400billionman:
Poster, very sound analysis.

I tot you would falter on figures as most people usually do.

DaGC:
Good opinion.

Truth be told, I really didn't know what they were thinking when they made that promise. So, people will just stay at home and receive N5000 monthly, even without working. That's rewarding laziness with wage.

To many Nigerians expect so much from their government, even when they don't pay tax.

So many of the so called 'poorest Nigerians' actually expect government to come and feed them. And you will be surprised at how many of these 'poorest Nigerians' have multiple wives and kids.

teeman777:
this is similar to youwin initiative of jona administration.
what was the result?

I applied so te-so te- so te google sabi me pass obama

greggles:


Let's know your opinion

Bevista:
Your writeup has merits, but let's expand the debate further.

First of all, the govt estimates that 25million people will be captured in the program, but will be phased over 5years at 5million persons per year. This translates to N25billion per year. But let's even work with ur figures:

Your model estimates that 100-150k persons will be employed earning about 30-40k per month. This translates to an aggregate salary of N3-6billion monthly, much lower than the projected N25billion aggregate income.

Also, what happens to the remaining 19.8million persons the govt intended to reach? Also note that the 100k persons that will get your jobs will not necessarily be the category the govt intended to reach. This is supposed to be a kind of Social Security for the most vulnerable in the society.

Please note that N100billion in the hands of 5million persons is a completely different thing compared to N100billion in the hands of only 200k persons. In the first case, the aggregate demand will stimulate increased production from our companies which will give rise to more employment.

The US used the "Food Stamp" strategy with some measure of success, so it might be worth trying.

galantjoe:
during sec sch economics i was taught that it is work of govt to redistribute national wealth. so paying N5,000 to poorest citizen is good step in right direction and attrmpt to redistribute national cake among the poorest.
somebody said 5k is no money but according to world bank less 50million nigerians earn less than 2 USdollar a day.
someone said it willl encourage laziness but US, SA, Dbai etc are doing it for many years ago.

babamajor:
D write up is ok but wat u fail to realise is dat witout electricity those businesses Wil not trive, so if govt a way of feeding people for now it's still ok till wen there Wil be light nd also wen we Wil av a realible data bank, cus witout dat it Wil fail.

greggles:


These businesses will power themselves using solar panels, inverters and backup batteries, all these will be captured within the N10 million naira budget

greggles:
If the Federal Government intends paying the poorest unemployed Nigerians N5,000 monthly, my personal estimate is that it will be budgetting for about 20 million Nigerians, amounting to about N100 billion naira monthly.

I completely disagree with this policy. It is my belief that paying N5,000 monthly to millions of unemployed persons would amount to a waste of government resources in the short and long term.

N5,000 monthly makes absolutely no sense to our economy of today. It cannot even sustain a Nigerian youth who is even under the roof of someone else, for a month based on today's cost of living.

My Suggestion:

Government should rather invest this money into the economy in a way that will create a job for a youth and pay him up to 30,000 to N50,000 monthly. How?

Let's do some analysis here:

N100 billion naira can fund up to 10,000 businesses monthly with about N10 million naira each, who will employ about 10 people each, thereby creating up to 100,000 or 150,000 jobs monthly. This makes it possible for most Nigerian graduates to focus on starting their personal businesses and creating Full Time and Part Time jobs, instead of endlessly looking for jobs themselves. This also ensures that beneficiaries of this project get to pay tax to government, thereby increasing government's internally generated revenue. How much would you tax someone who earns N5,000 monthly when you can invest in a business that pays that person up to N50,000 monthly and then tax them?

Security For The money

In order for graduates to benefit from the business empowerment project, government needs some form of security, and they already have it, Yes, the Bank Verification Number (BVN). This ensures that your identity is known and you don't run to another bank and deposit the money to enjoy a personal life rather than use it for what it was meant for.

Just like the Social Security Number is used to track everything you do in the US, our Government, with time and policy implemenation, would be able to use our National Identity Number to quickly create a central identification system where your identity is tied to your Bank accounts and everything you do including renting a house, getting a job, doing business, contesting public office, obtaining an international passport, enrolling in college etc. Usually when you want to do any of the above mentioned, a background check is conducted with your ID Number to check your financial history as well as any violation or criminal history because all these records are usually domiciled with security agencies.

What Are The Benefits of This Project?

1. With this business empowerment programme, government will be able to stimulate and grow the economy through the private sector, this means, more employment generation through private sector businesses than directly by government

2. Government will be able to fulfill its promise to Nigerians to create millions of jobs annually

3. Government would be able to greatly boost its internally Generated Revenue through taxes both from businesses and employed persons

4. More businesses in Nigeria will survive because when more people have purchasing power, businesses can thrive and more will spring up

5. Boost Technology and Agriculture. When more businesses in Agric and Technology are empowered, then other sectors in Nigeria will grow because e-commerce will become a vital part of our development while agriculture will feed the nation and encourage export

6. Resourceful Education. When this policy is started, our Higher Institutions would be able to adjust their curricula to include practical ways of turning your course into a resourceful business venture, including how to develop a good business plan for your intending business
Organizations like SMEDAN who offer entrepreneurship courses will also follow suite and might offer certification courses which may be used as a requirement for benefitting from this project.

This Money Should Not Be A Grant

Yes, The money should be a Repayable Non-Interest Ioan. Only serious people who believe they can succeed should be given this money. We have people who are born entrepreneurs, they are not suited for the 9 to 5pm schedules, all they need is education and application of business principles to succeed and create employment for others. We also have confident entrepreneurs who believe they will succeed even with an interest loan from a bank, but unfortunately they do not have collateral, they are the very ones at the top list of who deserve this funding.

This to me would discourage emphasis on Higher Education Certificate for job hunting, and encourage Resourceful Education which is good for our economic development

God Bless us all.

#TeamGreggles, Say Yeah!

Share Your Opinion. Thanks

greggles:
If the Federal Government intends paying the poorest unemployed Nigerians N5,000 monthly, my personal estimate is that it will be budgetting for about 20 million Nigerians, amounting to about N100 billion naira monthly.

I completely disagree with this policy. It is my belief that paying N5,000 monthly to millions of unemployed persons would amount to a waste of government resources in the short and long term.

N5,000 monthly makes absolutely no sense to our economy of today. It cannot even sustain a Nigerian youth who is even under the roof of someone else, for a month based on today's cost of living.

My Suggestion:

Government should rather invest this money into the economy in a way that will create a job for a youth and pay him up to 30,000 to N50,000 monthly. How?

Let's do some analysis here:

N100 billion naira can fund up to 10,000 businesses monthly with about N10 million naira each, who will employ about 10 people each, thereby creating up to 100,000 or 150,000 jobs monthly. This makes it possible for most Nigerian graduates to focus on starting their personal businesses and creating Full Time and Part Time jobs, instead of endlessly looking for jobs themselves. This also ensures that beneficiaries of this project get to pay tax to government, thereby increasing government's internally generated revenue. How much would you tax someone who earns N5,000 monthly when you can invest in a business that pays that person up to N50,000 monthly and then tax them?

Security For The money

In order for graduates to benefit from the business empowerment project, government needs some form of security, and they already have it, Yes, the Bank Verification Number (BVN). This ensures that your identity is known and you don't run to another bank and deposit the money to enjoy a personal life rather than use it for what it was meant for.

Just like the Social Security Number is used to track everything you do in the US, our Government, with time and policy implemenation, would be able to use our National Identity Number to quickly create a central identification system where your identity is tied to your Bank accounts and everything you do including renting a house, getting a job, doing business, contesting public office, obtaining an international passport, enrolling in college etc. Usually when you want to do any of the above mentioned, a background check is conducted with your ID Number to check your financial history as well as any violation or criminal history because all these records are usually domiciled with security agencies.

What Are The Benefits of This Project?

1. With this business empowerment programme, government will be able to stimulate and grow the economy through the private sector, this means, more employment generation through private sector businesses than directly by government

2. Government will be able to fulfill its promise to Nigerians to create millions of jobs annually

3. Government would be able to greatly boost its internally Generated Revenue through taxes both from businesses and employed persons

4. More businesses in Nigeria will survive because when more people have purchasing power, businesses can thrive and more will spring up

5. Boost Technology and Agriculture. When more businesses in Agric and Technology are empowered, then other sectors in Nigeria will grow because e-commerce will become a vital part of our development while agriculture will feed the nation and encourage export

6. Resourceful Education. When this policy is started, our Higher Institutions would be able to adjust their curricula to include practical ways of turning your course into a resourceful business venture, including how to develop a good business plan for your intending business
Organizations like SMEDAN who offer entrepreneurship courses will also follow suite and might offer certification courses which may be used as a requirement for benefitting from this project.

This Money Should Not Be A Grant

Yes, The money should be a Repayable Non-Interest Ioan. Only serious people who believe they can succeed should be given this money. We have people who are born entrepreneurs, they are not suited for the 9 to 5pm schedules, all they need is education and application of business principles to succeed and create employment for others. We also have confident entrepreneurs who believe they will succeed even with an interest loan from a bank, but unfortunately they do not have collateral, they are the very ones at the top list of who deserve this funding.

This to me would discourage emphasis on Higher Education Certificate for job hunting, and encourage Resourceful Education which is good for our economic development

God Bless us all.

#TeamGreggles, Say Yeah!

Share Your Opinion. Thanks

persius555:
@Op, i dont mean to be rude, but i can imagine u how much it costs to run a production/manufacturing business on next to nothing power infrastructure. I know individuals who took 3 million naira loans for poultry and printing business and more than half of the amount plus profit went into providing power. The likes of bill gate and Co will struggle to survive in nigeria simply because the essential infrastructures are not in place. Did the google brothers or facebook worry about electricity supply or broadband facility before they developed their business in what it is today? Infrastructure first. What has happened to all the loans govt has been giving out since post colonial era.

greggles:


Government would need to establish qualifications to benefit from this project, example submitting a business plan for review and approval by the government, this business plan will include a plan to employ at least 8 to 10 people within 6 months of startup. The programme would also include a mandatory training at a participating organization, example SMEDAN, after you are shortlisted to benefit from this programme. There would be other standards too.

Another option would be writing a qualification exam that tests some of your personal and cognitive abilities to select the best among many, then undergoing business training by selected beneficiaries.

foxxynik:

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Considering qualification will drive us back to our current situation...
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The 5k goes to all unemployed and most poorest... How will you suggest qualification to the poorest Nigerians?
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Bros... I admire ur suggestions and opinions... But from the OP... You made mention of the policy to affect our economy... Please, note that Nigeria is supposedly one of the richest country in the world... Amongst the first 6 world oil producers.... With standard agricultural production.... Nigeria is rich... If we should curtail our expenses.... Then...the government must look into the salary scales....and cut down the senator's salaries and other parastatals...
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A token of 5k monthly payment to unemployed and poorest Nigerians CAN NEVER AFFECT OUR ECONOMY....
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In other western countries... College graduates receive insurance pay.....
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Buhari will be receiving "stress allowance" as the president... and you'll say it won't affect the economy of this country... What about the sitting/wardrope allowance...?
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The government shouldn't consider any qualification.... Every Nigerian is entitle to the monthly allowance....

greggles:


Bros I am completely on your side, but.. N5,000 montly will not affect the life on a Nigerian youth positively, especially an unemployed poor graduate. It won't make sense at all, may N25,000 will make some sense, but not N5,000. If it is applied to some other class of people, let's say undergraduates below 16 or so, fine, but not graduates or people above 21 with a formal education. Think about it.

If we're that rich as you suggested then I believe our annual budget would exceed N15 trillion and this will cater for both our capital development and social welfare programmes, but its much lower at that moment

By qualification, I don't mean certificate or educational requirement, I mean prerequisite, for example you need to be between a certain age, you should not be employed with an organization paying up to so and so etc...

greggles:


Ok good analysis, of which I share differences with, my opinion though. I understand that my argument costs like 1.2 trillion annually as compared with 125 billion from your estimate, but I think there are benefits of expanding the budget to achieve a higher objective

Here is my reason:

In the US for instance, jobless claims could average about $1,000 monthly, but on the average, a studio apartment (self contain) costs about $600, which gives you extra $400 to take care of feeding and other bills, that's if you don't share. You also get to qualify for up to 50% reduction or more on other services like electrcity and gas. Internet and cable cost is around $100 or less

Compare this to N5,000 monthly allowance. The average cost of rent in some cities in Nigeria apart from Lagos, PH and Abuja is like 100,000 which way beyond what N5,000 can afford, talk about other bills. I don't see any improvement of life in this case in the next 5 years.

N25,000 would have been an ideal amount but the economy cannot cater for N500 billion naira monthly welfare package at this time.

So here is the scenario I am looking at:

At 150,000 jobs monthly, we are looking at about 2million jobs annually based on employee turnover and shift work implementation, in a period of 4 years, we will have about 12 to 16 million jobs created based on business expansion and higher production stimulation due to much improved standard of living and multiplication effect of economy growth.

Now here is another comparison between your scenario and mine:

Production stimulation:

Because of the low purchasing power of N5,000 production isn't stimulated so much except at the low end of production cycles and fewer jobs are created. For instance, N5,000 income to a poor person would only increase market for an akara fryer or pop corn maker who are at the lowest end of the production scale, it induces more production to the larger scale producers too but the effect isn't far reaching

With 10,000 businesses and 100,000 jobs, there is more production stimulation at the medium to higher end of the production scale, for instance, service companies like banks and other small and medium enterprises like restaurants, laundry businesses etc thrive. Real estate related businesses expand because N30,000 has much more purchasing power than N5,000. Factories. Also expand their production due to the higher purchasing power of people.

greggles:


Ok good analysis, of which I share differences with, my opinion though. I understand that my argument costs like 1.2 trillion annually as compared with 125 billion from your estimate, but I think there are benefits of expanding the budget to achieve a higher objective

Here is my reason:

In the US for instance, jobless claims could average about $1,000 monthly, but on the average, a studio apartment (self contain) costs about $600, which gives you extra $400 to take care of feeding and other bills, that's if you don't share. You also get to qualify for up to 50% reduction or more on other services like electrcity and gas. Internet and cable cost is around $100 or less

Compare this to N5,000 monthly allowance. The average cost of rent in some cities in Nigeria apart from Lagos, PH and Abuja is like 100,000 which way beyond what N5,000 can afford, talk about other bills. I don't see any improvement of life in this case in the next 5 years.

N25,000 would have been an ideal amount but the economy cannot cater for N500 billion naira monthly welfare package at this time.

So here is the scenario I am looking at:

At 150,000 jobs monthly, we are looking at about 2million jobs annually based on employee turnover and shift work implementation, in a period of 4 years, we will have about 12 to 16 million jobs created based on business expansion and higher production stimulation due to much improved standard of living and multiplication effect of economy growth.

Now here is another comparison between your scenario and mine:

Production stimulation:

Because of the low purchasing power of N5,000 production isn't stimulated so much except at the low end of production cycles and fewer jobs are created. For instance, N5,000 income to a poor person would only increase market for an akara fryer or pop corn maker who are at the lowest end of the production scale, it induces more production to the larger scale producers too but the effect isn't far reaching

With 10,000 businesses and 100,000 jobs, there is more production stimulation at the medium to higher end of the production scale, for instance, service companies like banks and other small and medium enterprises like restaurants, laundry businesses etc thrive. Real estate related businesses expand because N30,000 has much more purchasing power than N5,000. Factories. Also expand their production due to the higher purchasing power of people.

bigass:
Nice but what will the 120000 people do to create this

kayo80:
20 million is a lot of people. What I believe they want to do is to pay only the elderly poor people. Maybe like 100,000 of them accross the nation. Some people say N5,000 is small, but I personally know some grandpas and grandmas that would greatly appreciate this as long as it is regular. And this would go a long way for this old citizens of our great country.


So, let's do the math...N5,000 to 100,000 elderly monthly equals 500 Million Naira monthly, and 6 billion Naira yearly. That is not even up to the wardrobe allowance of senators. I think this is achievable.

HFOG:

there's a lot to do in Nigeria my dear. You ever heard of YouWiN? When you see business proposal, fear go catch you no be small.
@OP, very great idea. Ideas rule the world you know. Keep thinking big one day opportunity will meet your thoughts and outstanding success will be the aftermath.

bigass:


Ok o like what if I may ask