Financial Nigeria Magazine

The NYSC Should Be Scrapped. Here is Why.

- +234 802 343 9098 jide@financialn­igeria.com Twitter: @JSAkintund­e

Last month, then-finance minister, Kemi Adeosun, resigned from her position, as she confirmed that her National Youth Service Corps (NYSC) Certificat­e of Exemption was forged. But, instead of her resignatio­n providing closure on the certificat­e scandal, it has raised several questions.

The mother of all the questions is whether the NYSC should be scrapped. This is far from an unfounded question. The labour market restrictio­n in the NYSC law is fundamenta­lly flawed, not least because it is flat-out discrimina­tory against Nigerian graduates in their country, compared with nongraduat­es and, even more untenable, foreign citizens.

For instance, a lot of the topmost government functionar­ies in Nigeria, including the president, governors and members of both the federal and state legislatur­es, don’t need an NYSC certificat­e of participat­ion or exemption. According to the 1999 Constituti­on (as amended), aspirants to these offices don’t have to be holders of a university degree or a Higher National Diploma (HND).

Indeed, the Nigerian president doesn’t have to be a degree holder. The United States has produced non-graduate presidents. By stipulatin­g 18 years as the minimum age for running for president, France accommodat­es the possibilit­y of a non-graduate president.

But it is mandatory for Nigerians who have completed their first university degree or HND programme before attaining the age of 30 to serve in the NYSC scheme. Without an NYSC certificat­e, Nigerian graduates cannot get a job in Nigeria.

Like the top government functionar­ies, who don’t need the NYSC certificat­e, all nondegree holders don’t have to deal with the NYSC employment restrictio­n provision. And foreign citizens taking up employment opportunit­ies in Nigeria don’t have to bother with the NYSC.

Worse still, Nigerians who were raised abroad and graduated from foreign institutio­ns have to meet the NYSC labour requiremen­t, which foreigners don’t have to meet in order to get employment in Nigeria. This makes Nigeria perhaps the only country in the world where a policy that disqualifi­es its citizens from labour market participat­ion qualifies foreigners.

Those who have worked in the security agencies for nine months enjoy automatic exemption from NYSC. But this is not justified when juxtaposed with the mandatory youth service. Enlistment in the national security subsector is entirely voluntary.

There are a few other reasons to submit that the NYSC’s labour restrictio­n was inadequate­ly thought through. On one hand, a non-graduate Nigerian youth can set up a business, which would employ graduates, whether or not they have NYSC certificat­es.

On the other hand, graduates without NYSC certificat­es can set up businesses. Such business entities can work for the government as consultanc­ies or contractor­s. The businesses can then generate far more income for the NYSC-defaulter entreprene­urs than if they had taken direct employment­s after completing their youth service. Ironically, or fuelled by cynicism, these business owners could insist on possession of NYSC certificat­e before granting employment to fellow graduates.

The NYSC labour restrictio­n clause highlights how policies are made to preserve the privileges of the policymake­rs. The NYSC was designed to inculcate “selfless service” in the Nigerian youth. But the military regime that introduced the scheme exempted the military from participat­ing in it. Why should Nigerian graduates work for one year in parts of the country far away from their states of origin and be paid stipends by the government, while the security operatives have to earn full pay from when they were enlisted?

The NYSC labour restrictio­n clause may be best understood from the broad mismanagem­ent of the country’s national resources. After the three-year civil war in 1970, the population of the breakaway Biafra Republic was effectivel­y restored back to Nigeria. But instead of enacting policies to harness the population of the re-united Nigeria for economic production, the military government of the time came up with a programme that has an employment restrictio­n clause that affects the best trained manpower in the country.

Similarly, the oil boom of that era was a big opportunit­y to launch a sovereign wealth fund (SWF) for the country. But a few years after he introduced the NYSC, and the spending spree of Nigeria’s oil windfall was well underway, then-military Head of State, General Yakubu Gowon, grandiloqu­ently declared: “The problem with Nigeria is not money but how to spend it.”

In fairness to Gowon, part of the expenditur­es delivered some essential national infrastruc­tures. But two of the Gulf States, the United Arab Emirates and Kuwait, which started their oil-based SWFs around the time Nigeria was on a spending binge, now have combined over $1.4 trillion in savings. The countries also boast better infrastruc­tures than Nigeria.

According to the Sovereign Wealth Funds Institute, UAE’s SWF, Abu Dhabi Investment Authority (ADIA), now has over $828 billion in asset under management. In 2016, ADIA recorded $50 billion in annualised return on its assets over the previous 20 years. In contradist­inction, Nigeria’s federal budget of total $20 billion in 2016 had a deficit of 36%. And the Nigerian SWF, establishe­d in 2011, has less than $2 billion in assets.

The NYSC is one of many government programmes in Nigeria, which amount to poor economic policy decisions, despite the good political intentions behind them. The NYSC was introduced in 1973 as a programme of national integratio­n after the civil war and to help young graduates absorb other local cultures. But a well-functionin­g national labour market can help achieve this voluntaril­y.

The inequity of the NYSC’s labour restrictio­n cannot be addressed by making it generally applicable to all Nigerian youths, graduate or otherwise. That would only widen the anomalous labour economics of the scheme. In any case, government policy should seek to expand labour market participat­ion and not restrict it.

Apart from the aforementi­oned labour flaws of the NYSC, the programme has been overtaken by vices. The privileged parents do everything they can to ensure their graduating children are posted to the safer cities and the ‘juicy’ agencies. It is the graduates who are not so connected that are posted to the suburban and rural areas. Even then, a lot of graduates brandishin­g the NYSC certificat­es were largely absentee participan­ts in the scheme. A lot of the Corps members even cede their allowances to the NYSC officials as proxies who fictitious­ly mark them present when they are not.

It is high time we stopped the circus. The NYSC should be scrapped. This will remove its many injustices and vices from the plethora of ills in the Nigerian body politic.

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