (TVET) programs by providing entrepreneurial grants and access to low-interest loans through the Bank of Industry (BOI). The scheme aims to help young graduates start and grow businesses immediately after completing their practical training.

Minister of Education, Tunji Alausa, disclosed the plan during a recent interview, highlighting the government’s commitment to strengthening TVET as a key driver of skills development, job creation, and economic growth. “As graduates complete their training, we will provide them with entrepreneurial grants to kickstart their businesses,” he explained. “For those requiring additional capital, arrangements have been made with the Bank of Industry to offer soft loans at single-digit interest rates.”

Practical Skills for Economic Empowerment

The enhanced TVET framework targets the growing need for skilled local labor in areas such as electrical work, plumbing, renewable energy services, tiling, livestock management, and CNG vehicle conversions. These skills are now recognized as highly valuable and often command premium earnings in both local and international markets.

To maximize the impact of training, the government has adopted a MasterCraft model that emphasizes hands-on learning, with 80% practical training and 20% classroom instruction. Experienced artisans and industry professionals mentor trainees to ensure they acquire skills relevant to current market demands.

How the Support Package Works

TVET graduates will benefit from:

• Entrepreneurial grants to help start businesses immediately after training.
• Access to BOI soft loans at single-digit interest rates for additional capital.
• Continued engagement with industry partners for work experience, mentoring, and employment opportunities.

The program also supports trainees during their learning phase, with a monthly stipend of ₦22,500 provided to cover transportation and basic expenses, helping improve retention and completion rates.

Driving Entrepreneurship and Economic Growth

By combining skills training with financial support, the government aims to transform TVET graduates into entrepreneurs who can create jobs, stimulate local supply chains, and strengthen Nigeria’s micro, small, and medium enterprise (MSME) ecosystem. Experts note that such initiatives are crucial for reducing unemployment, boosting local economic activity, and reducing dependence on foreign skilled labor.

The initiative is part of a broader government strategy to position TVET as a central pillar for sustainable economic development, ensuring that technical graduates have the tools and resources to build profitable businesses while contributing to Africa’s largest economy.