Financial expert questions Tinubu’s plan to transfer N8,000 to 12 Million poor households

By Seun Johnson

Criticism and controversy have surrounded Nigerian President Bola Ahmed Tinubu’s plan to transfer N8,000 to 12 million poor households for a period of six months.

The president’s proposal, announced by his Special Adviser on Communication and Special Duties, Dele Alake, has faced scrutiny over the past three days.

Tinubu’s intention behind the transfer is to alleviate the adverse effects of fuel subsidy removal on vulnerable Nigerians. He plans to allocate N500 billion from the approved N819 billion 2023 supplementary budget for this purpose, ensuring that each family receives N8,000 per month for six months.

The transfers will be conducted digitally for transparency and accountability, with the president believing that the monetary assistance will positively impact around 60 million individuals.

However, the plan has faced significant criticism from economists and financial analysts who view it as a misallocation of resources. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE) and former Director General of the Lagos Chamber of Commerce and Industry, expressed his concerns about poor data collation in Nigeria, citing it as a major obstacle to the success of such an initiative.

Dr. Yusuf highlighted the abuse and mismanagement of similar conditional transfers by the Ministry of Humanitarian Affairs under the previous government.

Instead, he proposed deploying the funds to the transportation sector by importing mass transit buses to distribute across the states and Federal Capital Territory. This would alleviate the rising cost of transportation, which has significantly impacted the savings of Nigerians since the removal of fuel subsidies.

Additionally, Dr. Yusuf advised the president to address the cost of agricultural commodities and find ways to make food prices more affordable for the people. He believes that resolving these two pressing issues would alleviate the burden placed on Nigerians due to the removal of fuel subsidies.