House Approves Establishment of National Social Investment Programme, NYSC Trust Fund

Udora Orizu in Abuja

The House of Representatives yesterday  passed through third reading a Bill which seeks to establish National Social Investment Programmes (NSIPs) with a view to assisting and empowering the poor and vulnerable persons in Nigeria.

The Bill was passed after the adoption of the report of Committee on Poverty Alleviation at the Committee of the Whole.

As stipulated in Clause 18 of the bill, the funding for the NSIP programmes shall be drawn from: counterpart contribution from the Federal, State and Local Governments; such sums as may be appropriated for the programmes by the National Assembly; such sums as may be provided by the federal government or by a state government to support the activities of the office or a particular programme; donations from individuals, companies, government institutions, bilateral or multilateral organisations and development partners.

Other sources include: two per cent of recovered assets and repatriated funds; 0.25 per cent of the profit before tax of companies and enterprises including telecommunication, government contracts, banks and other financial institutions and insurance companies; 0.5 per cent to one per cent of VAT and company tax to any company doing government contract to social investment programmes in Nigeria.  and fees for services rendered by the Office in connection with its functions and powers under this Bill.

Clause 8 of the bill provides that the NSIP bill is to regulates various programmes namely: National Social Register, National Beneficiaries Register; Conditional Cash Transfer, National Home-Grown School Feeding Programme, N-Power programme; Government Enterprise and Empowerment Programme as well as such other social investment Programmes as may be approved by Mr. President.

The lawmakers also passed through third reading a bill which seems to establish National Youth Service Corps Trust Fund (NYSCTF) for the purpose of providing a sustainable source of funds for the National Youth Service Corps (NYSC).

The bill was passed after the adoption of the report of the Committee on Youth Development.

On the sources for the Trust Fund, Clause 4(a-c) provides that it shall consist of a levy of one per cent of the net profit of companies and organized private sector operating business in Nigeria.

It also provides for a 0.2 per cent of total revenue accruing to the federation account; and any take-off grant and special intervention fund as may be provided by the Federal Government.

The Chairman of the Committee, Hon. Yemi Adaramodu, presenting the report, expressed optimism that the bill, when passed into law will provide alternative hope for youth who cannot secure automatic employment after the NYSC scheme to hopefully attain financial independence.