Business

Empowering Nigeria’s Youth: Nestlé’s Commitment to Financial Freedom Through Training and Sports Sponsorship

By Godwin Anyebe

Small and Medium Enterprises (SMEs) contribute significantly to Nigeria’s economy, comprising around 50% of GDP and providing over 80% of employment. Yet, despite their importance, SMEs often face challenges accessing finance, which hinders growth and development. This difficulty underscores the need for strategic support, not only from financial institutions but also from organizations committed to empowering future business leaders.

Nestlé Nigeria stands out in its dedication to bridging the gap for Nigerian youth by providing employability training and sponsoring sports initiatives, underscoring its commitment to fostering financial independence among young people. Through various programs, including the Nestlé Technical Training Centre (TTC) and sports sponsorships like the annual Milo Basketball Championship, Nestlé aims to build a skilled, financially empowered youth population capable of contributing meaningfully to the economy.

Financial Hurdles Facing Nigerian SMEs

For many SMEs in Nigeria, accessing finance remains one of their greatest challenges. Traditional banks often label these businesses as high-risk, demanding substantial collateral and established credit histories that many SMEs cannot provide. Consequently, many entrepreneurs rely on personal savings or informal loans, which often come with high interest rates. Formal credit is rare, with the World Bank estimating that only about 5% of Nigerian SMEs have access to it.

Moreover, Nigeria’s banking sector’s high lending rates—often exceeding 20%—pose further challenges for SMEs seeking funds for expansion or innovation. Economic instability and inflation only complicate this scenario, leading financial institutions to limit loans to businesses considered high-risk.

Exploring Alternative Financing for SMEs

While formal bank loans remain inaccessible to many, alternative financing options are emerging to support Nigeria’s SMEs:
• Microfinance Institutions (MFIs): Many MFIs focus on providing accessible loans to SMEs, targeting the unbanked population with lower interest rates and more flexible terms.

• Venture Capital (VC) and Private Equity (PE): Increased investment in the African market allows innovative SMEs, especially in tech, to attract funding.

• Crowdfunding: Platforms like Kickstarter and NaijaFund enable SMEs to access capital while simultaneously generating market interest.

• Government Initiatives: Programs like NEXIM Bank and the SME Credit Guarantee Scheme support SMEs, although their success depends on effective implementation.

FinTech and Financial Inclusion

Financial technology (FinTech) companies are transforming the financing landscape for Nigerian SMEs. Platforms like Paystack and Flutterwave streamline payments and create ecosystems to help SMEs access loans and other services. Additionally, peer-to-peer lending platforms enable individuals to lend directly to SMEs, circumventing traditional banking intermediaries.

Nestlé’s Commitment to Youth Empowerment

Nestlé Nigeria’s youth empowerment efforts reflect its recognition of these economic challenges. Since 2011, the Nestlé Technical Training Centre (TTC) has offered an 18-month program for young Nigerians to gain hands-on skills in machining, electrical operations, instrumentation, and automation. This training culminates in a London City and Guilds certification, with top graduates undergoing a three-month internship in Switzerland, sponsored by the Swiss Embassy.

In 2024, the TTC graduated 10 new trainees, increasing the Agbara TTC’s alumni to over 200. Remarkably, 97% of these graduates have been employed by Nestlé Nigeria, attesting to the program’s impact on employability.

Graduating in the second stream of the seventh batch of the programme these young men and women completed an intensive 18-month programme that blends theoretical and practical engineering education. This rigorous training, which culminates in the City and Guilds of London Technicians’ Certification, significantly enhances the employability of the participants.

Beyond the Technical Training Centre, Nestlé’s dedication to youth empowerment is also reflected in its broader youth engagement platform – Nestlé Needs Youths Launched in 2013, this initiative aims to help young people access economic opportunities, focusing on four pillars: getting them hired, skilled, supported, and providing them with more opportunities. Through various programmes under this banner, Nestlé reaches an average of 25,000 youths annually.

Under Nestle Needs YOUth programme, the Company is aimed at helping 10 million young people around the world access economic opportunities by 2030 through employment and employability agripreneurship and entrepreneurship.

Nestle believes that young people are at the heart of regeneration and our future. They are the entrepreneurs and innovators of tomorrow and the next generation of farmers who will feed our growing population in sustainable ways. They help their communities thrive and their fresh ideas, diverse perspectives and energy benefit Nestlé. By giving them the skills, knowledge and opportunities to succeed, they can improve personal economic circumstances as well as the social development in their communities.

Through The Global Alliance for YOUth initiative, Nestle is working with other organizations to help millions of young people around the world find a job, thrive in the workplace or start a business. Led by Nestlé, the alliance of 25 like-minded companies provides training, nurtures young entrepreneurs and offers first job opportunities.

Under apprenticeship and traineeship opportunities, the number of youths that benefited has been remarkable thus: In 2021 (11,598); 2022 (11,495) and 2023 (10,807). Between 2021 and 2023, findings showed that over four million young people were impacted by Nestle through digital events that focus on upskilling young people and making them more employable.

That is not all, in 2023, 8,464 young farmers were trained through Nestle Agripreneurship programme. Since 2017, over 10 million youths around the world have been empowered with access to economic opportunities, while about 90,000 entrepreneurs have received some basic but tangible benefits from Nestle.

Speaking at the TTC graduation, Mr. Wassim Elhusseini, Managing Director/CEO of Nestlé Nigeria, spoke Nestle is committed to empowering the young people.

He said, “Our investment in upskilling these bright young minds over the last 13 years not only reflects our firm belief in the potential of the next generation but our commitment to enabling them to thrive.

“By bridging the technical skills gap in the industry, we are not only enhancing the employability of our youth but also empowering them to achieve financial independence, enabling them to contribute meaningfully to their communities and society at large. This is one of the ways we are creating shared value.”

Highlighting the significance of these efforts, Mr. Shakiru Lawal, the Country Human Resources Manager at Nestlé Nigeria, stated, “We are playing our part to cushion the impact of economic challenges on the youth and prepare them for the future. Some of these initiatives include our Nesternship Programme , Nestlé Youth Development Programme, and our active participation in the Alliance for Youth Nigeria initiative. In all, we reach over 25,000 youth annually.”

He added that all graduates in this batch had also been employed by Nestlé Nigeria. “They have earned their place through dedication and excellence, and we are thrilled to welcome them to the Nestlé family.”

In his address, delivered by the Director of State Schools Sports, Comrade Rotimi Okeleye Olarotimi, the State Commissioner for Education, Science and Technology, Professor Abayomi Adelaja Arigbabu, commended the Nestlé Technical Training Centre for its commitment to empowering young minds.

He also applauded the efforts of the graduates: “To the graduates, I offer my heartfelt congratulations to you. Your hard work, dedication, and perseverance have paid off, and you should be proud of your achievements. The skills and training you have acquired in the Nestlé Technical Training Centre is a powerful tool that can shape your future and open doors to new possibilities. I implore you to strive for excellence in all your endeavours and make a positive impact in your chosen field.”

Also present at the ceremony were His Excellency, the Alagbara of Agbara, Oba Lukman Jayeola Agunbiade, and representatives from the Nigeria Employers Consultative Association (NECA, and the Manufacturers Association of Nigeria (MAN), whose unwavering support has been instrumental to the success of the Technical Training Programme.

Apart from other initiatives Nestle have been using to empower the youth, I have discovered that sports sponsorships have contributed significantly to empowering the youth.

Nestlé Nigeria, in the past two decades, has been at the forefront of grassroots sports development in Nigeria through the Nestlé MILO Secondary Schools’ Basketball Championship which has helped significantly in shaping a healthier and happier generation of Nigerians by encouraging them to participate in sporting activities.

Apart from encouraging the youth to participate in sporting activities, MILO Basketball Championship also provides a platform to help children and youth imbibe values that set the right foundation for their future such as grit – perseverance through hardship, courage to overcome fear, ability to work in a team, self-belief/confidence, respect, and leadership ability.

The Role of Sports and Broader Initiatives

Nestlé’s Milo Basketball Championship exemplifies its support for youth development through sports, fostering teamwork, discipline, and leadership—skills critical for future business success. Beyond TTC, the Nestlé Needs Youth initiative, launched in 2013, targets over 25,000 young Nigerians annually through programs aimed at enhancing employability and entrepreneurship. Globally, Nestlé aims to provide 10 million young people access to economic opportunities by 2030.

The Path Forward for Nigerian SMEs and Youth

To strengthen Nigeria’s SME sector and support youth in achieving financial freedom, concerted efforts are essential:
• Policy Reforms: Government incentives for banks to reduce lending rates and streamline regulations can make financing more accessible to SMEs.

• Public-Private Partnerships: Collaboration among government, private sector, and financial institutions can enhance funding and support capacity-building programs.

• Encouraging Innovation: Supporting SMEs with grants for research and development fosters competition on a global scale.

• Financial Literacy and Awareness Campaigns: Increasing awareness of available financing options and providing financial literacy programs help SMEs make informed funding decisions.

Nestlé’s Vision for Shared Value

Nestlé Nigeria’s CEO, Mr. Wassim Elhusseini, emphasizes the company’s long-standing commitment to upskilling young Nigerians. “Our investment in developing these bright young minds reflects our belief in their potential to shape Nigeria’s future,” he said at the recent TTC graduation. Country Human Resources Manager, Mr. Shakiru Lawal, echoed this sentiment, stressing that these initiatives empower youth to thrive professionally and financially.

Nestlé’s continued support for youth empowerment exemplifies a holistic approach to bridging Nigeria’s financing gap. Through training, mentorship, and funding opportunities, Nestlé is enabling Nigerian youth to overcome economic barriers and thrive in a competitive market. By equipping young people with the skills to succeed, Nestlé not only enhances their economic potential but also fosters the growth of a robust SME sector crucial for Nigeria’s economic prosperity.

Leave a Comment

Your email address will not be published. Required fields are marked *

*