The Nigerian Senate on Tuesday passed a bill mandating businesses operating in Nigeria to remit one per cent of their net profit to fund the National Youth Service Corp Trust Fund.
Passed on the floor of the Nigerian Senate after its third reading on Tuesday, the bill titled NYSC Trust Fund (Establishment) Bill was sponsored by the Deputy Senate Leader, Ajayi Boroffice (APC, Ondo North).
The trust fund according to the bill will also be funded by 0.2 per cent of total revenue accruing to the federation account
“The Trust Fund would be 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.
The bill, according to Mr Boroffice, is focused on giving start-up financing for interested corps members to promote their entrepreneurial projects.
The proposed fund is intended to offer a long-term source of funding for NYSC, skill acquisition training, and the providing of start-up money to corps members.
Recall that the House of Representatives had earlier in April enacted the National Youth Service Corps Trust Fund (Establishment) Bill, 2022.