Palliative: Financial expert warns Tinubu against sharing N8,000 to poor Nigerians

Gbenga Adeoye, a financial expert, has requested President Bola Tinubu to halt his government's proposal to donate N8,000 to 12 million underprivileged Nigerians in six months.

Remember that the President requested N500 billion from the National Assembly on Thursday, ostensibly to be delivered to impoverished Nigerians as a palliative for the loss of gasoline subsidies.

Tinubu indicated in the letter that his government would give N8,000 per month to 12 million poor and low-income households, with a multiplier effect of around 60 million people.

However, Adeoye informed the President in an interview with a news source that the projected N8,000 distribution would not be enough to offset the effect of subsidy elimination.

Adeoye, however, said “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.”

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

“Cash palliative does not befit a country that has not reached optimal production level, it is good in a country that has attained optimal production level but the people are restricted from going out to work. An example of such is the United States of America where cash was distributed during COVID-19 Restrictions because people could not go out to perform their economic activities,” he explained.

The Tax expert recommended that the Federal Government acquire 200 buses each senatorial district at N30 million per bus, emphasizing that N666 billion will be spent on obtaining 22,200 buses.

“This will reduce the cost of transportation if handed over to relevant stakeholders to manage.

“Ensure regular maintenance and run it as a pure business but regulate the rate based on locations. Make monthly tickets available. USE card over time like in OYSTER Card in the UK.

“Ensure there are savings from the income generated from the buses to be able to replace them after five years. Let no politician use the bus for free.

“All Nigerians will benefit from this as most people will no longer have to worry about the high cost of petrol,” he stated.

The lawyer also proposed granting N1,000,000 to 600,000 entrepreneurs who will run small businesses and employ four other Nigerians.

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

Adeoye informed that this will create 3 million direct and indirect employment.

Expressing further concerns about the planned N8,000 palliative, he asked: “How do we determine the poor Nigerians? How do we ensure the spread across the country? What will N8,000 do monthly?”

The UK Arbitrator said, “In my considered opinion, that move will not solve the poverty problem and hardship arising from fuel Subsidy removal.

”To give N8,000 per month is to give N266.67 per day. This will not produce the desired result as it means giving less than N90 per meal if it is assumed that the so-called poor will eat three times daily.

“The worst aspect of cash palliative is that people return to their level at the end of the programme, and that will cause more havoc after 6 months and can lead to unrest.

“Lastly I repeat, Mr President, please do not give out a cash palliative of N576b. The amount is too much for such and the two alternatives enumerated above will have better impact than N266.67 per day to 12 million Nigerians.”