ENTERPRISE54 – Attention all aspiring entrepreneurs! As part of events to mark its 25th anniversary, The Chair Center Group has partnered the Lagos State Government to host Ignite Ideas Contest which is aimed at granting N100,000 interest-free loans to 1,100 entrepreneurs for the realization of their business ideas.

Celebrated entrepreneur and founder of The Chair Group, Mrs. Ibukun Awosika will be giving 100 great business ideas a seed debt capital of N100,000 while the remaining 1000 ideas will receive N100,000 seed debt capital from the state government, both, via First Bank Micro Finance Bank.

Interested persons have to apply here by December 20th 2014 after which a screening process would be carried out and selected applicants would be contacted.

The N100,000 loan will be interest free for a 24 month tenure. After the first 6 months, monthly repayments of N5, 000 only will be expected for 18 months until the capital is fully repaid.

I believe this is a viable model as it requires recipients to be accountable and build financial discipline – a key requirement to business success that is largely lacking in our society. The first six months also gives the entrepreneur time to make mistakes, learn and build a viable business model before starting to make repayment. Mrs Ibukun Awosika also disclosed, after the 2-year period, entrepreneurs with health financials and good debt repayment would have access to robust loans from First Bank itself based on their credit data. But what happens to businesses that unfortunately default on loan repayment? Would a collateral of theirs be confiscated? Would collateral be required at all to access these loans? That, we’re not clear about. There are no indications from the organizers whether or not the loan is collateral-free.

Requirements for Applicants are:

Applicants must be of Nigeria nationality

Applicants must not be below 18 years of Age. Failure to verify age will result in the application being declined.

Applications must articulate a specific business problem to solve or opportunity to address. The ideas must be original, address a clear market gap.

Applicants must be clear on the benefits from the prize money and the viability of idea must be established.

Employees of The Chair Centre Group, Digital Jewels Limited, AGDC etc and their families are not eligible to apply.