Dr. Abejide B. Olusegun
The Federal Government of Nigeria’s plan to distribute +75,000 to 70 million citizens as part of its effort to alleviate economic hardship and hunger is an ambitious initiative. While the program, as announced by Hon.
Aliyu Audu, Senior Special Assistant to the President on Public Affairs, demonstrates a commitment to addressing poverty, its implementation must be meticulously designed to ensure its success. A well-intentioned initiative without proper structure may fail to achieve its intended goals. This article outlines critical conditions and mechanisms that must guide the disbursement of these funds to maximize impact and accountability.
The Case for Structuring the Disbursement as Loans
The first and foremost consideration for the government should be to avoid giving out the #75,000 as a grant or free money. While the intention to support vulnerable citizens is commendable, Nigeria’s history of financial mismanagement and dependency culture raises concerns. Free money often leads to frivolous spending, with little to no lasting impact on recipients’ economic stability. Experience shows that individuals at the lower economic strata often prioritize short-term pleasures, such as food and entertainment, over investments in productive ventures.
By structuring the funds as loans, the government can instill a sense of responsibility among beneficiaries.
Loans -offered with favorable conditions such as zero or low interest rates and a reasonable repayment period -encourage recipients to allocate the money toward productive activities. Such a system not only enhances accountability but also ensures that funds revolve back into the system to support more individuals.
The funds must be disbursed through reputable banks, requiring beneficiaries to complete formal applications that include detailed plans for utilizing the money.
Banks, as professional financial institutions, can track fund usage, enforce repayment schedules, and offer financial literacy programs to help recipients make informed decisions.
Avoiding State Government Involvement
One of the most significant risks to the program’s success is the potential involvement of state governments in fund distribution. Corruption and inefficiency have long plagued Nigeria’s governance structures, and allowing state governments to oversee the disbursement process is akin to inviting disaster.
History provides ample evidence of state officials diverting public funds for personal gain, leaving intended beneficiaries empty-handed.
To safeguard the integrity of the program, the federal government must bypass state governments entirely.
Instead, direct partnerships with banks and credible financial institutions will ensure transparency and efficiency. Furthermore, technology-driven solutions such as digital wallets or mobile banking apps can facilitate fund distribution, minimizing opportunities for corruption. Every disbursement should be traceable, with a robust system in place for auditing and oversight.
Focusing on Agriculture: A Path to Economic Revival
The allocation of these funds must align with Nigeria’s developmental priorities, particularly in agriculture.
Agriculture remains one of the country’s most critical sectors, with the potential to address food insecurity, create jobs, and boost economic growth. However, for decades, agricultural development has been undermined by inadequate investment, insecurity, and urban migration.
The government must prioritize farmers and individuals willing to engage in subsistence farming in rural areas.
These funds should not be directed toward those seeking to trade in agricultural produce in urban centers, as this would merely perpetuate the cycle of buying and selling without contributing to actual food production. By focusing on individuals committed to farming, the program can directly address hunger while revitalizing rural economies.
To ensure accountability, recipients should submit clear farming proposals outlining their intended use of the funds, including the crops they plan to cultivate, the equipment they need, and their strategies for addressing potential challenges. Banks or financial institutions overseeing the program could provide agricultural extension services and training, equipping beneficiaries with the skills and knowledge needed to succeed.
Tying Loans to Vocational and Technical Education
Tying Loans to Vocational and Technical Education
The government must also channel part of these funds into vocational and technical education, ensuring that recipients acquire practical skills with tangible economic benefits. Nigeria’s education system has long been criticized for prioritizing theoretical knowledge over practical application, leaving graduates ill-prepared for the job market. With rapid advancements in artificial intelligence (Al), robotics, and other technologies, the global economy increasingly demands specialized skills.
Investing in vocational and technical education aligns with Nigeria’s future needs. Recipients of these funds could be required to enroll in accredited programs focusing on medical and healthcare services, technical trades, ICT, and other high-demand sectors. Such initiatives would not only empower individuals to become self-reliant but also contribute to national
development by addressing critical skill gaps.
For instance, a portion of the funds could be allocated to train young Nigerians in sustainable farming practices, renewable energy technologies, or advanced manufacturing techniques. These fields offer immense potential for economic growth and job creation, enabling beneficiaries to contribute meaningfully to the economy while securing their livelihoods.
Rejecting Irrelevant Education Pathways
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In addition to promoting vocational and technical education, the government must reevaluate its support for certain academic disciplines. Resources should be redirected from theoretical and less marketable fields to areas that offer direct economic and social benefits.
While all forms of knowledge are valuable, the reality of Nigeria’s economic situation demands a pragmatic approach to education funding.
By tying financial support to programs with proven economic relevance, the government can ensure that public funds yield measurable returns. Students pursuing vocational, technical, and medical education should be prioritized, as these fields are less likely to be rendered obsolete by emerging technologies. This strategic focus will position Nigeria to remain competitive in the global economy while addressing domestic challenges.
Creating a Culture of Financial Responsibility
One of the program’s greatest challenges will be fostering a culture of financial discipline among beneficiaries. Many Nigerians lack experience with formal financial systems, and the sudden availability of funds could lead to misuse without proper guidance. To address this, the government should mandate financial literacy training as a prerequisite for accessing the funds.
Such training programs could cover topics such as budgeting, investment, and savings, equipping beneficiaries with the knowledge to manage their resources effectively. Banks and financial institutions could partner with non-governmental organizations (NGOs) and community groups to deliver these programs, ensuring widespread access and participation.
Moreover, loan agreements should include clauses specifying acceptable uses of the funds, with penalties for non-compliance. For example, funds designated for agriculture must be used exclusively for farming activities, with regular monitoring to ensure adherence.
This approach would deter misuse while encouraging beneficiaries to focus on productive ventures.
Leveraging Technology for Transparency and
Efficiency
The successful implementation of this program will depend heavily on the use of technology. Digital platforms can streamline the application and disbursement processes, reducing administrative bottlenecks and enhancing accountability. For instance, a centralized database could track all transactions, ensuring that funds reach the intended recipients without interference.
Mobile banking solutions, already widely used in Nigeria, could play a crucial role in delivering funds to beneficiaries in remote areas. By leveraging existing infrastructure, the government can minimize costs while maximizing reach. Additionally, blockchain technology could be explored to create tamper-proof records of all transactions, further enhancing transparency.
Ensuring Long-Term Sustainability
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While the immediate goal of this initiative is to alleviate economic hardship, its long-term success depends on its sustainability. The government must view this program not as a one-time intervention but as part of a broader strategy to promote economic resilience. This includes addressing structural issues such as insecurity, inadequate infrastructure, and weak governance that hinder development.
For example, enhanced security measures are essential to enabling farmers to access their land without fear of violence. Similarly, investments in rural infrastructure-such as roads, irrigation systems, and storage facilities
-would complement the funds by creating an enabling environment for agricultural productivity. By addressing these systemic challenges, the government can ensure that the program yields lasting benefits.
Conclusion
The Federal Government of Nigeria’s plan to distribute
A75,000 to 70 million citizens represents a bold step toward addressing economic hardship. However, the success of this initiative hinges on its implementation.
By structuring the funds as loans rather than grants, bypassing state governments, and focusing on agriculture and vocational education, the program can achieve its intended goals.
Source: Gavel International
