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N75bn Youth Fund: Experts call for proper legal framework for sustainability

N75bn Youth Fund: Experts call for proper legal framework for sustainability

Investment experts have advised the Federal Government to establish a legal framework for the recently approved N75b Nigerian Youth Investment Fund, for sustainability. They also warned against setting impossible huddles for accessing the funds
Tagged “The Nigerian Youth Investment Fund (NYIF)”, the minister of youth and sports development, Sunday Dare had announced the establishment of the fund, after the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari, last week.
But investment experts called for framework that would ensure accountability and transparency, including the setting up of a broad- based team of stakeholders to monitor its implementation.

This is also as the source within the ministry of youth and sports development told BusinessDay at the weekend that the guidelines for accessing the fund would be released in two weeks’ time.
The fund, which is a three-year initiative, according to the experts, may have sustainability challenges unless a proper legal framework and monitoring was put in place.

The investments experts are also concerned that the disbursement of the funds may suffer same fate as the N50 billion Targeted Credit Facility (TCF) set up in the wake of the disruptive effect of the coronavirus global pandemic.
The TCF fund had targeted households with verifiable evidence of livelihood adversely impacted by the coronavirus outbreak, existing enterprises with verifiable evidence of business activities also affected by the pandemic.

The Central Bank of Nigeria (CBN) in the guidelines for accessing funds under the TCF listed a step by step procedure to include submission of an application to “NIRSAL MFB, which must, among others, contain BVN number, business registration (where applicable) and business plan with clear evidence of the opportunity or adverse impact as a result of Covid-19 pandemic”
John Airohi, head of Jebenro Engineering Consortium, described the government’s effort as positive development for strengthening youth empowerment, but expressed fears that “the funds may not get to the targeted youths”

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“You know that the TCF was set up as a stimulus package to support households and micro, small and medium enterprises (MSMEs) that are affected by the coronavirus pandemic, but records show that not much has been achieved with the funds”
“For this to succeed, government must put in a strong monitoring mechanism to check corruption and other primordial considerations that scuttled similar initiatives.”

Samson Itodo, head, research, policy and advocacy, Youth Initiative for Advocacy Growth and Advancement, (YIAGA), noted that as commendable as the initiative may seem, government must establish modalities for “monitoring and accountability”
He expressed concerns over the absence of a legal framework, without which the programme may suffer hiccups similar to those put in place before.
“This initiative is meant to help youths with creative ideas, it should not be politicised or used as patronage for political supports. It will only be meaningful and credible if the funds go to those with the right kind of ideas.

“We know that the funds are meant to address poverty and cushion the effect of the global coronavirus pandemic on our teeming youths, so, government must establish a broad based monitoring and evaluation group made up of stakeholders, such as people with disabilities and young men and women with sound creative ideas”

Itodo however assured that YIAGA would be organising a programme to bring together other stakeholders to ensure proper monitoring of the initiative.

A source close to the ministry of sports, told BusinessDay at the weekend that the ministry has set for itself two weeks within which to release the guidelines for accessing the fund.

The source, who did not want his name in print, said a technical committee has been set up to fine-tune the guidelines, working with the CBN.

The fund, according to the source, would be domiciled at the CBN.

“This is the first time that we are coming out with this programme as part of our efforts to help our youths. So, the minister has set up a technical committee to fine-tune the guidelines, in line with the mandate given by FEC”

The Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari, announced the setting up of the funds, to be designated as “youth yank” to support youth enterprise among Nigeria’s 68 million youth who are between ages of 18 and 35.

“Youth within this age group with genuine business ideas are to pitch their ideas in any of the 125 micro credit banks across the country and qualified candidates will have access to the funds”

Dare had stated that the process for accessing the fund would be digital and fair to all youth aged 18 – 35 regardless of their ethnicity or social status.