The Federal Government’s plan to pay N8,000 monthly to 12 million low-income households for six months has been met with criticism and disbelief by many Nigerians.
The scheme, which is part of the $800 million loan request from the World Bank, is aimed at mitigating the impact of the fuel subsidy removal that has triggered a surge in the prices of essential goods and services.
President Tinubu, in a letter to the National Assembly, said the cash transfer program would stimulate economic activities in the informal sector and improve the living standards of the beneficiaries.
He added that the money would be transferred directly to the beneficiaries’ accounts and mobile wallets to ensure transparency and accountability.
However, many Nigerians are not convinced that the program would achieve its objectives, given the high inflation rate and the low purchasing power of the naira. They argue that N8,000 is too meagre to make any meaningful difference in the lives of the poor and vulnerable, especially in the face of rising food prices, transportation costs, and other expenses.
A market survey by Newsflash Nigeria in Abuja showed that a bag of garri, a staple food item, now sells for N22,000, up from N8,000 a few months ago. Similarly, a bag of rice now goes for between N35,000 and N44,000, depending on the brand and quality. The traders blamed the hike in food prices on the increase in fuel price, which has affected their transportation and production costs.
The fuel price hike was a result of the government’s decision to remove fuel subsidy, which it said was unsustainable and draining the nation’s resources. The president had announced the removal of subsidy in his inaugural speech on May 29, saying that the government could no longer afford to pay for it.
Following the announcement, the Nigerian National Petroleum Company Limited (NNPCL) approved an upward review of the pump price of petrol from N194 to as high as N557 across the states and the FCT. This led to a ripple effect on other sectors of the economy, as transporters increased their fares and manufacturers passed on their increased costs to consumers.
To cushion the effects of subsidy removal on Nigerians, President Tinubu sought and obtained the approval of the National Assembly to borrow $800 million from the World Bank. Out of this amount, $480 million would be used to fund the cash transfer program for 12 million households for six months.
The move has generated mixed reactions from stakeholders, who have expressed doubts about the feasibility and effectiveness of the program. Some have questioned how the government would identify and verify the beneficiaries, while others have wondered how long the program would last and what would happen after six months.
Some have also suggested that instead of giving out cash handouts, the government should invest in infrastructure, education, health care, and other sectors that would create jobs and opportunities for Nigerians.
Meanwhile, some Nigerians have expressed support for the cash transfer program, saying that it is a welcome development that would help the poor and vulnerable cope with the economic challenges. They urged the government to ensure that the program is transparent, fair, and inclusive.
One of them, Mr. John Okafor, a civil servant in Abuja, said that he was happy to hear about the plan, as he hoped to benefit from it. He said he had been struggling to feed his family of five since the fuel price hike, as his salary could barely cover his expenses.
“I am happy to hear that the government wants to give us N8,000 every month for six months. It is better than nothing. At least, it will help me to buy some food items and pay for transport. I hope they will not forget people like us who are working but earning little. We are also suffering from this subsidy removal,” he said.
Another supporter of the plan, Mrs. Aisha Musa, a petty trader in Lagos, said she was optimistic that the program would boost her business and income. She said she had been finding it hard to buy and sell goods since the fuel price hike, as her profit margin had reduced drastically.
“I am happy that the government wants to help us with N8,000 every month. It is a good thing. It will help me to buy more goods and sell at a reasonable price. I hope they will not discriminate or cheat us. They should give us the money as they promised,” she said.
The cash transfer program is expected to commence in January 2024, after the World Bank approves the loan request. The government has assured Nigerians that it would work with relevant agencies and stakeholders to ensure that the program is implemented effectively and efficiently.
