Sustainable Financing of Youth Empowerment Scheme in

Oyo State Nigeria A Panacea for Poverty Reduction, Wealth Creation and Employment in Achieving

Sustainable Development GoalsAdopting Public Private Partnership Initiative

By: ONAOLAPO SULAIMAN BAYONLE

Background Economic and human development is achieved when

there is an improvement in the material status of individuals.

This entails measurable improvement in the capacity and the capability of people to have unfettered access to basic needs in life as well as marked abatement of individuals’ vulnerability to economic, political and Natural disasters.

The surest way to achieve economic and human development is through a systematic programme of empowerment that will ensure that individuals are gainfully trained and empowered in providing for their basic needs in the areas of Feeding, Education, Health, Accommodation and Transportation while they therefore improve on their socio-economic condition.

Sustainable Development Goals and Human Development – Goals 1 & 2. To be sustainable, economic growth must be constantly nourished by the fruits

of human development such as improvements in workers’ knowledge and skills along with opportunities for their efficient use: more and better jobs, better conditions for new businesses to grow, and greater democracy at all levels of decision making

Background Oyo State Government have taken steps towards this by

establishing Youth empowerment scheme (YESO) but has not yielded the expected result of reducing poverty and unemployment rate.

Despite, the developmental challenges being faced by the people in Nigeria is manifested in the persistence rise in unemployment indiex of the nation and which stood at 7.5% in Q1 ‘15 and increased to 8.2% in Q2 ‘15 from 6.4% in Q4 ‘14

In the light of the United Nations’s deep concern for the widespread and scourging poverty, the Oyo State Government needs to transform its existing Youth Empowerment Scheme into a bankable, Public Private Partnership model for an enduring solution to combating unemployment and poverty as well as creation of wealth for all and sundry in the State.

Objectives of this presentationThis presentation requires the attention of Oyo State Government at the 3 tiers, the private investors, the International Communities, local communities and the general public as it is directed towards: Providing a sustainable socio-economic empowerment solution

to the developmental challenges of the Government. Providing a strategic approach to developing the local economy

and increase the IGR generation, assist the government in its Domestic Resource Mobilization efforts.

Suggesting a Public Private Partnership approach to sustainable funding of Youth Empowerment.

Sustainable Development Goals and Youth Empowerment

Goal 1.

End poverty in all its forms everywhere

Goal 2.

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Challenges with the Existing Youth Empowerment Scheme in Oyo State Dwells majorly on providing welfare support for the

candidate with a very low impact on the productive economy.

Candidates were employed into provisioning of community development services

The Scheme Costs the State Government monthly allowances of the candidates in the sum of N200million

Challenge of conveniently and continuously paying the candidates Salaries.

The scheme is currently and solely being funded by the State Government as a political pet project

Challenges with the Existing Youth Empowerment Scheme in Oyo State

Ranked 24 in sustainability measure

Average Monthly revenue is N5.6bn with IGR represents 24%.

Monthly recurrent expenditure is N7.32bn

A shortfall of N1.63bn monthly The state will not be able to

sustain the financing of the Youth Empowerment Scheme (YESO)

The Way Outs Establish a platform through which the candidates could

continuously improve on their skills through the Scheme Trainings conducted for the youths should focus on

capacity building Ensuring an enabling environment for successful

application of the acquired skills into economic activities The necessity to involve the local community and

establish a formidable partnership and cooperation Forge Partnership and Cooperation with Private Sector,

Local and Foreign Organizations and Development Partners in the area of sustainable funding of the scheme.

Adopt innovative financing solution in implementing the project

Our Value Proposition Convert the existing State Government Funding of the

Scheme from a recurrent and consumptive nature into a capital investment nature.

Transform the Youth Empowerment Scheme in Oyo State into a veritable tool towards stimulating the State economy while contributing to the achievement of the Sustainable Development Goals of the United Nations.

Establish a sustainable empowerment platform for sustainable, constructive & gainful employment of the youths

Sustainable funding of the youth empowerment schemes Sustainable wealth creation, employment and Domestic

Resource Mobilization

The Model

How can these be achieved?

YES-O

• Reengineer the Scheme to focus on the harnessing of the State resources by engaging the Private Sector with the YESO scheme in training and empowerment programme to meet the basic needs of the people.

SEDEV

• Establish Sustainable Economic Development Villages (SEDEV), a new community and free trade zone, where local economic development activities is largely carried by the graduates of the empowerment progamme

Funding

• Adopt a Public Private Partnership funding solution in the implementation of the Empowerment Scheme and the SEDEV

Re-engineering the YESO Scheme Youths would be selected from existing Government

empowerment program, for enrolment into an months entrepreneurship programme, adopting a strategy referred to as “SITED” (Select, Inspire, Train, Empower & Dispose).

Trainings will focus on the use of local resources in their immediate environment to provide for basic human needs through which they are able to get employed or establish their self-managed enterprises.

The graduates are empowered and housed in the SEDEV to continue their economic activities.

This serves as an exit strategy for the Government from existing empowerment programme.

Establishing SEDEVSEDEV is a free trade zone and economic community where the graduate entrepreneur carry out economic activities in harnessing or local resources along value chain activities including, raw materials production, processing, packaging, branding, storage, conservation and marketing.A SEDEV will comprise of the following components. • Crop Plantations• Agro-allied Industries• Aquaria & Fish Processing Centre• Animal Ranch and Abattoir• Sustainable Economic Empowerment

& Learning (SEEL) Centre• SEDEV Market & Exchange• SEDEV Enterprises & Incubation

Centre

The infrastructure required to be developed around in each SEDEV may include any or combination of:• Power, • Mini-roads, • Schools, • Health Centers, • Housing & accommodation, • ICT etc.

Financing the Empowerment ProjectThe main funding solutions hereby proposed are to: Get the government convert the existing ₦200 million

monthly salary payment from a monthly recurrent expenditure to a Development Grant that will be used to attract Development Partners who will bring about the necessary investments that will create the IGR opportunities to repay back the grant

Win the support of the Informal sector to donate by signing up to a funding platform referred to as “Fast4Development”. Through this people will be to encourage to fast a day per week and donate the amount of the missed meal through a digital platform on phone and web. The fast is introduce to make the low income earner fit in the scheme.

Financing the Empowerment Project

These funding approach will now be utilized to form a blend finance from both public sector and private sector.

The findings will be used to crowd-in other funding supports from Local and foreign funding organizations and NGOs.

Financing the Empowerment SchemePROJECTS Finance Providers Expense to Finance

TRAINING Government • Costs of Training Centre, • Training Resource Persons• Training Materials• Training Allowances

Donor OrganizationsLocal Community/Individuals

EMPOWERMENT

Private Investors • Machines• Equipment and Tools• Working Capital• Salaries & Wages

DonorsMDBs

SEDEV Private InvestorsGovernmentMDBs

• Cost of Basic Amenities, Health, Education

• Infrastructure-Water, Electricity, Mini-roads, ICT

• Factories, Agro-allied Manufacturing plants, Crop plantations,

Financing Requirement and SourcesFinance Providers Who are they? What to

Finance?Strategy

Public Sector Federal, State Government & Ministries & Agencies

Training Costs, Water, Electricity, Land

Use the monthly recurrent funding to crowd-in other fund from other sources

Private Investors Pension funds, Sovereign Bonds

Machineries, Tools, Equipment, Working Capital

Part-finance the Government and MDBs funding

Donors Bill Melinda Gates, Ford Foundation

Training Costs, Machines, Equipment, Tools

Informal Sector Individuals, Entrepreneurs, Cooperatives

Water, Solar Electricity, Land

Fast4Development

Foreign Funding Institutions

World Bank, IDB, AfDB etc

Protecting the Private sector against lost of investment

Financing Strategies and the InstrumentsFinance Sources Strategies InstrumentsGovernment Convert the existing State

Government Funding of the Scheme from a recurrent and consumptive nature into a capital investment nature.

Grants, Concessionary Loans

Private Investors Loans, Leasing, Hire Purchase

Donors – Bill Melinda Gates, GAVI

Guaranteeing the Private Sector investments

Debt-buy down, grants

Local Community Fast4Development – Observe a day fasting per week and donate the amount saved from a missed meal towards the project through ICT platform

Web Money/Mobile Money

Foreign Funding Institutions

Provide Guarantees for the Investment of Private Sector in the Project.

Grants, Concessionary Loans

Conclusion Sustainable Development would be achieved through a

sustainable human capital empowerment program The Government needs to transform their empowerment

programs into a veritable economic focusing on harnessing local resources in providing human needs by establishing SEDEV

Government needs to convert recurrent funding into capital type as matching fund to crowd-in further funding from other sources

This would lead to wealth creation, employment opportunities and Domestic Resources Mobilization