By Aliyu Nuhu
Can ₦8000 given over a period of 4 months solve poverty or alleviate the sufferings of people imposed by withdrawal of petrol subsidy?
If 12million people are getting the money, what of the remaining 168 million poor Nigerians? What will be the selection criteria. Sometimes you wonder at the quality of the thinking of our leaders.
Who sold this idea to president Tinubu?
To solve poverty you have to create business opportunities and provide loans. That was how China created wealth among its people. Loans were given with defaults in mind on self recognition only. No penalty for delinquency or business failure. Definitely some businesses will fail but many will succeed. China gave tax holidays to business startups and subsidized electricity and wages.
Brazil reduced poverty by reduction of inequality through equitable wealth redistribution programs. It did not only focus on economic growth, but accompanied this growth with active social policies for redistribution. The end results, economic growth led to better living standards for much of the population, through better wages and social transfers. Brazil gave family scholarship, business loans and huge minimum wages.
Egypt has long had a cash transfer/social assistance programme (maash al-daman al-igtimai), a program of the Ministry of Social Solidarity that reaches approximately 1.5 million households unable to work and uncovered by any other social insurance scheme. This mainly includes widows raising children, the elderly and the disabled.
In addition, two new cash transfer programs were launched in 2015. Karama (dignity) which provides an individual monthly allowance of LE320 for the elderly and those with severe disabilities. Takaful (solidarity), a conditional cash transfer program disbursed quarterly, which offers poor families with children who are younger than 18 a monthly allowance of LE325 and additional sums of LE60, LE80 and LE100 per child in primary, secondary or high school respectively, on condition of regular attendance. These programs, launched in early 2015 in some of the poorest villages in Upper Egypt, now reach almost 160,000 beneficiaries, with plans for geographic and quantitative expansion. Unlike Nigeria, the monies were not diverted and it surely reached the intended targets because of government sincerity of purpose.
It is not just about announcing unimplementable programs with no results in sight. Government must think deep and look at what other countries are doing. We cannot reduce poverty while at the same time imposing 7.5% tax on petrol and increasing price of electricity. We cannot end hunger, the bigger factor in poverty while banning importation of food that we don’t produce enough or closing borders. We cannot address inflation when we unleash extortion gangs on the highways collecting bribes from trucks that distribute goods to our cities.
It is as if Tinubu did not understand Nigeria and did not prefer or intend to govern it.