Nasarawa state government and Bank of industry (BOI) signed an MoU on N500m Youth Revolving Fund scheme towards wealth creation through investment. In an interview with MOHAMMED YANGIDA, the Senior Special Assistant (SSA) to the governor and focal person, human capital development, Habiba Balarabe Suleiman explained how far the programme has gone.
There is an ongoing revolving funds scheme in Nasarawa state, kindly give us an insight.
In tandem with His Excellency’s policy on youths development and from the mandate of Human Capital Development Agency in particular, we sat down and thought of ways that we could achieve actual hope among the youths. This is because severally we had development projects and programmes geared towards personal hope and socio economic development, but it did not yield the desired result. So we thought we could fashion out something in a different manner, of different approaches in order to get the actual result. We were already engaged in partnership with Ox-farm Nigeria First Graduation Academy which gave us four years approval for the employment and entrepreneurship training. After the training, a two- week intensive career training programme kick started and the training ended with a job fair. It is expected that we would pair the graduates with jobs and business opportunities, but after the first batch went successful, we had quite a number of people and organisations that came for interview yet not found worthy for engagement and so the need to intensify more efforts. In the second year, we had basically the same thing and from the fellers we received from the graduates, there were more people into business than white collar jobs. The curriculum concentrated on entrepreneurship after which we thought we should be able to reach out to financial institutions and get finances, but they were not able to do so and that was what further stamped our intention to diverse the means of connecting them with the finance. So that is what stemped our decision to approach the Bank of Industry. I remember in the first meeting we had with the bank, they have facilities that we can enjoy from, but would also entails the individual approaching the bank by themselves and I felt they did not do that. Because most of them are scared, they thought what if they were not able to pay back? It over shadowed their intention actually; so, we entered into discussion with the bank that we could also have a stake to drive and ensure success. Initially our discussion with them was to give us facility. To that extent, we proposed a matching fund where the state government will commit 50 percent while the bank commits 50 percent
How did this idea came about?
The idea of the revolving fund scheme came from us, because we do not want something that will just wind up but to further reiterate the importance of payment of the loan because there are others on the cue also waiting. So with the fund used as turn over, you return the capital and another person is able to access it. That was what gave birth to youths revolving scheme. It is actually an offset of the fact that we were not able to achieve intention of the job fair from the E and D programmes
How much is involved?
The whole amount for the Nasarawa State Youth Revolving Fund is N500m. N250m from the state government while N250m is from the Bank of Industry.
How many people have benefited from the scheme so far?
When we lunched the scheme, we opened the application portal. As we were doing that, we were also trying to make people engage in digital literacy. So we placed emphasis on application through our website, but that one doesn’t seem forthcoming; so we started accepting the physical application. I remember the first batch of application we received were about 69 for batch A. We were quite amazed in some cases and taken aback by the nature of application we received. So after the first screening, we were able to came up with 21 viable applications.
What exactly are you looking for?
Mostly we were looking at people who understood what business is all about, people who already have some forms of businesses and even people who did not have experience but have a very good understanding of what the business that they proposed entails.
Do these 21 persons benefits from the scheme?
No, they are not because we have a three tier screening process. First the application process, business planning pitch where these 21 selected presented their proposals, but here we now discovered that some people who have a good understanding of the business were not able to put together business plan that matched their intention, and we advised them appropriately. Then we further discovered that some very beautiful business proposals were presented by people who had no idea of what the business entails, and so we were able to set out these proposals and ended up with 10 beneficiaries. That is how we selected the 10 successfully-screened beneficiaries.
How much is the amount given so far?
So far for the 10 people, the total amount is N22m that is because we are trying to ensure that the scheme is successful and we want it to be incentive for the beneficiaries. I think the highest individual amount awarded was N3m but we told them once they get their business going, we would follow up and once they are doing well as what they have presented in their plan and there is any way they need to expand the forms, we are available for them.
So far you have 10 people who benefited from this scheme. Are you planning to expand it?
We have started processing batch B. So far, we have about 109 applications. At the first screening, we found 71 viable, I think most of the people that have returned are those ones that we advised to go and re-work their proposals. They have done that and taken time to do more research on the business part and what they have presented is quite viable, so we have people in this batch that are accessing higher than N3m.
What are you doing to ensure that a certain number does not go to a particular set of people?
I think using this sentiment is what exactly slowed progress in some areas especially in this kind of endeavours. It is time we gave precedence to deserving people based on competence and not where you are coming from, your tribe, or religion. We are very open even when we received the applications, we published them. We did the first screening, published it and sent messages to those that had progress and those that hadn’t. When we finally awarded the amount it was published and was very open.
In this scheme, do you have any thing special for women?
Yes, what we have for the womenfolk is to put together the framework for women in business, but as far as the scheme is concerned, whether you are a male or female, once you earned it, it is there for you to access.
Are you saying that you have created enough awareness?
We did quite a lot of awareness but I want to believe that its not enough. Currently, we are working with you the press to expand the scope because what we have now we realised is that, we need to open up to the possibility that we could have people with a very good lucrative profit- making business but who do not communicate in English Language and so we decided to break down and translate the scheme into major languages in the state, using the radio and television so that we would able to maximise their needs. To these people is something that we are currently working on, but as much as possible, we try to go to other social media handles. From time to time we go to radio stations to do programmes. All our staff are mandated to spread the news about the scheme and that’s why we have asked the beneficiaries to give us their information. So we are trying to enlarge the scope of the awareness so that more people can benefit.
What is the interest rate?
Bank of industry is charging five percent interest rate.
Do you have a recovery plan?
The state government is not managing the funds, but the bank. Now, you can understand why some of them find it rigorous, you have to prove it over and above that you can repay the loan. Even the business premises are being inspected. You have to do those things before you actually access the funds.
