1% from companies’ profit, 0.2% from federation revenue… highlights of NYSC Trust Fund bill

On Tuesday, the house of representatives passed a bill seeking to establish a trust fund for the National Youth Service Corps (NYSC) scheme.

The NYSC Trust Fund (Establishment) Bill 2021 was sponsored by Mayowa Akinfolarin, and it passed the first reading on December 16, 2021; and the second reading on January 20, 2022.

According to the proponent, the trust fund will help curtail the rate of unemployment and address the infrastructural deficits besetting the scheme.

It will also provide start-up capital for interested corps members to drive their business initiatives under the scheme’s skill acquisition and entrepreneurship development programme (SAED).

With a few loud ‘ayes’ passing the bill into law on Tuesday, NYSC is about to get a facelift.

Here are a few highlights of the proposed bill — NYSCTF.

NOT EXCLUSIVE TO CORPS MEMBERS

The Trust Fund established under Section 3 of the Act covers all corps members, personnel of the NYSC, orientation camps, formations, facilities, and for the overall improvement and efficiency in the discharge of their duties and responsibilities.

The Trust Fund is to operate concurrently with the National Youth Service Corps Scheme from the commencement of the bill.

ONE PER CENT OF COMPANIES’ PROFIT

Part 4 section (1) stipulates thus:

A levy of 1 per cent of the net profit of companies and organised private sector operating a business in Nigeria; 0.2 per cent of total revenue accruing to the federation account; any take-off grant and special intervention fund as may be provided by the federal, state, and local government.

Aids, grants, and assistance from international bilateral and multilateral agencies, non-governmental organisations, and the organised private sector; as well as such money as may be appropriated to meet the objective of this Act by the national assembly in the budget.

Also, any money that is derived from investments made by the Trust Fund.

HOW THE MONEY WILL BE EXPENDED?

1. meeting the federal monthly allowances need of Corps members. However, the federal government shall augment the allowances of corps members in the event of an economic downturn which affects the inflow of funds into the Trust Fund.
2. meeting the Skill Acquisition Training and Empowerment needs of corps members;
3. meeting the training and re-training needs of the personnel of the NYSC;
4. enhancement of the skills of corps members for improved proficiency and employment generation;
5. development of orientation camps and NYSC formations with facilities therein;
6. sponsorship of corps members’ group community development service projects and activities;
7. expansion of existing NYSC Ventures and funding of the establishment of new ones for the training of corps members and production of items required for the institutional needs such as orientation camps.

ESTABLISHMENT OF BOARD

The Trust Fund shall receive all money accruing to it under this Act; deploy all money accruing to the Trust Fund to meet the stated objectives of the Act; ensure the proper monitoring of the empowered corps members and intervention projects for purpose of accountability.

A member of the board of the Trust Fund, other than an ex-officio member, shall hold office for a term of three years in the first instance and may be reappointed for another term of three years and no more.

Members of the board of the Trust Fund shall be paid such allowances as may be determined by the Board in consultation with the National Revenue, Mobilisation, Allocation, and Fiscal Commission.

FUND OF THE TRUST FUND:

The bill establishes a general fund referred to as “the Fund” for the administration of the Trust Fund.

The fund shall consist of:

1. annual budgetary allocation appropriated by the national assembly for the management of the Trust Fund;
2. take-off grants and such other money as may be made available to the Trust Fund to meet the cost of administration; and
3. all other money that may be made available for the running of the Trust Fund.

ACCOUNT OF THE TRUST FUND

The Trust Fund will maintain an account into which shall be paid all money accruing to the Trust Fund.

1. The board shall also open and maintain an account into which shall be paid money received for management of the Trust Fund under section 19 (2) of this Act.
2. The accounts referred to in subsections (1) and (2) shall be managed in accordance with the extant financial regulations of the Federal Government of Nigeria.

ESTIMATES OF EXPENDITURE

The board shall, not later than 30th June of every year, submit to the president an estimate of its income and expenditure during the succeeding year.

ACCOUNT AND AUDIT

The board shall cause to be kept for the Trust Fund proper accounts and records and when certified by the board, these accounts shall be audited by auditors appointed from the list and in accordance with the guidelines by the Auditor-General of the Federation.

TAX EXEMPTION

1. The Trust Fund is exempted from the payment of income tax on any income accruing from investments made by the Trust Fund or otherwise.
2. The provisions of the Companies Income Tax Act, 2007 or any subsequent amendment thereto and any enactment relating to the taxation of companies or trust funds do not apply to the Trust Fund.

PRESIDENT OVERSEES THE BOARD

The president may give to the board directives of a general nature with regard to the performance of its functions.