Senate Passes NYSC Trust Fund Bill; Corps Members To Get Start-Up Financing
A law requiring companies doing business in Nigeria to contribute 1% of their net profits to the National Youth Service Corp Trust Fund was approved by the Nigerian Senate on Tuesday.
The NYSC Trust Fund (Establishment) Bill, sponsored by Deputy Senate Leader Ajayi Boroffice, was approved on the floor of the Nigerian Senate on Tuesday following its third reading (APC, Ondo North).
According to the measure, 0.2% of all money flowing to the federation account will also go toward funding the trust fund.
“The Trust Fund would be a levy of 1% of the net profit of companies and organised private sector operating business in Nigeria, a 0.2% of total revenue accruing to the federation account and any takeoff grant and special intervention fund as may be provided by the federal, state and local governments of the Federation,” the bill partly read.
“Other sources of the funds include such money as may be appropriated to meet the objective of this Act by the National Assembly in the budget; aids, grants and assistance from international bilateral and multilateral agencies, non-governmental organisations and the organised private sector; grants, donations, endowments, bequests and gifts, whether of money, land or any other property from any source; and money derived from investment made by the Trust Fund,” it added.
According to Mr. Boroffice, the bill’s main goal is to provide interested corps members with startup funding to support their entrepreneurial endeavors.
The proposed fund aims to provide a long-term financial source for the NYSC, skill acquisition training, and the provision of start-up funds to corps members.
Recall that the National Youth Service Corps Trust Fund (Establishment) Bill, 2022 was passed by the House of Representatives earlier in April.
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