The need for a multi-sectoral approach to poverty reduction in Nigeria
The recent pronouncement made by the Federal Government to recommence the disbursement of direct monetary transfers to the indigent and most susceptible citizens of Nigeria has elicited surprise and curiosity.
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, divulged this strategy during a retreat convened in Uyo, Akwa-Ibom State, articulating that the augmentation of the cash transfer program is intended to encompass a broader demographic grappling with the prevailing economic predicament.
The goal is to put more money directly in the hands of those who need it most, allowing them to prioritise their needs and alleviate poverty.
However, this announcement is perplexing considering that the same government previously claimed that the social register used for conditional cash transfers lacked credibility.
In June last year, the National Economic Council unanimously decided to abandon the national social register and urged states to create their own registers for cash transfers.
Governor Chukwuma Soludo of Anambra State explained that it was not feasible to digitally transfer money to the poorest individuals, most of whom did not have access to banking services.
It is puzzling to see the government now advocating for direct cash transfers again, especially after discrediting the previous system.
While the intention to provide financial assistance to those in need is commendable, it is crucial for the government to address the concerns raised about the credibility and effectiveness of such initiatives.
Additionally, the government must ensure that the implementation of the cash transfer scheme is efficient and transparent, utilising technology to streamline the process and reach the intended beneficiaries without any manual intervention.
Ultimately, the government’s commitment to alleviating poverty and supporting vulnerable Nigerians is commendable. However, it is essential for them to address the inconsistencies in their approach and ensure that the new cash transfer scheme is well-executed and reaches those who truly need it.
Professor Soludo, alongside Governors Bala Mohammed and Dapo Abiodun, emphasised the need for states to develop comprehensive registers solely for vulnerable individuals.
However, the identification of beneficiaries in villages proved to be a challenge, leading to the decision for states to create their own registers using a mix of formal and informal methods.
But what has changed since then? Has a new register been established? The government’s approach to determining beneficiaries remains unclear, leaving Nigerians in the dark. Has a new template been crafted and subjected to rigorous testing for integrity? Were key stakeholders involved in the development of this new template, if one exists? It appears that the government is scrambling to appease the public amidst mounting criticism of its policies, without implementing evidence-based interventions.
The suspension of cash transfers and social investment programs due to lack of impact and monitoring issues further underscores the need for transparency and accountability.
The government’s return to previous methods without addressing past shortcomings raises concerns. Simply doling out money without a strategic plan only serves as a breeding ground for corruption.
And now the government is returning to the same template of action without telling Nigerians how it has addressed the shortcomings identified earlier. In any case, we have always insisted that the idea of simply throwing money at Nigerians does not help in any significant way, apart from being an easy avenue for massive corruption.
The country’s lack of sufficient data poses a significant challenge, yet the government persists in attempting to create something valuable from this anomaly.
However, the government’s reliance on cash transfers as a solution indicates a lack of concrete understanding of the current state of the country. It seems that the government is grasping at straws, desperately searching for any action to present itself as working.It is reasonable to assume that the government may soon find itself overwhelmed by the problems associated with this return to the cash transfer template.
Once irrefutable evidence emerges of voodoo lists of beneficiaries and corruption, the government’s actions will be exposed. Instead of simply throwing money at the problem without any productive reason, the government should focus on reducing inflationary pressures in the economy and ensuring that Nigerians can engage in productive activities to create a dignified existence.
As the veil of secrecy surrounding voodoo lists and corruption is lifted, the government’s true colors will be unmasked. Instead of mindlessly showering money on the issue, devoid of purpose, it is high time the government shifted its focus towards curbing inflationary forces and empowering Nigerians to embark on fruitful endeavors, thus granting them a life of dignity.
The Nigerian populace yearns for urgent government intervention, but this intervention should take the form of crafting an environment that nurtures productivity, rather than succumbing to the allure of cash transfers and the all-too-familiar shadow of corruption.
In essence, let us envision a transformation where the government’s actions are laid bare, leaving no room for doubt. Let us move away from the reckless throwing of funds and instead concentrate on taming the inflationary beast, while simultaneously empowering Nigerians to partake in activities that foster a life of honour and purpose.
