Novus Agro

The Problem

Insufficient jobs: In the second quarter of 2020, Nigeria’s unemployment rate came in at 27.1 which is the highest on record. 14.2% of this unemployed population are youth. Youth unemployment rates are often higher than overall unemployment rates. The employment to population ratio for Nigeria was 48.5 % in 2020 and this employed population includes youths, the elderly, etc. It fell gradually from 57.7 % in 2001 to 48.5 % in 2020. Nigeria’s Youth Unemployment Rate is projected to reach around 44% in 2021 and 45% in 2022.

Lack of business set-up funds: This is another reason why Nigerian youth are not fully into business. Every business requires start-up capital, sourcing for business capital can be a bit difficult and this has led many youths to bury their business ideas. For most youth, access to entrepreneurial training such as tailoring, computer, shoemaking, etc., is been hindered by access to capital to establish their own after the training.

Lack of proper education or qualification for job: Out of the 10 million applicants to Nigerian tertiary institutions, only 26% gained admission between 2010-2015. Around 10.5 million children are out-of-school—the largest number globally. Nigeria’s educational system is lacking in ned admission between 2010-2015. Around 10.5 million children are out-of-school capacity, this has created a deficit in the quality of Nigeria’s education system. The nation’s education system fails to equip learners with skills needed for employment. The curriculum of most tertiary education programs in Nigeria lacks entrepreneurial content that would have enabled graduates to become job creators rather than job seekers. It is painful to admit that the better part of Nigerian graduates cannot be effective competition for their colleagues from other parts of the world.

The Solution

Creating jobs: We want to create 1000 jobs in 2021 for youth with a focus on women. These direct 1000 jobs will create a minimum of 500 indirect jobs in 2021 as the GrainPoint outlet managers can decide to employ assistants or set up another GrainPoint outlet in another approved location (a franchise).

Start-up funds & training: The GrainPoint project will facilitate digital and entrepreneurial training for youths before being selected as an outlet manager. Start-up funds and materials are provided for each GrainPoint outlet manager. The outlet manager realizes income from the agency banking service, commodity aggregation service, agricultural extension service, and retail of consumer goods and farm inputs.

Entrepreneurial & digital skills: The GrainPoint project will train youths on entrepreneurial and digital skills to enable them to compete equally with youths from other parts of the world.

Additionality 

Scale: with CFYE funding the GrainPoint Digital outlets project will scale faster and reach a wider area coverage in Nigeria. A greater number of youths will benefit from the employment created by The GrainPoint Digital Outlets

Timing: with the CFYE funding the GrainPoint Project will be delivered and executed in time due to the availability of all necessary resources both in cash and in-kind.

Specific Area or Group: the GrainPoint Project is focused on empowering women in rural areas and with CFYE grant, more women will be reached and empowered with skills and opportunities for decent work that delivers better prospects for personal development, is productive, and offers a stable income, social protection, and safe working conditions.

Quality: the quality of the output will be the same with or without CFYE grant but the number of youths empowered with decent jobs will be less and scalability with happen at a slower pace.

Innovation: presently the agency banking business model is in use in Nigeria but there is no company that has all the components of the GrainPoint Digital Outlets all in one platform and outlets.