By Abdulhaleem Ishaq Ringim
As rightly identified by policy documents of both Atiku Abubakar and Bola Ahmed Tinubu, young people remain the country’s most valuable assets. However, this tremendous resource base is severely underutilized, as evidenced by unemployment and underemployment numbers. This makes job creation and youth empowerment significant points of policy focus and concern for both candidates.
Tinubu, to start with, in the 3-paged “Youth Empowerment and Entrepreneurship” section of his policy document titled “Renewed Hope 2023”, outlined a number of strategies his administration would implement if elected into office to ensure enhanced job creation, youth entrepreneurship development and empowerment.
Identifying the lack of access to credit at the fore of the challenges impeding youth entrepreneurial development, Tinubu plans to ensure easy access to low-cost credit for youth-led enterprises and simplification of loan application processes. He plans to leverage the instrumentality of the CBN to develop suitable incentives for commercial banks in this regard and mandate federally owned and affiliated financial institutions to develop similar schemes.
He also plans to bolster intergenerational business mentoring and cooperation with 2 million volunteer entrepreneurs and professionals across the nation committed to working with youth to find employment, hone job skills and create businesses. Per the plan, a Youth Advisory Council would be inaugurated to the Employment Action Plan the administration would develop if elected.
In his bid to reform the National Youth Service Corps(NYSC), Tinubu intends to develop and strengthen a job-matching programme for graduates to enable more corps members to enter the private sector during their service years. Employers would also be incentivized to retain corps members at the end of their service.
Additionally, he intends to expand business incubation centres to support youth innovators to acquire and protect through patent and trademark registration, intellectual property and other proprietary rights over inventions and innovations.
As far as governance and political appointments are concerned, his administration intends to preserve at least 3 cabinet positions for persons under 40, 6 more positions for persons under 50 and 20 per cent of political appointments to MDAs to persons under 40. A Presidential Fellowship Scheme would also be established to train future leaders.
On the other hand, Atiku dedicated 10 pages to discussing his plans on “Job Creation”, where he outlined four pathways(to jobs ) his administration would create if elected President come 2023.
The first pathway is the Informal Sector Pathway to Jobs. It starts with relaunching the National Open Apprenticeship Programme(NOAP). The programme would recruit 100,000 Master Crafts Persons(MCPs) annually who would, in turn, train 1,000,000 apprentices(especially those who have lost the opportunity to attend or complete basic education) on various trades and skills.
The MCPS and apprentices(upon graduation) would be beneficiaries of 21st-century standard business advisory services, and their training clusters would serve as robust ecosystems that would guarantee ease of access to finance and other ancillary services.
National Board for Technical Education(NBTE) would be mandated to create a credible, recognized and verified skills/competencies certification system for the beneficiaries of the programme. The certificates would serve as credentials for employment purposes in the “new-collar” or informal skills-based sector. The Programme, of course, would be operationalized in close collaboration with the private sector and relevant trade associations.
The second pathway is the Entrepreneurship Pathway. It starts with working towards the speedy passage of the National Research and Innovation Fund(NRIF) Bill. When passed, the Fund would receive funding from the CBN’s MSME Fund, Development Bank of Nigeria, Bank of Industry and other private sector institutions and donor agencies. It is expected that at least 100,000 budding entrepreneurs will be added annually.
Support from the NRIF will be in the form of grants, loans or equity investments in small enterprises. It shall be provided either as start-up capital or to scale up innovations that have already demonstrated a strong track record of impact and effectiveness.
Atiku also seeks to introduce and actively promote a Graduate Trainee Internship Programme (GTI), which would target National Youth Corps members. The GTI will transfer useful employability skills to Corps members to increase their chances of finding sustainable employment. While they undergo entrepreneurship training, the NYSC will be matched with potential employers for internship/traineeship in the private sector.
The technical and financial capacity of the Industrial Training Fund (ITF) would be grossly improved to operate its internship and apprenticeship programmes at a much higher scale to cover a minimum of 2 million workers per year.
The Schools to Jobs Pathway is the third pathway identified by Atiku. Here, a formal Technical and Vocational Education and Training (TVET) system will be supported and technical colleges and vocational skills acquisition centres will be re-positioned to produce skills and competencies for innovation and the creation of new ideas and products inside enterprises from where future jobs and future prosperity will derive.
This would be followed by training of a low-level workforce, such as operatives, artisans, craftsmen and master craftsmen for commerce, industry, agriculture, and ancillary services. The absorptive capacity of the formal post-basic TVET and Vocational Centres will be increased from the current total enrolment and completion of fewer than 200,000 students to 500,000 in 2025 and 1,000,000 by 2030.
Additionally, selected vocational training institutions would be remodelled into a one-stop shop to provide vocational training, entrepreneurship (accounting, management training expertise), life-skills programmes, etc.
Enterprise start-up training programmes to be delivered by SMEDAN would be provided to the graduates of technical and vocational training centres who opt for self-employment. Upon completion of the training, participants will submit business plans to Micro Finance Banks and apply for loans from the Bank of Industry, which will be supported by a start-up grant from the National Innovation Fund.
Graduates of the technical colleges will receive loans and Business Development Service coaching and support from SMEDAN/ Business Development Service Providers. On successful repayment of loans, graduates will receive a final grant (matched to the value of the original loan value) to boost their businesses.
The fourth and final pathway, as outlined by Atiku, is the MSME /ICT Special Entrepreneurship Pathway. This shall start with the facilitation of the establishment of the SME Venture Capital Fund by the private sector to provide longer-term capital for targeted small firms. The administration shall aim to attract a minimum of $250 million in private-sector funding for Nigerian small businesses.
The administration would create a platform for de-risking SME lending, increase the MSMEs funding window from N200 billion to N500 billion, and set aside the same for the new platform. Awareness of the National Collateral Registry of Nigeria will be rigorously promoted, and the collateral registration process will be further simplified, especially for places without internet access. Enhanced registration access will help unlock much-needed finance for MSMEs.
The administration would also establish the Financial Innovation Fund((FIF) to incentivize commercial and Microfinance banks to develop innovative solutions for providing credit facilities to the MSMEs sector. The Small-scale Industries and Graduate Loan Guarantee and the Small -Scale Industrial Credit Scheme shall be reformed and reintroduced.
Special focus on the ICT sector will be provided by Atiku’s administration, and Nigeria shall be aggressively marketed as an outsourcing destination. With a robust IT infrastructure in place and more than 150 million mobile phones, opportunities abound in Business Process Outsourcing with the potential to create 2 million direct and indirect jobs. Nollywood, a great labour employer, would be actively promoted to make it the 3rd largest film industry in the world.
And on political appointments, 40 per cent of the cabinet would be reserved for youth and women.
On comparison, one would notice certain points of convergence from the above excerpts as directly culled from both policy documents. For example, both documents identified a lack of access to credit and finance as a major impediment to youth entrepreneurial development.
However, while the Tinubu plan heavily stresses easing access to commercial loans and simplification of loan application processes, Atiku’s planned interventions seem more specific, overarching and diverse (with adequate involvement of the private sector). They also seem more sustainable as most of them would be backed by legislations and institutional pillars like the NRIF, SME Venture Capital Fund, Financial Innovation Fund etc.
Another point of convergence is the identification of the imperative of intergenerational business mentorship as a veritable avenue for job creation, youth empowerment, and entrepreneurial development. However, with ease of access to funding interventions, the Atiku plan seems more practical considering specific policy prescriptions like the establishment of the NOAP under the Informal Sector Pathway to Jobs. It also seems more sustainable as it seeks to create a new labour market and standard for employment to be legitimized by the new NBTE skills/competency certification system.
Additionally, while Tinubu’s NYSC reform focuses heavily on ensuring more corps members join the private sector mainly by simply incentivizing employers to retain them, the Atiku plan approaches the problem more prudently as it seeks to equip corps members with high-value employability and entrepreneurial skills through the Graduate Trainee Internship(GTI) programme before matching them with potential employers. No incentive matches the availability of employees with enhanced employability and entrepreneurial skills for private sector employers as it means enhanced productivity.
The same goes for other interventions that both policy documents commit to pursuing. One intervention, however, that is important but seems missing in the Atiku plan is the Presidential Fellowship Scheme proposed by Tinubu to serve as a platform that gives young people the opportunity to experience and participate in public service and governance as with Kaduna State’s Kashim Ibrahim Fellowship and Lagos State’s Lateef Jakande Leadership Academy.
Notwithstanding, the Atiku plan clearly provides more specificity and seems more practical and sustainable(backed by legislation and institutions). It is also more diverse in scope and solutions pathways for identified impediments towards enhanced job creation and youth entrepreneurial development. The Atiku plan is better for job creation and sustainable youth empowerment.
Abdulhaleem Ishaq Ringim is a political/public affairs analyst. He writes from Zaria and can be reached via haleemabdul1999@gmail.com and @pragmatist_AIR on Twitter.
