I read an article on a national reward programme written by Jones Udemba and published in Thisday Newspaper, a programme that is expected to reward consumers of goods and services with instant cash rewards for every purchase they make across all businesses in Nigeria.
The programme also promises a chance to win anything from N5,000 to N100 million in a National Weekly Consumer Draw.
According to Udemba, the reward programme is a collaborative effort between CashToken Rewards Africa and the Nigerian Lottery Regulatory Commission, aimed at achieving the three-pronged objective of rewarding consumers for every purchase they make, boosting businesses through an increase in patronage of their goods and services and widening the tax net to give more money to the federal government.
I found the article interesting because just recently, I watched Chief Lai Labode, Chief Executive Officer of CashToken Rewards Africa, on Arise Television where he talked about the programme, enumerating the same benefits Udemba talked about in his article.
In the interview, Labode pointed out that the National Reward Programme is neither a charity nor gambling, insisting that it merely rewards consumers for making routine purchases.
In other words, the more purchases a consumer makes, the more money he gets back into his pocket. It is just good, as well, that the programme represents a win-win situation for everybody – consumers, businesses and the government.
It is an undebatable fact that Nigeria is challenged economically and socially speaking. At this time, any programme or arrangement that could offer hope of survival to a beleaguered population should be welcome.
On paper, the National Reward Programme looks appealing, if not attractive. It is, however, important that in embracing this particular consumer reward programme, some pertinent questions need to be asked, even if for purposes of clarity, for the benefit of the Nigerian people.
We are used to the regular sales promotions that organisations carry out which come in the guise of rewarding loyal customers for patronage over a certain period, but which are meant to earn more revenue for the organizations.
We see consumers spend scarce resources on the purchase of goods and services during sales promotions in the hope of winning the prizes that are attached to those promotions, not really because they need those goods or services.
A youth spends his little pocket money to gulp down bottles of a soft drink because he hopes to win the prizes attached to the exercise.
Adults spend money investing in the purchase of goods or patronage of services in the hope of winning cars, houses, foreign trips or large sums of money.
The truth is that it is the billions of naira which millions of consumers spend on the purchase of those goods and services that are used to provide rewards for the few that win, with a large chunk left as profit for the organizers of the promotions.
In what way is the National Reward Programme going to be different from the regular sales promotions that we are used to?
What are the thresholds a consumer must reach to be rewarded for any purchase he makes? Will these thresholds be made known to the consumer at the time of purchase of goods or services, to guarantee the programme’s transparency?
There is no doubt that the programme is going to be beneficial to businesses. But let it not be seen to be to the detriment of consumers who have to make large purchases for businesses to benefit, by way of increased patronage.
It is generally agreed that the government needs to open the tax net wider to accommodate the segment of the population that does not pay any form of tax, and also make a proper assessment of the tax which some businesses and individuals are currently paying, to have more money for developmental purposes.
In what way is the National Reward Programme going to bring more money to the government in the form of tax, without translating to an extra burden on the Nigerian people who have to make purchases for businesses to be able to pay more taxes?
Are there plans to replicate the programme at the state and local government levels, so every part of the country would be part of it?
The question must also be asked about the sustainability of this programme, laudable as it may seem. Is it just an emergency programme that is a child of necessity, which may disappear with time?
Written by
Femi Lawal, Abuja
This is absolutely stunning 🤝❤️