FG Disburses N44,000 Arrears to Ex-Corps Members as NYSC Allowance Adjustment Takes Effect

FG Disburses N44,000 Arrears to Ex-Corps Members as NYSC Allowance Adjustment Takes Effect

In a move aimed at fulfilling its commitment to Nigerian youth, the Federal Government has started disbursing ₦44,000 in arrears to former National Youth Service Corps (NYSC) members. These payments are being made to corps members who completed their service before the formal rollout of the revised NYSC monthly stipend.

The disbursement process began earlier this week and has already reached a number of beneficiaries nationwide. Many former corps members confirmed receiving the funds via posts and testimonials shared on social media platform X (formerly known as Twitter), indicating that the payments are gradually being credited across various states.

Arrears Target Those Who Served Before Full Implementation

The ₦44,000 disbursed represents the shortfall in monthly stipends due to NYSC members who concluded their one-year mandatory service before the federal government commenced payment of the newly approved allowance of ₦77,000. These individuals had served under the previous allowance regime of ₦33,000 per month, which was discontinued after the government approved an increase in 2024.

The raise in stipends was triggered by broader economic reforms that saw the national minimum wage raised from ₦30,000 to ₦70,000, following the passage of the National Minimum Wage (Amendment) Act, 2024. The NYSC, being a federally administered program, was included in the wage adjustment, with the monthly stipend for corps members increased by over 130%.

Timeline of Approval and Delayed Implementation

Although the new NYSC allowance was officially approved in September 2024, as confirmed in a circular issued by the National Salaries, Incomes and Wages Commission (NSIWC) and signed by its chairman, Mr. Ekpo Nta, the government was unable to begin payments immediately.

Actual payment of the ₦77,000 monthly allowance only commenced in March 2025, creating a six-month lag between policy approval and implementation. This delay, according to the Minister of Youth Development, Ayodele Olawande, stemmed from budgetary challenges and the need to undergo comprehensive administrative processing.

Minister Olawande clarified that while the approval had been secured, the National Assembly had not yet appropriated the necessary funds to accommodate the increment within the NYSC budget. As a result, corps members who served between July 2024 and February 2025 missed out on the higher allowance during their service year.

Backlog of Payments Now Being Cleared

As part of the government’s efforts to uphold equity and ensure that no corps member is disadvantaged by the delay, the administration promised to settle all outstanding arrears. The ongoing ₦44,000 disbursement represents payment for this backlog, covering the months that fell between the approval of the new allowance and the actual commencement of payments.

By fulfilling this promise, the government is sending a strong message of accountability to its citizens, particularly the youth who are often at the center of national development programs. Many former corps members have welcomed the development, calling it a step in the right direction despite the initial delay.

Budgetary Provisions and Financial Commitment

The payment of arrears coincides with increased funding for the NYSC in the 2025 federal budget. The sum of ₦29.54 billion has been earmarked for NYSC operations during the fiscal year. This amount includes provisions for corps members’ welfare such as kits, transportation, and feeding, all of which are considered essential for the smooth execution of the scheme.

The allocation falls under the broader budget of the Federal Ministry of Youth Development and includes additional line items such as honorarium payments, publicity campaigns, sporting engagements, and upgrades to NYSC orientation camp facilities nationwide.

This significant financial commitment underscores the government’s intention to strengthen the NYSC, making it not only a youth development platform but also a contributor to national growth and service delivery in key sectors.

Reforms and Restructuring of the NYSC

Beyond financial commitments, the federal government is also embarking on institutional reforms aimed at reshaping the future of the NYSC. One of the key reform strategies involves the creation of specialized service units within the program. These new branches will focus on deploying corps members with relevant qualifications to rural communities in need of critical services—particularly in education and healthcare.

The goal is to bridge service delivery gaps in underserved regions by tapping into the skill sets of corps members, especially teachers, nurses, doctors, and other trained professionals. This targeted deployment is expected to improve the quality of life in these areas while also giving corps members practical, community-centered experiences.

To guide the broader modernization process, the federal government has proposed establishing a reform committee. This body will be tasked with reviewing all existing NYSC policies, engaging with stakeholders across the country, and developing new frameworks that reflect current realities and global best practices.

Youth Development at the Forefront

The various initiatives under the NYSC umbrella reflect the government’s growing emphasis on youth empowerment as a pillar of national development. With youth unemployment remaining a challenge, the NYSC remains a critical channel for skills development, civic engagement, and public service.

Minister Ayodele Olawande reaffirmed the government’s vision for an NYSC that goes beyond symbolic service. “We want our young people to see the NYSC year not just as a mandatory assignment, but as a transformative phase that prepares them for leadership and self-reliance,” he said during a recent policy roundtable.

Looking Ahead: A Renewed Commitment

As the disbursement of arrears progresses, public response remains cautiously optimistic. While many former corps members have praised the government for honoring its promise, others hope that future policies will be executed with greater efficiency and less delay.

Nevertheless, the commencement of the ₦44,000 arrears payment signals a renewed commitment by the federal government to uphold the welfare of Nigerian youths. When combined with increased budget allocations and forward-looking reforms, the current actions could mark the beginning of a stronger, more impactful NYSC scheme.

With continued transparency and political will, the NYSC may yet evolve into a model institution that not only nurtures Nigerian graduates but also drives meaningful change in communities nationwide.

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