Some Nigerians have offered insight into how best to subsidise the poor, even smack in the middle of the dispute over whether the government should scrap or retain fuel subsidy.
In what they described as the ultimate subsidy, as against elitist subsidy, boardroom experts and unionists said the best subsidy is that which increases food availability and the income of the man on the street.
The current subsidy is of no positive consequence to the average person; instead, it enriches the rich, so they argued.
Fuel subsidy, a fraud
Nigerian Labour Congress (NLC) factional Vice President, Issa Aremu, told TheNiche that subsidy does not exist in the first place, rather what goes on is the plundering of national resources by a few at the expense of many.
He said the products believed to be subsidised never sell at affordable prices to the target consumers.
“For us, subsidy is a fraud that has to be eliminated. The objective of the scheme has been twisted out of form and relevance,” Aremu insisted.
Turning fortunes around
The Managing Director and Chief Executive Officer, Multiple Bond Trust Insurance Brokers, Abiodun Durodola, shed light on how the government can offer ultimate subsidy to the masses.
The best subsidy, in his view, is that which will liberate productivity in agriculture, small enterprise owners in rural areas or cities, as individual earnings will also improve government’s tax revenue.
Said he: “Less than one quarter of the money spent on subsidy can turn around the fortunes of citizens if the government decides to subsidise farmers and small enterprise owners.
“All the money the CBN (Central Bank of Nigeria) was said to have set aside for MSMEs (micro, small and medium enterprises) could be better utilised for subsidising agricultural business. That will make greater and better impact on the economy.
“I heard about money set aside for farmers. The question is who are the farmers that benefitted from the government intervention funds in agriculture?
“Go and see the real farmers along Mowe, Papalanto, Ewekoro, Shagamu, et cetera. You will still see their hoes and cutlasses in their hands. I have known them for several years; they have remained the same.
“They didn’t even know about the so-called government intervention funds in agriculture. The question remains, who are the farmers that shared the money?
“So, instead of the government wasting money, let it invest in equipment and hire them out to farmers for use. This is the area in which the government should help.
“Don’t give people direct money, invest in them and equipment. Subsidising local farmers is the ultimate subsidy.”
Buhari and international agreements
Durodola, an insurance broker and an executive member of the Nigerian Council of Registered Insurance Brokers (NCRIB), faulted the pledge made by President Muhammadu Buhari to honour all international agreements.
“There’s nowhere in the world where such is possible. Even in America. They will push people to sign agreements and tactically back out.
You cannot expose your economy to everything if you want it to grow. If you want to honour everything, it means the country will turn into a dumping ground.
“If a product from China is going to spoil in three months, why won’t I buy the one made in Aba, even if it is going to damage in less than two months but I know that the money is circulating within the economy. Gradually, we will improve on the product over time.
Technology transfer, a ruse
“Nobody will transfer technology to another. You have to start producing the products by cloning them, and with time you improve and even perfect the product.
“What will it cost the government to identify the communities with comparative advantage of producing different produce, and then see what specific machinery the local people require to improve productivity.
“What does it take for the government to say this place is a palm oil producing area, let us install an oil milling machine plant where the local producers can produce their palm oil and pay a token?”
How Nigerians can sell garri abroad
Durodola insisted that the government can afford to install such plants across all the areas where palm oil is produced, and can install plants suited for garri processing, yam flour processing, and other food items produced in the country.
“Today Nigerians in the United Kingdom and the United States buy Ghana garri and yam instead of the produce from Nigeria. This is because the Ghanaian government has made it possible for their people to improve the quality of their produce.
“There are more Nigerians than Ghanaians in the UK and the U.S. Why should Nigerians leave their own to buy Ghana’s products, helping their economy to grow at the expense of their home country?
“If the government helps to put in place infrastructure and the quality of garri and yam produced in the country is improved, there is no reason why it would not be in high demand abroad and become also a source of foreign exchange revenue.
“The government can also build production plants at strategic locations equipped for shoe production, and various artisan workmanship which artisans could use to improve the quality of their products.
“By so doing, people will maximise their potentials and at the same time produce enough for export.”
