September 2014

By Dr (MRS) JULIET CHUKKAS –ONAEKO, MFRDIRECTOR- GENERAL/ CHIEF EXECUTIVE

INDUSTRIAL TRAINING FUND

……Developing Skills for Employment and Job Creation…Developing Skills for Employment and Job Creation…

TVET: AN IMPERATIVE TO SKILL ACQUISITION FOR LIFELONG

LEARNING

Introduction

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I believe that the theme of this forum is very timely and will contribute immensely not only to sustaining the momentum of Technical Vocational Education and Training (TVET) in Nigeria and Netherlands but will further reinvigorate the various Skills Development initiatives currently being implemented.

This topic is also crucial because, skilled workforce is the hub of developmental initiatives of any Government and without it being efficient, strategic plans will be difficult to implement and socio-economic development will continue to elude it. The theme of this forum, will definitely contribute to the global developmental efforts in Skills acquisition which is considered a panacea for most of the challenges facing nations i.e. poverty, insecurity, employment crisis, low level of industrialization, stunted economic growth among others

ITF MANDATE

The Industrial Training Fund was established in 1971 by the Federal Government of Nigeria with the following mandate:

• To provide, promote and encourage the acquisition of skills sufficient to the need of both the Public and Private Sectors of the economy

• To Provide training for skills in management for technical and entrepreneurial development in the public and private sectors of the economy

• To Set training standards in all sectors of the economy and monitor adherence

• To Evaluate and certify vocational skills acquired by apprentices, crafts men and technicians in collaboration with relevant organization

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ITF STRATEGIC PLANS

• Become a top 5 global hub for Labour Intensive businesses– billions of dollars in Investments

• Create millions of Jobs, and radically reduce the unemployment rate

• Emerge as a market leader in specific specialized skill areas

• Use Nigerian skilled know-how as a competitive advantage in global Industry

• Improve Standards and Quality of Nigerian Products

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The Nigerian Skills Prospects – The Nigerian Skills Prospects – A robust supply of laborA robust supply of labor

Strong Workforce Dynamics

Population : 170 million

Workforce: 69 million

Age bracket: 18 year median

Diaspora : Over 3 million

Labour Laws:

Avg Wages:

--7th Largest

--9th Largest

--Excellent !

--Excellent!

Nigeria has one of the best conditions in the World, for a high quality workforce

Globally Competitive

Investor Friendly

--Import Skills

--In Youngest 20% globally

… Now we need to turn the quantity advantage, to productive

advantage

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The Nigerian Skills Prospects – The Nigerian Skills Prospects – Needs of the Market PlaceNeeds of the Market Place

Figure - Percentage of businesses facing significant Skills shortages in filling job openings

However the shortage of technical and vocational skills is constraining business growth, and restricting employment

ITF estimates that 1 in 3 businesses is facing significant skills shortages, and struggling to fill highly proficient technical and vocational positions

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The Nigerian Skills Prospects – The Nigerian Skills Prospects – NonNon-Technical Skills are overemphasized in our Technical Skills are overemphasized in our Professional educationProfessional education

Figure - Distribution of University Output by Discipline

Too many Nigerians are pursuing Social Sciences and Arts disciplines. In addition, many Nigerians who study Technical disciplines, do not pursue Technical careers.

This is hindering our national ability to Industrialize, and is constraining sectors like Agriculture, Mining, Manufacturing etc

Skills are key part of the Nigeria Skills are key part of the Nigeria Industrial Revolution PlanIndustrial Revolution Plan

NIRP Goals: focused on Economic and Revenue Diversification

NIRP Industrial Sectors: where Nigeria has comparative advantage

NIRP Supporting Structures (i.e. Enablers): to increase competitiveness, by removing barriers, and raising productivity

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Repositioning the Industrial Training Fund (ITF)Repositioning the Industrial Training Fund (ITF)

Partnership with; SENAI,World Skill Int’l, UNIDO, ITEE Singapore, etc.

Foundation Initiatives

Grassroot Training Progamme

Train 2m People

Practice with focus on skills development and Job Creation

Partnership with NECA,MAN, Industry Experts, Mentors etc.

Use SENAI Model for Vocational Training &

German Dual System forSIWES

Close liaison with 774 LGAs to raise Trainers to support ITF Vision

Train The Trainer Programme

Upgrading and EstablishingNew training Centres

Top Goals

Lear

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W

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Pillar Support Initiatives

Organizational Capital: -Leadership + Alignment +

Teamwork

Database Collection and ICT Automation

Action Learning ModulesTrain the Trainers and Mentorsto support potential employees

Job Creation

Automation Four:The Four Cardinal Points

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New Thrust of the ITF

Nigeria Industrial Skills Development Programme, 36,000 youths in 2013; to be scaled up in 2014, 2015

Expanding ITF Infrastructure on Job Matching, to match skills investments to trainings provided

The Industrial Training Fund set up by legislation in 1971, is mandated with developing practical skills in Nigeria (Technical and Entrepreneurial) Under this administration, the ITF is undergoing fundamental reform, and is focusing

on matching young unemployed youths, to real Jobs in the market place

•Focusing on Skills for Employment

•Targeting the Youth & Work force

•Extending reach to grassroots ITF has been working with each of the 774

Local Governments in Nigeria , on specific customized Skills Development Programmes

•Building Capacity with International Partnerships SENAI Brazil , ITE Singapore, others are to

follow e.g Germany

•NIRP and NEDEP

Strongly linked with Governments Industrialization and MSME agenda

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MSTC & ISTCs OF INDUSTRIAL TRAINING FUND MSTC & ISTCs OF INDUSTRIAL TRAINING FUND (ITF) (ITF)

Update project of School Units of Abuja, Jos, Kano, Lagos and LokojaUpdate project of School Units of Abuja, Jos, Kano, Lagos and Lokoja

ITF Projection On Skills Development For Job Creation 2014 - 2018

Programmes Projection Jobs

Year 2015 2016 2017 2018 Total Year No.

Regular Programmes (Work & Industry Based) by ISTCs

3,350 7,700 13,050 21,300 45,900 2014 39,455

Direct Training Programmes (Upgrading) by Area Offices

25,000 32,000 40,000 45,000 143,800 2015 1,120,993

Modular Programmes (Basic Employable Skills) by ISTCs•3 Months•6 Months

23,2805,560

35,75016,750

42,20023,700

45,80024,600

147,03070,610

2016 1,511,051

Technological/ Technical Programmes (skills Upgrading by Area Offices and ISTCs)

1,850 2,700 3,500 4,350 12,400 2017 1,854,797

National Industrial Skills Development Programme (Basic Employable Skills) 1000/ 2000/ 3000 per State

111,000 222,000 222,000 333,000 888,000 2018 2,541,103

Training with Mobile Training Units (6 Units) 240 720 720 720 2,400 Total

7,067,339

Additional 43 skill Training Centres With 36,000 trainees annually per centre ( with 25% annual Increase)

1,548,000 2,000,000 2,500,000 3,125,000 9,373,000 65% of Annual Grand Total for each year amounts to Job Creation above.

Other Collaborations (Prospects with 15% annual increase)

6325 7275 8365 9620 37,085

GRAND TOTAL 1,724,605 2,324,695 2,853,535 3,909,390 10,112,340

World Standard Specialized Skills Centers e.g. Auto Parts Skills Centers; Upgraded Industrial Skills Training Centers; Re-organized ITF

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Way ForwardWay Forward

SENAI\ITF Partnership Long term collaboration enhancing ITF’s

Technical skills efforts around the country Extending Nigeria’s TV&E capabilities in

vertical skills development

Skills Gap Assessment with UNIDO With the United Nations Industrial

Development Organization (UNIDO) Survey has commenced and is evaluating

Nigerian Skills needs based on projected Investments in the Nigerian economy

What we will seeOngoing Reform Initiatives

A list of skills needed in Nigeria pver the next 5 to 10 years in Nigeria

A review of which sectors, and areas, will be major job creators over the next 5 to 10 years

<compared to other countries>

TV&E Skills Development Centers in each Senatorial District (either Govt or Private Owned)

2 million people enrolled each year

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Way ForwardWay Forward

Expanding Training Assets in the Country Govt Owned Centers, and Private Sector Franchised Centers

Jobs Placement Infrastructure To Provide Jobs to Trainees In Partnership with Private Sector

contributors (i.e. all private sector)

What we will seeOngoing Reform Initiatives

A direct intervention in the employment market

Technology based store of skilled ITF resources, and Available openings

Instant link to fill short term\part time job opportunities e.g. phone texts, electronic jobs boards etc

•Building and equipping of New Technical and Vocational Training Centres

•Provision of learning tools

•Collaboration in Capacity building

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Opportunities to Partner with the Opportunities to Partner with the Industrial Training FundIndustrial Training Fund