An economist cautions Tinubu against giving N8000 to needy Nigerians

Gbenga Adeoye, a financial expert, has urged President Bola Tinubu to stop his administration’s plan to give N8,000 to 12 million needy Nigerians over the course of six months.

Recall that the President on Thursday asked the National Assembly for N500 billion to be donated to the needy Nigerians as a palliative to lessen the effects of the elimination of fuel subsidies.

In the letter, Tinubu detailed how his administration will give N8,000 per month to 12 million low-income households, which would benefit an additional 60 million people.

Adeoye, however, informed the President in a furucinovel interview that the planned distribution of N8,000 would not be adequate to mitigate the effects of the subsidy reduction.

Adeoye stated, “I have been disturbed by the plan of the Tinubu government to give N8,000 cash palliative to 12 million poor Nigerians for six months,” alluding to the fact that Tinubu was prepared for the position owing to the measures he performed shortly after assuming office.

The Chartered Accountant stated that N8,000 to 12 million Nigerians will equate to N96 billion every month and N576 billion in six months, which is why the cash palliative should be avoided.

Cash palliative is not appropriate for nations that have not yet reached their optimal output levels, but it is beneficial for nations whose citizens are not allowed to work outside the home. As an illustration, he cited the United States of America, where cash was provided during the COVID-19 Restrictions because individuals were unable to go about their daily business.

The tax expert’s proposals included the Federal Government purchasing 200 buses for each senatorial district at a cost of N30 million each, with the emphasis that 22,200 buses would cost N666 billion in total.

“If given to the right stakeholders to handle, this will lower the cost of transportation.

“Make sure it receives routine maintenance, operate it like a business, but set the price based on location. Make tickets for each month available. USE card over time, similar to the UK’s OYSTER Card.

Make sure there are savings from the money the buses bring in so you can replace them in five years. No politician shall ride the bus for free.

All Nigerians would profit from this, he said, as the majority of people will no longer be concerned about the high price of gasoline.

The attorney also advised awarding 600,000 entrepreneurs N1,000,000 so they can start small enterprises and hire four more Nigerians.

“The money,” he stated, “should be paid back over a period of 10 years at a maximum rate of 2 or 5 percent and if possible, at no interest since N576bn proposed by Federal Government is a free gift anyway.”

According to Adeoye, this will generate 3 million direct and indirect jobs.

He expressed additional worries about the proposed N8,000 palliative and questioned, “How do we identify the poor Nigerians? How can we make sure the spread is nationwide? What can N8,000 accomplish each month?

The UK Arbitrator stated, “In my opinion, such step would not remedy the poverty problem or the misery brought on by the elimination of the fuel subsidy.

“Giving N8,000 a month is equivalent to giving N266.67 a day. If it is anticipated that the so-called poor will eat three meals a day, this will not result in the desired outcome because it entails giving less than N90 per meal.

“The worst thing about cash palliative is that people go back to where they were at the end of the program, which can lead to unrest and further chaos after six months.

Finally, I urge the President to refrain from disbursing the N576 billion in cash palliative. The amount is too high for such, and the two alternatives listed above will have a greater positive impact than giving 12 million Nigerians N266.67 each day.