The study determines the effect of covid-19 loans on youth empowerment in the Chanchaga local government area of Niger state; A study of Niger State from 2020- 2022.The problem investigated revolves around the Global health emergency and its economic and social effects that have disrupted youths in the local government area. The study's objective is to examine the effect of covid-19 loans on youth empowerment in the Chanchaga local government. The data for the study were generated from primary (questionnaires and interviews) and secondary (reports and journals) sources. Questionnaires were distributed to a sample of 113 respondents selected from the 201,429 population of the study through simple random sampling. Data were analysed using descriptive, inferential and thematic statistical tools. Regression analysis tests result showed that covid-19 loan significantly negatively impacts youth empowerment. The result from the interview also indicated that thecovid-19 loan has a significant negative impact on youth empowerment. It was recommended, among others, that financial institutions should approve the loan to the right complete business owner with a certificate of incorporation. This will help sustain the scheme's objective of empowering youths.