In March 6, 2014, I wrote a piece on this page titled “Has the NYSC run its course?” where I inquired if the National Youth Service Corp (NYSC) is still relevant to 21st century Nigeria. At the end, I concluded that the scheme still has a lot to offer Nigeria. I made that statement after reviewing what the then new Director-General; Brigadier-General Johnson Olawumi was doing few months into his tenure.
I wrote; “Two weeks ago, the new Director-General, Brigadier-General Johnson Olawumi, at a forum, unfolded a four-point agenda to directors, deputy directors, state coordinators and camp directors of the 36 states of the federation. It includes: improving the service content of NYSC for national development; enhancing the welfare and safety of corps members and staff; expanding partnership for greater impact, funding and support; and increasing the visibility and relevance of the scheme.
“Olawumi wondered why the structures and methods of 1973 are still being used “to drive a 21st century organisation that manages the most vibrant and dynamic segment of the Nigerian society.” Some of the questions he posed at the session were: “What can the NYSC do better to recapture the goodwill of the critical stakeholders? How fast can its staff and management work to regain the trust of both the Nigerian parents and the young men and women that are annually enlisted in the programme? Should the scheme wait for changes to be imposed upon it from outside, with attendant consequences?
“I was made to understand that barely two months in office, the new DG has already met with the Managing Director of the Bank of Industry with a view to building a partnership for the empowerment of corps members, he has visited the Executive Secretary of the National Health Insurance Scheme (NHIS) in the bid to ensure health insurance coverage for corps members and he wants to meet the INEC chairman on a broad range of issues concerning the security of corps members when they are deployed for election management. These – I was also told – are besides several other initiatives he is already working on and planning to announce soon.”
To show that these visits were not mere formalities, they yielded, and are still yielding, the much desired fruits – fruits that should becommended. Without doubt, one issue that has given governments all over the world sleepless nights is the issue of unemployment and Nigeria has been grappling with this for decades. So, whenever I see any initiative that would result in job creation I’m always excited.
No organization – in my opinion – should feel more concerned about graduate unemployment than the NYSC and I believe the scheme put its best foot forwardas the DG’s effort which started last year has now paid off with its recent partnership withthe Bank of Industry (BoI). It has led to the creation of aN2 billion Graduate Entrepreneurship Fund (GEF).
It is no coincidence that the NYSC DG found a willing partner in Mr. Rasheed Olaoluwa who, since his assumption of the leadership of the BoI,has taken what was hitherto perceived as a ‘dead’ bank to commendable heights. He believed – like most Nigerians do – that job creation has not kept pace with the growth in the working age population.
Though like a drop in the ocean, this initiative will at least give close to a thousand ex-corps members a positive direction in charting their future. There are few jobs out there and the more we learn to tap into the creative abilities of our youths, the better it will be for them and the entire nation.
The NYSC Directorate had last year put in place a template in promoting an entrepreneurial mindset among NYSC members through its Skills Acquisition and Entrepreneurship Development (SAED) initiative. In tackling unemployment among youth, innovative approach is required, like this initiative intend doing. Its strategy is anchored on identifying the innate talents of the young graduates as soon as they leave school. It will then build their capacities for self-reliance, and also empower them to establish their own businesses, thereby creating jobs not just for themselves, but also for other youths that they may employ and their businesses develop.
This – I hope – will not be turned into an initiative where “free” money or “your share of the national cake” is given to individuals in the name of job creation. From what I have gathered so far, this is a departure from past initiatives.
Under the fund, therewill be selection and screening of 1,000 NYSC members that will participate in the capacity building process through an online business idea competition. This will enable them to develop their own bankable business plans, which will form the basis for loan consideration. The loan which falls withinmedium to long-term loans will be offered at single digit interest rateswhich will be undertaken in the six geopolitical zones of the country and Lagos State.
Each beneficiary under the GEF can access a minimum loan of N500,000 and a maximum of N2 million for the procurement of machinery and equipment as well as for working capital, at an interest rate of nine per cent, with a loan tenor of three to five years inclusive of six months moratorium.
However, given the inflation rate, I would’ve preferred the loan to be within the range of N2 to 5 million and an interest rate of between three to five per cent. Nonetheless, it is a positive start if viewed against the backdrop that each year, about 1.8 million young Nigerians enter the already saturated labour market where over 60 per cent of them are unemployed.
I like the selection process for one simple reason; it will instill in our youths both entrepreneurial and managerial capacities that are needed far beyond the realm of business. By sitting down to think and conceptualize a business plan, beneficiaries will know the importance of making good use of the funds they borrow. The business plan is a strong business tool, especially for the small business owner because it provides every detail about the business and allows the would be entrepreneur to review the hard, clear facts that are needed to make strong and successful business decisions, even if it means starting the business over.
By sitting down and conceptualizing they would know the purpose and importance of a business plan. They will have to define what the business is or what it intends to be over time. Clarifying the purpose and direction of their business allows them to understand what needs to be done for forward movement. Clarifying can consist of a simple description of their businesses and its products or services, or it can specify the exact product lines and services they’ll offer, as well as a detailed description of their ideal customer.
Since businesses evolve and adapt over time, I hope they were effectively taught that factoring future growth and direction into their business plan can be an effective way to plan for changes in the market, growing or slowing trends, and new innovations or directions to take as the company grows. Clarifying direction in the business plan willenable them to know where they’re starting and their future vision.
Most importantly, the development of a comprehensive business plan shows whether or not a business has the potential to make a profit. By putting statistics, facts, figures and detailed plans in writing, a new business has a better chance of attracting investors to provide the capital needed for getting started. Equally important is repaying the loan so that others can benefit.
Entrepreneurship is a key driver of any economy. Wealth and majority of jobs are created by small businesses started by entrepreneurially minded individuals, many of whom go on to create big businesses. People exposed to entrepreneurship frequently express that they have more opportunity to exercise creative freedoms, higher self-esteems, and an overall greater sense of control over their own lives. As a result, a robust entrepreneurial culture will maximize individual and collective economic and social success on a local and national scale.
This is why I’d like to commend and encourage Brig-Gen Olawumi to continue to explore other credible avenues to open up opportunities for corps members before his tenure runs out. He should also endeavor to put in place rock solid structures which an incoming DG will find robust not to tinker with.
