The proposed intervention of the Federal Government to alleviate the impact of fuel subsidy removal on common Nigerians has attracted a series of criticisms. This is hinged on the disbursement methodology via direct cash transfer.
There are views pointing to the inability of the cash transfer to make a positive impact amidst the huge gap between the current purchasing power of the masses and the proposed N8, 000 monthly disbursement for 12 million vulnerable households in Nigeria for a period of six months. To achieve the desired result, there are better ways of applying this fund, as depicted below.
Palliative Approach: Cash and In-Kind, e.g., local transport System
Out of the earmarked N500 billion, 70% should go for Cash Voucher Assistance (CVA), while the remaining N150 billion ought to be invested in the procurement of buses for local transport across 774 local governments. This might appear inadequate; however, Governors across the 36 states can make up the gap to complement the federal government's effort. The cash distribution should be a transfer to enable them to invest in their field of endeavor.
Selection Methodology: The likely bet is to use local NGOs’ existing data or involve those in the data collection process on a voluntary basis in collaboration with the local chief, Emir, ward leaders, local government council, and Bureau of Statistics for data collection and data cleaning for the targeted categories above. For the sake of equity and fair play, no single state will be left out of the scheme, including FCT.
Vehicular Distribution Model: Use of Local NGOs with a Wide Network in Collaboration with Relevant Government Agencies
Proposed Targeted Beneficiaries: N350 billion to be earmarked
Market Women and Petty traders (N70 billion) target 1.4 million beneficiaries (N50,000 each).
Artisan: N70 billion; target: 1.4 million beneficiaries: N50,000 each
Undergraduates at Public Universities: N70 billion; target 1.4 million beneficiaries: N50,000 each
Rural Farmers: N70 billion; target 1.4 million beneficiaries: N50,000 each
People with disabilities: N70 billion; target 1.4 million beneficiaries: N50,000 each