The Nation Newspaper

Tag: employment

  • Six Ondo Youth Corps members get scholarship, employment

    SIX Ondo indigenes, who served in other states have been awarded presidential scholarships to  Doctor of Philosophy (Ph.D.) level with automatic employment.

    The six were among over 100 National Youth Service Corps (NYSC) members, who distinguished themselves in the states they were deployed for the compulsory national service.

    At the National Presidential NYSC Honours Award in Abuja, President Muhammad Buhari said the awardees have shown that there were still good things coming out of Nigeria.

    The President, who was represented by his deputy, Prof. Yemi Osinbajo, hailed the brains behind the formation of NYSC, saying it is helping to foster a united Nigeria.

    Addressing the six awardees of Ondo State origin, Governor Oluwarotimi Akeredolu thanked them for being the state’s worthy ambassadors.

    The governor, who was represented by Commissioner for Youth and Sports, Mr. Saka Yusuf Ogunleye, said the youths are a pride of the state.

    “You have distinguished yourselves in your places of primary assignments by contributing to the development of those communities during your service year and have been rewarded.

    “It is high time you come and replicate such at home to make our state a better place. We will be ready to receive you back home.”

    The awardees are: Iluyemi Ayodele from irele Local Government Area; Adejuyigbe Opeyemi from Owo, who studied Masters in Sports and Exercise Medicine at the University of Nottingham; Abiloro Oluwasogo from Akoko South West; Obadele Olayinka from Akoko North East and Botimo Iyabo from Okitipupa.

    The sixth Olamide Adeleye was absent at the ceremony.

    All the awardees expressed their readiness to contribute their quota to the growth of their fatherland.

     

  • ILO to ECOWAS: adopt unified qualification for employment

    The International Labour Organisation (ILO) has called on the Economic Community of West African States (ECOWAS) member countries to adopt a unified qualification framework as a yardstick to curb unemployment.

    ILO Director Mr. Dennis Zulu made the call during a two-day “Technical Regional Workshop” on National Qualification Frameworks (NQFs) in ECOWAS Region, in Abuja, during the week.

    Zulu said adopting the unified framework would create more employment as well as equip workers with both formal and informal skills to enable them work without restrictions in ECOWAS member countries. He said it would also facilitate the dialogue between the private sector and training institutions on curriculum upgrade as well as accommodate training students in different vocations while still in school.

    According to him, training undergraduates while in school would bypass retraining them by the private institution that requires their services after graduation.

    ”We have a lot of unemployed people in ECOWAS countries including Nigeria, so we need to be talking to the private sector that states the qualification they need.

    ”The private sector needs to have input in the curriculum of training institutions that want to train graduates and not the private institutions having to retrain them,’’ Zulu said.

    The National Qualification Frameworks (NQFs) was part of a new initiative to strengthen the recognition of skills and qualifications within and between ECOWAS countries, United Nations Educational, Scientific and Cultural Organisation (UNESCO) and the ECOWAS. A similar regional workshop on NQFs was held in Dakar, Senegal in June to highlight the complexity of conducting certification.

    Other areas discussed were system reforms, the necessary combination of technical, conceptual and policy actions and the importance of regional cooperation as a driver of change.

  • Employment: Reps move to outlaw age disparity

    The House of Representatives has described denial of employment opportunities to Nigerians above the age 28 years as an injustice that should not be encouraged by the Federal Government.

    This followed the second reading of a bill to establish the age discrimination against job seekers in Federal Government Agencies (Eradication) Act, sponsored by Sergius Ogun (PDP, Edo) and Babajimi Benson (APC, Lagos).

    The lawmakers said the federal government has unwittingly breached Section 17 (3) of the Constitution that said no Nigerian should be discriminated against in his or her quest for gainful means of livelihood.

    According to the lawmakers, to peg employment age at 28 years at entry point into Federal Government establishments is detrimental to the growth of the country as it sends a wrong signal to the private sector, a key driver of the economy on the same issue.

    The lawmakers said the labour market is being deliberately saturated by such discriminatory policies.

    One of the sponsors of the bill, Babajimi Benson, noted that the Federal Government recruitment policy of pegging entry point age at 25 is not only discriminatory but inimical to the socio-economic development of this country.

    He said: “What this bill seeks to cure is to create opportunity knowledge, for merit, to be circumspect rather than us using age barriers in government recruitment. This is because using age barrier also discriminates against people who are over 30 years.

    “If we look at Nigerians Bureau of Statistics (NBS) data, it says that about 70 percent of Nigerians are unemployed. It further states that the unemployment bracket ranges between ages 18 and 40 and if you throw up vacancies and you peg the age at 25, then you are discriminating against a whole lot of people out of the job market.”

    On his part, Sergius Ogun, the other sponsor of the bill regretted the fact that it is the majority of Nigerian poor that are adversely affected by the age discrimination against job seekers, saying,

    “This discriminatory practice appears to hold sway, due to the absence of a legislation regulating or prohibiting it. The lack of legislation has led, for many years, to local, multinational and even government agencies, pegging employment age (s) in Nigeria at irrational age brackets”.

    The bill was unanimously passed after it was put to a voice vote by Speaker Yakubu Dogara, who referred it to Committee of Labour, Employment and Productivity for further legislative action.

  • ‘No salary in lieu of notice for fixed tenure employment’

    The National Industrial Court of Nigeria sitting in Yola, the Adamawa State capital, has held that the payment of salary in lieu of notice of disengagement is not required in a fixed tenure employment.

    The presiding judge, Justice Nelson Ogbuanya, made this declaration while delivering judgment in a suit by Alhaji Sule Buba against his former employer, Adamawa State University Consultancy  Services Ltd.

    Buba, through his lawyer, Andrew Maigwi, prayed the court to declare that he is the firm’s employee from July 26, 2006 to May 17, 2013 and, therefore, entitled to his allowances and benefits accrued within the period.

    He prayed for N1,996,181.95, being his unpaid salaries for 35 months; N245,000 being allowance for 28 days in office; N111,531.66 being leave grant for 2010, 2011 and 2012; N57,033.77 being one month salary in lieu of notice of disengagement and N390,360.60 being contract gratuity.

    Buba also sought N3million as general damages for the hardship and trauma he went through due to non-payment of his entitlement; 20 per cent interest on the judgment debt, and cost of the litigation.

    The claimant said he was employed on July 26, 2006 as an administrative officer for an initial two years, and that his appointment was extended for another two years from September 4, 2009 to September 5, 2011.

    He said he later received a December 17, 2010 letter informing him about the company’s temporary closure, that he should stay at home pending when its financial situation improves, and that his outstanding salaries and allowances would be paid.

    The claimant said he was not paid his salaries; rather he received a disengagement letter on May 17, 2013.

    The defendant, through its General Manager, Dr Shehu Haruna, admitted that Buba was employed for a fixed tenure of two years which was renewed for another two years from July 2006 to September 2011.

    The company confirmed owing outstanding salaries and allowances from July 2010 to October 2010 amounting to N228,135, at N57,033.77 per month, but denied Buba’s other claims.

    In his verdict, Justice Ogbuanya held that an employment based on fixed tenure is akin to tenancy of fixed term and does not require notice for termination or salary in lieu of notice thereof, unless expressly provided for in the contract of employment.

    He agreed with the defence counsel Dr J. S. Wafinzida that  the claimant’s extended appointment was deemed terminated by effluxion of time by September 5, 2011, and held that there was no subsisting employment relationship after the expiry of the extension period.

    On whether Buba was entitled to leave grant, contract gratuity and payment for first 28 days in office, Justice Ogbuanya held that there was no provision for them in the appointment letter. He, therefore, dismissed them.

    The judge also held that Buba was not entitled to one-month notice of termination or salary in lieu because there was no provision for it in the contract of employment as such payment is not automatic in fixed tenure employment.

    On damages, Justice Ogbuanya held: “Damages are awarded following a breach. And where no breach is found to occur, no issue of damages should arise.” He added that the claimant did not justify his claim for interest on the judgment sum.

    The judge ordered the defendant to pay Buba the four months salaries which it admitted owing him.

    Justice Ogbuanya held that there was no evidence that Buba was paid his salaries from July 2010 to September 2011, and that the employment letter did not state that no payment would be made during a period of financial difficulty.

    His Lordship said the defendant was obligated to pay for the additionally owed periods falling within the fixed tenure, which is from November 2010 to September 2011, totalling 11 months.

    “On the whole, and for clarity, the claimant’s suit succeeds in part as per the terms of the judgment to the effect that the defendant shall pay to the claimant N228,135.08 being the amount of outstanding salaries of July to October 2010.

    “The defendant shall also additionally pay the claimant  N627,371.47 covering the period of the months from November 2010 to September 2011 as the same monthly subsisting salary of N57,033.77 for 11 months

    “All sums due and ordered to be paid shall be paid within two months of this judgment. Otherwise, any default shall attract 10 per cent interest rate per annum until finally liquidated. Judgment is entered accordingly. I make no order as to cost,” Justice Ogbuanya held.

  • Boosting employment, entrepreneurship

    Through a two-day career workshop in Lagos, Knowledge Exchange Centre (KEC) has changed the game for jobless youths, honing their skills for the market and enhancing their employability. DANIEL ESSIET reports

    Youth unemployment is one of the most pressing challenges facing Nigeria. Over the last decade, the rate of youths between the ages of 15 and 24 in the labour market has been hovering around 30 percent – making it one of the highest in the world.

    Although a young labour force represents a source of great potential, governments at all levels are struggling to create opportunities for them.

    To solve the problem, Knowledge Exchange Centre (KEC) last week held its Career workshop in Lagos.

    The event featured experts who looked at the problem and proffered solutions.

    Ahead of that, the Lagos State Commissioner for Wealth Creation and Employment, Mrs Uzamat Akinbile-Yussuf, said a skilled workforce was central to  economic revival.

    Mrs Akinbile-Yussuf, represented by the Head of Department of Employment of the ministry, Mrs Iyabo Seriki-Bello, reiterated  thegovernment‘s determination to ensure that education and training systems promote the employability skills that young people need.

    She said the ministry was organising a reorientation and employability skills training soon, adding that attendance was a requirement for the Graduate Internship Placement (GIP).

    She explained that GIP was a six-month programme that covers online application, selection and screenings as well as placement into various organisations in the state where interns were expected to translate their knowledge into practice.

    She praised KEC for planning the programme, adding that it was in line with the mandate of the ministry.

    According to her, the programme themed, Winning in the 21st century job market, was critical as youths need knowledge on how to search and secure lasting jobs and relevant skills for future work.

    Such skills, she said include critical thinking, reasoning and creative skills, passion for achievement and success, value, problem-solving and resourcefulness, team spirit, time management and curiosity.

    Centre for Entrepreneurship Knowledge Exchange founder and XL Africa Group Executive Chairman Charles Nwodo Jnr said the vision was to equip young people with entrepreneurial and employability skills.

    Nwodo, represented by Head, Group Business & Marketing Support, and Chizoba Onwuzolum said the KEC was established to fill the knowledge gap in development policy and social studies.

    He said its GIP is an intensive programme designed to equip fresh graduates with relevant workplace skills. The training involves both classroom and experiential learning methods to provide them with theoretical and practical knowledge which is missing in the university curriculum. The aim of the GIP is not only to enable the participants be employed but to acquire the necessary skills in their chosen career fields.

    According to him, KEC programme is supported by a broader strategy to develop career-ready graduates who are marketable in an increasingly competitive employment market.

    KEC Executive Secretary, Maria Glover said Nigeria is faced with growing employment crisis.

    She said: “There are 10 to 12 million youth entrants into the African labour market annually. By 2020,only one in four youths in Africa would find a wage paying job and by which time the population of unemployed youths is expected to rise to 200 million. This population of youth represent a group of extremely brilliant people capable of contributing to the development of the continent.”

    She added: “In Nigeria, the case is not better as 1.9 million graduates enter the already saturated labour market. As at the third quarter of 2017, the labour force population increased to 85.1 million from 83.9 million in the second quarter of the year. The number of unemployed/underemployed people stands at 18 million and 31.8 per cent of this figure constitute unemployed graduates.”

    To ensure that Nigeria has the graduates and skills needed to meet its goal of becoming a high-income, knowledge-based economy, the executive secretary said the organisation was taking significant steps to produce “industry ready” graduates through an approach involving greater career awareness, industry exposure, and enhancing skills for employability.

    She expressed concern that graduates are ill-prepared, urging them to use the forum to gain new knowledge and skills.

    According to her, the organisation’s Graduate Advancement Programme (GAP) is aimed at helping youths gain employment.

    She said 400 people have either acquired job skills or built a business after graduating from KEC.

    She explained that KEC works with partners on employment and entrepreneurs.

    Having etched their names as successful business people and entrepreneurs in their industries, the panelists shared their journey to pursuing their passions and how they overcame the challenges head on to achieve their goals.

    Aside from hearing the remarkable stories of the panelists, participants in attendance had the opportunity to engage with the panelists during the question and answer session which proved to be both inspiring and insightful.

    Participants of the programme are guided on how to write resumes, send job applications, and how to conduct themselves during interviews. There was a motivational talk for the participants.

    One of the beneficiaries is Adeyemi Seun, a graduate of Quantity Surveying of the Federal University of Technology, Akure, Ondo State.

    He praised KEC for helping to alleviate poverty and create jobs for youths.

    Since graduation, Seun had challenges on getting a job. He felt hopeless. But after attending the workshop, he told The Nation that programme helped him assess his weaknesses and why he had been successful in his job hunts.

    He said such programmes have a key role in helping graduates find jobs.

    He told The Nation he was encouraged to take advantage of job opportunities.

    Another beneficiary and Caleb University’s Microbiology graduate, Miss Fiyin Olaniyan, said she was prepared to embrace and embark on entrepreneurship once she get a job and work for some years.

    She said the training came at the right time to enable her to be self-employed.

    For watchers, Lagos is experiencing a staggering youth boom, with more than half of the 20million people in the state who are under 20. This is a huge proportion of young people who have the potential to significantly boost the prosperity, stability, and well-being and create a future in which they will thrive.

  • Bejide to lift embargo on employment

    A governorship aspirant of the Social Democratic Party (SDP), Ambassador Dare Bejide, has promised to lift the embargo placed on employment of new workers, if elected.

    Bejide, a former Secretary to the State Government (SSG), said he will create job opportunities to teeming youths in the civil service.

    The aspirant who spoke when paid a courtesy visit to the SDP leadership at the party secretariat, along Iyin Road, Basiri, Ado-Ekiti, also promised to establish skills acquisition centres in the three senatorial districts to promote vocational education and turn job seekers to employers of labour.

    He also promised to pay all arrears of salaries and pensions owed workers and retirees by the Ayo Fayose administration, if he wins the election.

    The former Nigeria High Commissioner to Canada claimed that both the People’s Democratic Party (PDP) and the All Progressives Congress (APC) have disappointed Ekiti people. He urged voters to give their votes to the SDP.

    He commended former military President Ibrahim Babangida for supporting the SDP, saying the statesman’s gesture has made the party a credible platform to be voted for.

    Bejide urged the leadership to give the ticket to him, because of his experiences in party and government’s administrations, as well as having a strong political network that can defeat the PDP in Ekiti. The SDP Chairman, Dr Dele Ekunola, said the party was determined to take over Ekiti and provide good governance to the people.

  • Edo reopens job portal March 1

    Edo reopens job portal March 1

    Edo State Governor, Mr. Godwin Obaseki, has disclosed that the state government is finalising arrangements to reopen the EdoJobs portal on March 1, 2018.

    In a statement on Thursday, in Benin City, by the Special Adviser to the Governor on Media and Communication Strategy, Mr Crusoe Osagie, the governor said the reopening of the portal would extend the window of opportunities for more youths to be captured in the state’s jobs database.

    The governor reassured youths in the state of his administration’s commitment to fulfil his campaign promise of creating 200,000 jobs for the teeming unemployed youths.

    According to Obaseki, “The reopening of the job portal is to capture more youths in the state, who are to undergo employability and capacity building training. After their training, these youths will be matched with employers of labours, who have indicated interest in employing young people.

    “It is clear that we have a crisis of youth unemployment and we are making frantic efforts to address it. There are various options the applicants on the jobs portal can choose from.

    The EdoJobs initiative trained a batch of 500 youths late last year, and also supplied over 4,000 people trained by the National Directorate of Employment (NDE) this year.

    EdoJobs is an employment initiative of Godwin Obaseki-led administration to train and retrain graduates with post-secondary school certificates on business writing, workplace ethics, problem-solving skills, emotional intelligence and managing conflicts, among others. The initiative gives applicants the opportunity for job placements in companies across the state.

    The portal provides the state government with data of applicants, which it uses for planning skills training for the job seekers in collaboration with companies requiring skilled labour.

     

  • Exploring employment and business opportunities in agric

    Agbelowo Cooperative Agricultural Multipurpose Society Limited (ACAMSL) has organised a business opportunities seminar in Ikeja, Lagos. The focus is to explore how Nigerians can secure their livelihoods through agricultural enterprises. DANIEL ESSIET reports.

    The global unemployment rate will increase to 5.8 percent representing 3.4 million people. The 3.4 million will bring the total global unemployment to 201.1 million people, according to the World Employment and Social Outlook-Trends 2017 report recently released by the International Labor Organization. This gloomy picture is attributed to the weak economic growth.

    However, expert believes the future is in Agriculture. For this reason, Agbelowo Cooperative Agricultural Multipurpose Society Limited (ACAMSL) held its seminar in Ikeja, Lagos to sensitise Nigerians on the challenges and the opportunities in the sector and had as its theme, ‘Understanding the Agricultural Value Chain.’

    President of ACAMSL, Mr Dele Owolowo said t agriculture is a key factor in making economic growth inclusive and in reducing poverty incidence in the country, stressing the need to pursue large-scale activities in the agribusiness sector . He said Nigeria despite dubbed as “the land of promise” and a“food basket has not maximized agricultural potential despite its rich biodiversity, conducive climate and fertile soil.

    According to him ,the projection for the agribusiness sector was positive in the long term given the country’s potential and the readiness of the private sector to invest in foo d production, although backyard farming and infrastructure problems continue to hamper growth of the sector which remains “uncompetitive.”

    He blamed the situation on lack of mechanised agriculture and poor funding of farmers by banks on the dearth of research, agric engineers and economists.

    He also lamented poor power supply as a factor that has killed agro-allied industries in the country as it has raised the cost of production.

    Owolowo said the ACAMSL was partnering with other cooperatives even though his organisation has preference for soybeans.

    In his keynote presentation, Mr Olubusola Falola of the Institute of Agricultural Research and Training, (IAR&T), Ibadan called for the re-establishment of marketing boards by the government to buy up excess produce from farmers, urging corporate bodies to step in where government fails.

    Mr Falola who educated the cooperative members on the production of soybeans stated that the IAR&T has a seeds store where farmers could access good and viable seeds for better productivity.

    In his presentation, Mr Chiaka Ikechukwu of LAPO Microfinance Bank revealed that the bank works with over 38,000 farmers across 32 states in the country.

    He stated that the bank offers farmers loans at a 5 per cent monthly reducing balance interest rate.

    Team Leader, Peters Poultry Town, Mr Yomi Omosanya revealed that his organisation, is a cashless community of farmers and operators in the agriculture value chain, adding that they have developed a Poultry Caring House, a poultry management software.

    He added that the organisation produces 25 million eggs per day, which represents 17.6 per cent of daily egg requirements for Nigeria’s South-West region.

    The President, Cornerstone Cooperative Society, Mr Kayode Adeyeye called for solutions to problems with land ownership and rentage such as land grabbers.

    He advised farmers to study the type of loans and banks they need before applying for such loans.

    In his presentation, Mr Chiaka Ikechukwu of LAPO Microfinance Bank revealed that the bank works with over 38,000 farmers across 32 states in the country.

    He stated that the bank offers farmers loans at a 5 per cent monthly reducing balance interest rate.

    Team Leader, Peters Poultry Town, Mr Yomi Omosanya revealed that his organisation, is a cashless community of farmers and operators in the agriculture value chain, adding that they have developed a Poultry Caring House, a poultry management software.

    He added that the organisation produces 25 million eggs per day, which represents 17.6 per cent of daily egg requirements for Nigeria’s South-West region.

    The President, Cornerstone Cooperative Society, Mr Kayode Adeyeye called for solutions to problems with land ownership and rentage such as land grabbers.

    He advised farmers to study the type of loans and banks they need before applying for such loans.

  • ‘Employment Trust Fund not for jamboree’

    ‘Employment Trust Fund not for jamboree’

    The Executive Secretary, Lagos State Employment Trust Fund, Mr. Akintunde Oyebode, in this chat with MUYIWA LUCAS, says the government’s purpose for the scheme is gradually coming to fruition.

    The Lagos State Employment Trust Fund (LSETF)appears good. But people say it is difficult to access. Why is this so? Is there no way to access the fund?

    First, if I will be honest, the state has limited resources. This means that the most resilient applicants will scale through because we cannot support everyone. What we are committed to is that the process is transparent and unbiased.

    The point is, whatever pain Mr. A is going through to apply, Mr. B is also going through same. There is no preferential treatment for anybody. But from next year the process will be better structured because there will now be windows. What we have done this year is because there is a need to immediately roll out the scheme and reach out to as many people as possible. The loan is on a rolling basis, so every month we are approving applications. Going forward, we will be having windows- the application will close on a certain day and if you don’t apply then, it means you can’t apply for that quarter. But in terms of the requirements, it won’t change. We feel that we are lending without collateral and people must also meet at a certain level. This is not a grant.

     Is there any mechanism to monitor beneficiaries of your loans?

     Yes. We do some monitoring and we work with partner banks. It is a combination of both microfinance and commercial banks; so they do a lot of collections on our behalf and the monitoring. We also have partners, who from time to time go out on our behalf to monitor the business performance. So, we monitor in two ways- we do our own independently and then we have our bank partners, who help us collect and monitor.

    If someone takes N5million and pays back successfully, is it possible for him to get N10million?

    No. We have a regulatory limit. The best the person can do is come back for the same N5million, but where we really want to take business to is that we give a N100, 000, you pay back, we give you half a million, you pay back, we raise it to a million and, ultimately, to N5milion. Now for business that needs more, we now structure an introduction when we say for example, we send them to institutions like the Bank of Industry. We have limited resources and to reach many people that is why we peg it at N5m.

    There is the belief that the scheme is for All Progressive Congress (APC) members only. How true is this?

     To be honest people saying that are only mischievous. That kind of comments does not bother me again. Anyone, who has been through our process, will recognise that this is not based on party, religious, or ethnic affiliations. So, it is a straight forward process and there is a marking scheme- you either pass or you don’t. After that there are some requirements you have to meet. When people say that I always tell them that but you have not even tested the process. You are doing yourself some bad if you sit at home and assume that it is for political affiliations. I have been to 20 local governments and I have said it on radio, press interviews and the likes, and we say to you come and test the process if is different from what we said then go and embarrass us. We have a whistle blower hotline that is managed by KPMG.

    If you look at the ratio of beneficiaries there are Igbo, Yoruba and some Hausa and Southsouth and if you look at our team, we don’t care where you are from as long as you are competent and live in Lagos. There is no Yoruba, Igbo, Hausa or party agenda, but of course, there will always be doubting Thomases.

    How long have you run the scheme? I mean a kind of appraisal? Please tell the whole world how far you have gone?

    As we speak, we wrote our first loan in January-February; from October we will be commissioning an independent inter assessments exercise for an independent body to come and say this is where people you helped are; before you come and this is where they are now; this is the impact we have seen on the programme; these are things we think you can do differently.

    So, we expect that by next quarter of next year we should have that report ready. It will also be useful because assessing the impact is what helps us to identify what we need to change. So, we are starting the exercise this year and we hope by first quarter of next year it will be ready for independent opinion, review and critics.

    How good is the repayment?

    Impressive. If we get similar or better repayment compare to banks, it will be a success because that will mean that we are lending to the right people. In terms of our loses today or what I will call our credit loses, it is still under 10 percent- it is about 5.5 per cent, which is pretty low. But we are not resting on that, we have to continue ensuring that we find the right people and we also drive out how we can collect from those people. One of the issues we face is that of willingness than ability and so, knowing that when they borrow they will be willing to repay and able to repay, that’s what it takes.

    So, it is finding those kind of people and ensuring that when they are unwilling, you have the collection mechanism tighten around them to show them that you can collect adequately. But for some people, who are defaulting on their loan now, some will be taken a set up on them, some will be charged to court to show an example that when you borrow from us, it is not a jamboree money because if you take a loan from us and you don’t repay, others will feel like why should they pay. So, we want to show people that there is a consequence for not repaying our loans, despite the low defaults rate.

    Of all Lagos State programmes, I think this particular one needs to be shown to the world because it has a kind of direct impact on the people. What do you think?

    That is it, and I think that is what we say with governance. One of the challenges is how does government impact the people. So, in some instances, when you can take much longer you will be able to see that in some cases like ours, if done correctly, you can see the impact in one to three years period. So, the government ‘s aim and the governor’s view is, the only way the government is not going to employ all those people coming out from university and secondary schools, who wont even be employed by even the large corporate, but primarily the small and medium size enterprises. Apart from the impact on the borrower, there is also the added impact of being able to create more jobs and employ more people.

    So far, how many have benefited from your scheme and what is the interest rate being charged?

    The interest rate is five per cent per year. In terms of numbers of people, we have approved loans to approximately 6,500 people, but the actual disbursed loan will be around 4,200 people . So, today 4,200 people have actually received their loans and put them into their businesses

    Do you have an insurance scheme for the loan?

     There is nowhere you can get a 100 per cent repayment on loan in Nigeria or anywhere in the world.  Nobody also assure credit risk, the insurance you get is on personal life, fire, burglary and theft or the person dies or permanent disability and he is unable to run the business.

    We insure against that; we insure against theft, burglary or property and the equipment. We do that type of insurance. We have some insurance that if something happens to you or the business premises, we will be able to recover money and we also give you the option to increase it if you want. So, if you want to increase the sum insured, that is up to you. But what we insure is up to the loan we give to you, anything in excess of that is now between you and the insurer, but the real point is and I think I have made that  clear, what determines success or failure is the selection process. So, if you introduce nepotism and sentiment in selecting people you have a higher rate of losing money because that information have a way of going out. People will know that if you bribe someone with N50,000 you will get the loan so if you pay someone that amount to get a loan, why will you pay back?

    By the time you complete the first year, how many people do you hope to have empowered?

    That is tricky to say. At this stage, we have done 6,000 loans maybe it will have gotten to 10,000-12,000 and this is not all we are doing. It is not just lending, the loan programme is just one of several programmes. We are doing some work with the UNDP at the moment where we are providing technical and vocational training to approximately to 16,000 people over the next two years and we are not providing the training for the sake of just training, but to at least, make sure 75 per cent of those people are placed in jobs.

    So, when you are through with the programme we place you on jobs. We are already talking to private sector employers to ask what are their needs, what skills do you need and what kind of professional level do you need? This is because when we train those people to that standard, they will automatically employ them. That is a completely different programme, that is not a loan programme, but an employee programme where another 16,000 people should be put to work over next two years.

    So, it is not a one-sided programme. And if you look at all the work going on around Yaba today, the eco-system is developing on its own without the government support, this is where the Kongas, the Jumia, Iroroko, and others have come out from- excellent business not only employing hundreds of people, but creating a platform for thousands of people to do their business.

    Just a passing short, you give loan without collateral? How do you secure them?

    You know the interesting thing is your first level of security is the quality of the person you are. If you give me a house today to collaterise your loan, how long do you think it will take me to recover the loan? If that loan goes bad how long do you think it will take to recover it? So, with our current state, we are in court for minimum of four years. Collaterals do not give you confidence. Collateral is only important at the point when the person has failed to pay. If you able to pick the right borrower, you don’t even need collaterals but one of the things we have done is that we will use social collateral. So, we ask these people to provide us with guarantors, who we can hold in the event if they don’t pay. We also have a right of setoff such that if they don’t pay we can use their BVN to check when they have money and set it up against their balances. Of course, that is the last resort position because to set it up we need a garnishee order, but we have that ability.

  • ‘LSETF has impacted on employment, job creation’

    The Executive Secretary of the Lagos State Employment Trust Fund (LSETF), Mr. Akintunde Oyebode, has said in just one year of operation of the Fund, Lagosians have been empowered to start up their own business and also be employers of labour. This, he said, is in line with the vision of the state government while establishing the Fund on March 5, laast year.

    Oyebode, who was on a courtesy call to The Nation office in Lagos at the weekend, disclosed that in its short period of operation so far, approval has been given for 6, 500 loans, but the actual disbursed loans is to about 4, 200 people, at five percent interest rate.

    He further revealed that compliance to repayment has been encouraging, considering that the Fund’s credit losses currently stand at 5.5 percent, a figure he termed “still okay.”

    This low level, Oyebode said, is as a result of the stringent due diligence the administrators of the Fund carries out on applicants before granting them loans. He said that although no collateral is demanded from applicants before granting them loans, however, the conditions required ensures that beneficiaries of the loan cannot elope with the money as their guarantors are usually people of good standing in the society, who would not want their integrity damaged.

    “Physical collateral doesn’t give confidence that there won’t be default, but getting credible people to stand for applicant is more effective; this is evident in the level of compliance to repayment of loans by the beneficiaries,” Oyebode said.  He however said the Fund administrators are not resting on their oars as they are still working hard to recover all outstanding loans.

    As part of efforts towards recovering the loans, he said defaulters are being charged to court. This, he explained, is to let beneficiaries and the public know that the LSETF facility is not ‘jamboree money’ and to let people know that there is a consequence for not paying back.

    The Executive secretary said apart from the impact of this fund on the borrower, there is also the impact of being able to create more jobs and employment for more people. This, he referred to, as “the social impact on the society.”

    He further said that for beneficiaries, whose businesses have grown beyond the N5 million limit, the Fund can grant, the LSETF could assist by introducing them to another layer of financing from other financial institutions to source for credit based on the fact that they were forthright in their loan repayment.