Federal Government Proposes Comprehensive Overhaul of NYSC with N2 Billion Innovation Fund

Federal Government Proposes Comprehensive Overhaul of NYSC with N2 Billion Innovation Fund

  • The federal government has unveiled plans to reform the National Youth Service Corps (NYSC), introducing a ₦2 billion Innovation Fund to modernise the 52-year-old scheme
  • Officials said the overhaul would align corps deployment with national manpower needs in sectors such as health, education, agriculture and the digital economy
  • Stakeholders emphasised that the reforms aim to make the NYSC fiscally sustainable, digitally enabled and better equipped to prepare graduates for job creation

The federal government announced plans to overhaul the National Youth Service Corps (NYSC), introducing a ₦2 billion Innovation Fund as part of a wider reform package.

Officials said the initiative was designed to make the 52-year-old scheme more relevant to Nigeria’s youth and the demands of a modern economy.

Nigeria unveils ₦2bn NYSC Innovation Fund to modernise the 52-year-old scheme, align corps deployment with national manpower needs, boost digital skills, entrepreneurship, and fiscal sustainability.
FG launches ₦2bn NYSC Innovation Fund to modernise scheme and boost youth skills. Photo credit: NYSC1ng/x
Source: Twitter

Speaking at a stakeholder forum, Special Adviser to the President on Policy and Coordination, Hadiza Bala Usman, said the NYSC Act, last reviewed in 1993, was no longer fit for purpose.

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According to Daily trust, she explained that diagnostic and institutional reviews had revealed “legal, operational and fiscal gaps” that must be closed to secure the future of the scheme.

“The NYSC cannot run on a 1993 framework in a 2025 economy,” she said. “We must redesign it to be modern, fiscally sustainable, digitally enabled, and aligned with sectoral manpower needs.”

Innovation fund to support digital systems, skills

Bala Usman stated that the current financing model, heavily reliant on federal allocations, was “fragile and unsustainable.” She said the proposed ₦2 billion Innovation Fund would support digital systems, skill acquisition, seed grants and governance reforms.

She added that the reform plan included a three-tier governance structure at national, state and local levels, decentralised funding, and a sector-aligned deployment model. Corps members would be posted into priority areas such as teaching, healthcare, agriculture, the digital economy, climate resilience and public infrastructure.

Youth ministry highlights corps members’ role in service delivery

The Minister of Youth Development, Ayodele Olawande, described the NYSC Reform Initiative as a product of multi-agency collaboration involving his ministry, the Ministry of Education, the Nigeria Institute of Policy and Strategic Studies and other stakeholders.

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He emphasised the importance of corps members in sub-national service delivery, noting their contributions to education, healthcare and digital literacy. Olawande said misplaced postings had denied the country the full value of its skilled graduates.

“We don’t want corps members to leave service and immediately go searching for jobs,” he said. “We want them to be job creators, or to return to the labour market with marketable skills.”

He explained that the draft framework would address placement gaps, institutionalise post-service credit access for entrepreneurs, and ensure corps members were deployed in line with their training and national manpower needs.

NYSC projects surge in graduate mobilisation

NYSC Director-General, Brigadier-General Olakunle Oluseye Nafiu, said the scheme currently mobilises about 400,000 corps members annually, compared with 2,364 in 1973. He added that projections from 419 core-producing institutions suggested that 650,000 locally trained graduates may seek service next year.

He acknowledged persistent misunderstandings about funding at state level and said the NYSC would “open records” and strengthen partnerships with states on infrastructure and orientation to ease pressure on federal resources.

“Many states rely on corps members to plug manpower gaps,” he said, adding that the NYSC would work with states to better plan and absorb graduates.

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Technology and talent central to NYSC reform

Dr. Kashifu Inuwa, Director-General of the National Information Technology Development Agency (NITDA), said technology and talent were central to the reform. He noted that NITDA had trained 12,211 NYSC champions who had in turn taught over 400,000 Nigerians basic digital skills.

He explained that NITDA was using the NYSC platform to incubate youth startups, provide seed funding and pilot AI solutions developed by corps members.

“We need to co-design reforms with the youth,” he said. “Training must convert to enterprise and job creation.”

Next steps for NYSC reform

Bala Usman said the reform proposal also envisaged a sector-aligned COP+ stream model, improved welfare and safety measures for corps members, and phased delivery of digital infrastructure to integrate mobilisation, posting, payment and monitoring.

She confirmed that final recommendations from the consultative forum would be forwarded to the Federal Executive Council and then to the National Assembly for legal amendments.

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Speaking with Legit.ng, AbdulRasheed Hussain, a policy analyst based in Nigeria, shared what federal government’s planned reforms and ₦2 billion Innovation Fund reveal about the future of the NYSC:

“The federal government’s plan to reform the NYSC with a ₦2 billion Innovation Fund is a timely step but its success will depend on execution. Aligning corps deployment with manpower needs in health, education, agriculture, and the digital economy could transform the scheme from a symbolic rite of passage into a driver of national development. However, past reforms have often faltered due to poor implementation, corruption, and lack of accountability. Updating the outdated NYSC Act is crucial but reforms must also ensure transparency, sustainability, and genuine opportunities for graduates. Otherwise, the initiative risks becoming another unfulfilled promise.”
Nigeria unveils ₦2bn NYSC Innovation Fund to modernise the 52-year-old scheme, align corps deployment with national manpower needs, boost digital skills, entrepreneurship, and fiscal sustainability.
Stakeholders say the NYSC overhaul would create job-ready graduates through skill acquisition and digital economy integration. Photo credit: NgNYSC/x
Source: Facebook

NYSC mobilisation tied to final year project submission

Legit.ng earlier reported that President Bola Ahmed Tinubu approved a sweeping reform that ties the National Youth Service Corps (NYSC) mobilisation process to the National Policy for the Nigeria Education Repository and Databank (NERD).

The directive, which was conveyed through a circular issued by the Secretary to the Government of the Federation, Senator George Akume, is set to take effect from 6 October.

By invoking Sections 2(4)(4) and 16(1)(C) of the NYSC Act, President Tinubu mandated that no graduate, whether from a Nigerian or foreign institution, would be mobilised for or exempted from NYSC without proof of compliance.

Proofreading by Funmilayo Aremu, copy editor at Legit.ng.

Source: Legit.ng

Authors:
Basit Jamiu avatar

Basit Jamiu (Current Affairs and Politics Editor) Basit Jamiu is an AFP-certified journalist. He is a current affairs and politics editor at Legit.ng. He holds a bachelor's degree from Nasarawa State University (2023). Basit previously worked as a staff writer at Ikeja Bird (2022), Associate Editor at Prime Progress (2022). He is a 2025 CRA Grantee, 2024 Open Climate Fellow (West Africa), 2023 MTN Media Fellow. Email: basitjamiu1st@gmail.com and basit.jamiu@corp.legit.ng.

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