In response to the palliative offered by the FG, Professor Uche Uwaleke, President of the Association of Capital Market Academics of Nigeria (ACMAN), stated that “This is rather a sub-optimal option.” The government ought to investigate alternatives to monetary aid as a potential palliative.
What can a family of four get for N8,000 in a month considering the rampant inflation rate that is now in effect (official estimates are understated)? In a country with a population of over 200 million people, this program is only intended for 12 million families, which equates to approximately 48 million individuals, assuming that those families are accurately targeted and that the National Social Register is accurate and kept up-to-date.
“The President is also seeking approval of a soft loan from the World Bank in the amount of 800 million United States dollars as a portion of funds to soften the impact of the termination of gasoline subsidies. If we add this N500 billion to the N600 billion that we already have (assuming that an I&E average rate of N750 will be applied to the facility provided by the World Bank), we should have N1.1 trillion.
“Consistent with the principle of maximum social benefit in public expenditure, one way, in my view, to ensure that this money reaches the grassroots is to divide it by 774 local government areas (LGA) in Nigeria, which translates to about N1.4 billion per local government, and transfer this sum to each Local government.” “Consistent with the principle of maximum social benefit in public expenditure, one way, in my view, to ensure that this money reaches the grassroots is to divide it by 774 local government areas.