A financial expert, Gbenga Adeoye, has asked President Bola Tinubu to quench the plan by his government to distribute N8,000 to 12 million poor Nigerians in six months.
Recall that the President, on Thursday, requested N500 billion from the National Assembly, supposedly to be distributed to poor Nigerians as palliatives to cushion the effects of the fuel subsidy removal.
In the letter, Tinubu explained that his government would transfer N8,000 a month to 12 million poor and low-income households with a multiplying effect on about 60 million individuals.
But Adeoye, in an interview with DAILY POST, told the President that he would not be able to cushion the effect of subsidy removal through the planned distribution of N8,000.
While alluding to the fact that Tinubu was prepared for the job due to the actions he took immediately after he assumed office, 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.”
Explaining why the cash palliative should be avoided, the Chartered Accountant said that N8,000 to 12 million Nigerians will amount to N96 billion a 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.
In his recommendations, the Tax expert suggested that the Federal Government acquire 200 buses per senatorial district at N30m per bus, stressing that N666 billion would be spent on acquiring 22,200 buses.
“This will reduce the cost of transportation if handed over to relevant stakeholders to manage.