The recent announcement by Mr. Wale Edun, the Federal Minister of Finance and Coordinating Minister of the Economy that about 4.3 million Nigerians have received direct cash transfers from the Federal Government may be cheering to the beneficiaries, but it is a far cry from the real needs of Nigerians. It is paradoxical in the sense that while the action is meant to provide short-term relief to vulnerable Nigerians, it is unlikely to address the real issues confronting the economy which revolves around providing a conducive environment for businesses to thrive.....CONTINUE READING THE ARTICLE FROM THE SOURCE
It is important therefore that government focuses more on measures that will aim at addressing the needs of the ordinary Nigerian. Nigerians need more than palliatives to survive. They need long-term solutions to address the very serious challenges they are currently going through in their quest to earn a living for themselves and their families.
Edun said one million citizens were reached in the last few weeks, while the target is to transfer cash to one million vulnerable Nigerians each month. The minister spoke on a business programme on national television during which he outlined the Federal Government’s comprehensive plan to address the current economic challenges.
He said the government was expanding its cash transfer programme to support the poorest and most vulnerable. The programme, he said, had reached 4.3 million people, with plans to increase this number rapidly.
There is little doubt that in a country where millions are very poor and cannot afford even a little capital to set up small-scale businesses, direct cash transfer may go some way to empower them. It is no gainsaying that, even in the harsh business climate prevailing in the country, many Nigerians can hardly raise as little as N100,000 to kick-start a business. If the government’s direct cash goes to some of those people, it can make a huge difference in their lives, and this may provide short-term relief to the poor in the country.
However, providing temporary assistance to 4.3 million out of several millions of vulnerable Nigerians is still far from the significant impact desired for Nigerians. The government must strive to do better than this, given that it is better to teach people how to fish than to give them fish, as the saying goes.
The 2022 National Bureau of Statistics survey report indicates that about 63 per cent of persons living in Nigeria or 133 million persons are multi-dimensionally poor. Most certainly, that number could have increased significantly since May 2023 when the Tinubu administration took office and when major policy pronouncements on fuel subsidy removal and foreign exchange market harmonisation were made. Since then, the Nigerian economy has not experienced stability and more Nigerians, above the NBS figure of 133 million have since joined the ranks of multi-dimensionally poor persons. Most average Nigerians barely have enough to feed themselves.
Moreover, what the ordinary Nigerian needs is not government “handouts”. The average Nigerian is hardworking and very industrious. With a good operating environment, the average Nigerian will be able to feed himself and his family very well. Is it any wonder that Nigerians go abroad and thrive given the enabling environment they find in the host countries? Even Nigerians in retail trade or mini-industrial activity with some measure of value addition thrive even in the West African sub-region. The key to addressing the economic challenges is to open up the economy.
Addressing the inhibiting factors to productive activities either in the agricultural, industrial or service sectors of the economy is the way to go. For example, in the agricultural sector, the government needs to address the insecurity challenge farmers are confronted with. This so-called farmers-herders clash or put rightly, the incessant invasion of farmlands by itinerant herders needs to be addressed. Food production has dropped significantly and of all the inflation categories, food inflation is highest. This affects both food crops and cash crops.
The industrial sector is also seriously damaged by the very high exchange rate and unfavourable physical infrastructure in the country. That affects production, job creation and reduction of inflation. Is it the services sector of the economy that is faring any better? Small-scale service providers have challenges in accessing credit for their businesses in addition to the security challenges they face often. Even unemployed youths who resort to driving charter vehicles like UBER among others, to earn a living for themselves and their families have challenges with security. A lot more can be done by the Tinubu administration to open up the economy for business so that the vast majority of Nigerians can take care of themselves.
With that highlighted, it is proper to ask some pertinent questions on this government palliative dispensing or cash transfer moves. First, it is hoped that the government would expand this reach to beyond 4.3 million Nigerians, as a short-term measure promised by the Minister where effort is supposedly being made to target about one million Nigerians per month. Second, is there verifiable documentation on the supposed beneficiaries of this government largesse? There is a need to address the issues of corruption in the management of the cash transfer scheme. At the same time, is somebody monitoring the use to which the funds are being put by the lucky Nigerians who received them? This is important to prevent a situation whereby the funds are misused or diverted, thus defeating the very essence of the government’s action.
Above all, the Tinubu administration needs to prove to Nigerians that it means well in the management of the economy. One clear way it can do that is to cut down drastically on the cost of governance. Presently it is yet to do that and Nigerians need this assurance speedily.
