The micro-credit scheme is aimed at assisting those in NLNG’s host communities, who cannot raise funds to start business. It is meant to provide start-up credit facilities for this category whose propensity to save is low. This scheme has a distinct advantage of creating jobs in the informal sector with its multiplier effects. It also promotes banking habits, since it focuses on mobilising savings and linking it to credit. The scheme also produces strong, credible and accountable leaderships at the village level, as members are chosen on trust, based on known history and proven integrity.
To manage this programme, NLNG contracted the Community Development Foundation (CDF) and a bank to operate the scheme. CDF is a mentoring organisation with the objective of formalizing the traditional village-level banking culture in a manner that is transparent, accountable and verifiable. The bank warehouses, disburses and manages the funds.
In the just concluded first phase of the Micro Credit Scheme, over N110million was disbursed to 248 groups, out of which N67 million representing 78% of due loans have been recovered. In the second phase, it is planned to scale up the level of financial and non financial support through partnership with and linkage of the participants to other micro finance service providers.
Youth Empowerment Scheme (YES)
The Youth Empowerment Scheme, (YES), is a sustainable development initiative of the company. The scheme targets youths in the host communities. It is designed to encourage them to acquire skills through specific technical training. Launched in October 2004, YES promotes self-employment, small-scale businesses and economic empowerment. Trainees receive a monthly allowance for transportation and sundry needs. It is open to unemployed youths between the ages 18 and 25 years. Successful applicants are attached to accredited training centres for hands-on training in the following vocations:
- Basic Computer Training, Applications and Maintenance;
- Photography and Video Production;
- Catering;
- Hairdressing and Cosmetology;
- Fashion Designing and Sewing;
- Welding and Fabrication;
- Horticulture and Landscaping;
- Woodwork and Carpentry.
The scheme is structured in three phases. The first phase is the acquisition of vocational skills. In the second phase, the youths undergo leadership and citizenship training for attitude re-orientation and the inculcation of entrepreneurial skills. This takes place at Leadership Training Centre, Aluu, Port Harcourt. The final stage is the graduation where the youths are provided with Starter Packs.
The Starter Packs are tools in different trade areas and a small start-off capital to help the graduates start their businesses. For instance, those in computing go home with a complete computer system comprising a monitor, CPU, printer and UPS. Those in welding receive 200 amps voltage welding machines. About 78 of the 108 youths undergoing training under the scheme graduated in November 2005. To complement YES, the company has embarked on skills acquisition and capacity building for indigenous businesses through training, seminars and micro-credit administration. The skill acquisition scheme is to create a crop of employers of labour, who will transfer the skills they have acquired to others.
