Bola Tinubu, National Leader of the All Progressives Congress, APC, on Wednesday, enjoined the Federal Government to render emergency sustenance relief to Nigerian households in a bid to cushion the effect of Coronavirus also known as COVID-19 on them.
Tinubu said the relief, which should be distributed to households, unemployed should be done via cash payment using their BVNs.
In a lengthy article where he stated his position on the economic stimulus to Nigerians and ideas on revamping the economy Tinubu me, the APC National Leader stressed that such reliefs will help refuse hunger.
According to Tinubu: “With the fiscal latitude provided by lifting the budgetary limit, the government can render emergency sustenance relief to most Nigerian households, especially the recently unemployed, via cash payments.
“This will blunt hunger, maintain aggregate demand in the domestic economy and help sustain private-sector markets to the extent possible. Directed towards needy and modest households, such expenditure must be heavily weighted to local produce, not to imports. This will help mute inflation.
The former Lagos State Governor also gave a breakdown on how the government should distribute financial palliatives to Nigerians.
“Such payments can be done in either one or in a combination of three ways.
First, we can designate a stipend for every household. The amount should be enough to pay for the monthly needs of an “average” household for food and other basics.
Second, the stipends could be given as a form of emergency unemployment insurance to those who can prove they were relieved of employment due to the crisis.
This would be more targeted at the actual victims of the crisis but harder to administer.
This stipend would also have to be extended to owners of small and medium-sized businesses.
“Third, we could render some form of payroll support to companies and businesses that seek to retain workers albeit they may not be fully employed.
The stipend could help companies stay in operation while maintaining workers on their payroll. By maintaining workers, the company can more swiftly return to full operation when normalcy returns.
“Payment of these stipends will require hiring additional government workers to augment the existing bureaucracies to implement this program.
This administrative requirement will help boost employment and aggregate consumer demand.”
Tinubu further stated that payment of palliatives would be easier using BVN of prospective recipients for direct payments into their bank accounts.
“Payments can be made quickly by using the BVNs of prospective recipients to make direct deposits into individual bank accounts.
This will encourage those without bank accounts to establish such accounts.
This process will bring millions of people into formal banking. It will also be safer and not lead to the types of violence and crime that might follow physical cash transfers,” he added.
Source: News update