Without data, the N5 billion allocated to each state of the federation creates another problem.
This is according to Wale Smatt-Oyerinde, the Director General of Nigeria Employers Consultative Association (NECA) who stated this during an interview via Channels Television on Friday, August 18.
Oyerinde thinks it comes with good intentions, but it still brings the country back to the issue of the framework. He said:
- “How exactly will the N5 billion be distributed? What purpose will the N5 billion be put into? Looking at where we were before now and what brought us to this point; the fuel subsidy removal created a shock that devolved into many other issues, you cannot be complaining about the effect and feeding the cause.”
Oyerinde who is also a member of the Governing Board at the International Labour Organization (ILO) said that the fuel subsidy removal created an increase in transport costs and affected the purchasing power of the average Nigerian. He said:
- “Whatever solution we are bringing should first address the root cause of the fuel subsidy, will the N5 billion be used to address the root cause? Will it be judiciously used to impact the lives of those that the government has selected to be the beneficiaries of those funds?
- “For us, it is less about the amount but what exactly is the framework that will be used to disburse these funds? If you don’t create a framework or a path where that N5 billion will trickle down to those that need it, then you have created another inefficient system.”
Oyerinde also highlighted the fact that the database that was used to identify the poorest of the poor in the country is already being contested and if credible data is not available for identifying the right people, then it is a pointless mission.
He said that if we don’t get the data right, then we have created a system where people can always game the system.
According to him, the issue of accessing appropriate data is not difficult but the intention has to trickle down from the government.
He stated further that if other stakeholders are interested in driving the focus on getting correct data, then the government will be put under multidimensional pressure to come up with the needed data.
The Backstory
On Thursday, August 17, Nairametrics reported that President Bola Ahmed Tinubu has allocated N5 billion to each state including the FCT, as palliatives to cushion the effects of the removal of the petrol subsidy.
According to the report, the funding has to be shared with a formula as follows:
- 52% of the money is given to states as grants
- 48% of the N5 billion is to be paid back on an instalment basis within a period of 20 months to the Central Bank of Nigeria by the states and the local government areas in Nigeria.
