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FG Announces Startup Grants and BOI Soft Loans TVET Trainees Graduates to Launch Businesses

Federal Ministry of Education Logo and TVET trainees logo
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The Federal Government has announced that beneficiaries of the Technical and Vocational Education and Training (TVET) programme will receive startup grants and gain access to soft loans from the Bank of Industry (BOI) to help them establish their own businesses after completing their training. This is for TVET trainees graduates.

The Minister of Education, Dr Tunji Alausa, disclosed this during an interview on Channels Television, where he explained that the government is repositioning technical and vocational education to become a major driver of job creation, skills development, and economic growth in Nigeria.

According to the minister, the renewed focus on TVET is part of a broader strategy to reduce Nigeria’s reliance on foreign artisans and rebuild a strong, skilled local workforce across key sectors of the economy.

He noted that many technical jobs in Nigeria are currently being handled by workers from neighbouring countries, a trend the government is determined to reverse by investing heavily in local skills development.

Alausa also highlighted the economic value of vocational skills, pointing out that in many developed countries, skilled workers such as plumbers and electricians often earn more than some professionals. He said this reality shows the importance of restoring dignity and value to technical skills in Nigeria.

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To achieve this, the government has designed a four-point reform strategy for the TVET system.

1. Financial Support for Students

The first step is direct financial support for students enrolled in TVET programmes. According to the minister, beneficiaries will be paid stipends to attend technical and vocational schools, with the full details of the payment structure to be announced when the programme is fully rolled out.

2. Proper Funding for Institutions

The second step focuses on strengthening the institutions themselves. The government will pay proper tuition fees to participating schools to enable them to upgrade workshops, expand infrastructure, and increase training capacity.

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3. MasterCraft Model: 80% Practical, 20% Theory

The third and most critical pillar is the introduction of the MasterCraft training model, which places strong emphasis on hands-on learning. Under the new system, training will be 80 per cent practical and only 20 per cent theoretical.

Artisans and professionals from large, medium, and small industries will be engaged to directly train students. The government will pay these trainers monthly based on the number of students they can effectively train.

To ensure quality and accountability, the minister said 774 performance monitoring officers will be recruited — one for each local government area — to supervise training centres and confirm that students are receiving proper practical instruction.

Three Training Tracks Under TVET

Alausa explained that the TVET framework will operate through three categories of training centres:

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1. Skill Training Centres (6 months): Targeted at school dropouts and those who did not complete basic education.

2. Vocational Enterprise Institutions: For more structured vocational training.

3. Technical Colleges (State and Federal): For longer-term technical education.

The government has also conducted a labour market gap analysis to ensure that training focuses only on skills that are currently in demand.

Priority areas include CNG conversion and maintenance, renewable energy and solar installation, mechanised farming, plumbing, electrical works, woodwork, welding, livestock production, and other critical trades.

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To improve relevance, the minister said the national skills list has been reduced from 98 to 26 priority skills that align with Nigeria’s current economic needs. Training will also be tailored to the specific needs of each state to avoid producing graduates without job opportunities.

Startup Grants and BOI Soft Loans for TVET Trainees Graduates

On the final stage of the programme, Alausa confirmed that graduates will receive entrepreneurial grants to help them start their own businesses immediately after completing their training.

In addition, beneficiaries who need more capital will be able to access additional funding from the Bank of Industry at single-digit interest rates, following discussions between the Ministry of Education and BOI management.

According to the minister, this combination of training, grants, and access to affordable credit is designed to ensure that TVET graduates do not just acquire skills, but also have the financial support needed to become self-employed, create jobs, and contribute meaningfully to Nigeria’s economy.

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