Justification For The N5000 Conditional Cash Transfer Program (CCTP) - Politics - Nairaland
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Who Has Received The N5000 Stipend From FG? / Saraki And Ekweremadu Granted Conditional Bail / Fg’s N5,000 Conditional Cash Transfer List Of 8 States READY! (2) (3) (4)
| Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Bevista: 11:45pm On Jun 17, 2015 |
First of all, let’s get some records straight. According to the APC campaign manifesto, the proposed CCTP is intended to “…give N5, 000 to the poorest and most vulnerable 25 million over a phased period”. This has been erroneously interpreted to mean unemployment benefits for the unemployed. That is not entirely true, the proposed program is more similar to the Food Stamp Program in the US which is quite different from Unemployment claims. Secondly, the program is not to be implemented in one fell swoop, but to be phased over 5 years at 5million persons per year, costing about N25billion/month (N300billion/year) . FREE HANDOOUTS / WASTE OF RESOURCES? For those who think this program is a waste of public resources, I have a few questions to ask. Why is it acceptable for the country to spend about N150billion for 2500 persons (NA members, their aides and other NA staff) and yet some of us consider it outrageous for the same amount of money to be spent on 2.5million ordinary Nigerians? Why is it ok for the country to spend N1billion to feed 1 family and it is not ok to spend that same amount to feed 5,000 families? Why was it ok for the government (though AMCON) to bail out a few rich banks with over N5.7trillion naira and yet it is not ok to spend N1.5trillion to bail out 25million Nigerians? Our priorities and choices reflect our values. We live in one of the most dehumanizing countries in the world, with immeasurable inequality. Why is it that when it is time to spend some money that will benefit the poor people directly, that is when we realize that we need money for infrastructure and other things, and yet we find it very convenient to allow politicians in cahoots with the CABAL to plunder the treasury (legally and illegally) with reckless abandon. I have heard we will soon be approving N9billion for 469 persons to improve their wardrobe, while millions wallow in poverty – what a joke! THE US FOOD STAMP TEMPLATE The US implements the Supplemental Nutrition Assistance Program (SNAP) known as the Food Stamp Program. This program provides food-purchasing assistance for low and no-income people living in the US. According to Wikipedia, SNAP benefits cost the US govt $74.1billion in fiscal year 2014 and supplied roughly 46.5million Americans with an average of $125.35 for each person per month in food assistance. (This program is completely different from the Unemployment Claims that is also implemented monthly). Similar programs have been implemented across developed and developing economies with a good measure of success. ECONOMIC RESEARCH Still using SNAP as our benchmark, economic research has shown that every $1 that is spent from SNAP results in about $2 - $3 of economic activity. Infact, according to the US Congressional Budget Office, SNAP benefits is rated one of the two most cost effective of all spending and tax options for boosting growth and jobs in a weak economy. Also, the Food Research and Action Centre claims that “putting more resources quickly into the hands of the people most likely to turn around and spend it can both boost the economy and cushion the hardships on vulnerable people who face a constant struggle against hunger”. Most economists will find the above explanation a lot more intuitive. The way the transmission mechanism for the program works is that – the total spending by the beneficiaries will lead to increased aggregate demand; firms will invest more to increase their productive capacity to meet this increased demand; this usually leads to an uptick in employment. When huge amounts of money is spent on a few rich folks, what you get is that most of the money is stashed up in cash in home vaults, fixed in bank deposits, spent on buying properties or/and stocks, etc. Very little proportion of the money goes into spending on real commodities that can stimulate the economy. ALTERNATIVES People have suggested that it would be wiser to rather invest the money in infrastructure or/and give the money as loans to SMEs. The thinking is that this will lead to improved infrastructure and more job creation. My view is that, usually, governments don’t implement these social programs in isolation. It is not meant to replace investments and other developmental programs but to complement it and serve as a stop-gap measure to support the vulnerable in difficult times. Why does the US government not choose to invest the SNAP money in infrastructure instead? Infact, why do they even borrow to implement this program? We are talking about $75billion which is 3x our total annual budget being spent on this program alone. CHALLENGES There are obvious challenges that may hamper the successful implementation of this program. First of all, there is no proper database to identify the target beneficiaries. There is also the risk of politics, nepotism, corruption, blackmail and sentiments affecting the process of selecting beneficiaries and implementation of the program. CONCLUSION The purpose of this writeup is to show that there is empirical economic research and evidence to support the implementation of such programs and that Nigeria can afford N300billion (N25b x 12) per year to support her most vulnerable citizens. This program is not entirely an APC program. The National Poverty Alleviation Programme (NAPEP) has been using this interventionist program for more than 8 years now, albeit reaching only a few households. The APC simply wants to widen the nozzle of the hose to make it reach more households. (just google NAPEP CCT program - codenamed COPE) http://www.vanguardngr.com/2012/06/napep-disburses-n380m-on-cope-scheme/ However, as we do not have the culture of accountability & probity, I will be reluctant to recommend this program at this time. Not because I see anything fundamentally wrong with the economics and mechanics of the program, but rather because I am not confident we have the institutions to implement it successfully. Remember, in the past we have had beautiful programs like Fuel Subsidy, Fertilizer Subsidy, MAMSER, MDGs, Sure-P, Amnesty program, etc. All these programs have failed, not because there is anything inherently wrong with them, but simply because of the Nigerian factor. CC: lalasticlala, Afam4eva, OAM4J, Ikenna351 1 Like |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Goodyshoes(m): 11:48pm On Jun 17, 2015 |
FTC |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by realborn(m): 11:49pm On Jun 17, 2015 |
Hmmmmm. Gr8 argumentative angle and opinion. N300Billion a year would definitely not hurt. If the few leaks through which corruption is carried out are plugged, then this will not cause any strain. However, a law must be promulgated to criminalise any employed individual who intends to dupe the government and deprive others by claiming this stipend. Furthermore, for the handout to make economic sense to the beneficiaries, food prices must be crashed through the laws of demand and supply, and effective management of corruption. To make this work, it is high time the national database with data on every Nigerian is developed, monitored and tracked to forestall multiple registration and beneficiaries. Lastly, it must be timebound, after which it will be on record that substantial jobs have been provided for the unemployed populace and per capita income enhanced. We must not reinvent the reaction similar to the feedback on the cancelling of amnesty handouts to ex-militants. 2 Likes |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by poiZon: 11:55pm On Jun 17, 2015 |
LUBBISH! |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by atlwireles: 12:09am On Jun 18, 2015 |
 bunch of parasites, tell us where your N300B is coming from? Your current budget is already underfunded. Maybe you people will drive the price of crude oil higher to generate this kalokalo money.3 Likes 2 Shares |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by huntamania(m): 12:09am On Jun 18, 2015 |
Lool. 300 billion a year won't hurt the economy?! Do you even know the budget layout??! |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Genius100: 12:14am On Jun 18, 2015 |
What clowns don't realize is that the program was not pulled out of thin air. It has been very successful in developing countries. See below ------------------------------------------------------------------------------------------------------------------------------------------------- The city of Rio de Janeiro is infamous for the fact that one can look out from a precarious shack on a hill in a miserable favela and see practically into the window of a luxury high-rise condominium. Parts of Brazil look like southern California. Parts of it look like Haiti. Many countries display great wealth side by side with great poverty. But until recently, Brazil was the most unequal country in the world. Today, however, Brazil’s level of economic inequality is dropping at a faster rate than that of almost any other country. Between 2003 and 2009, the income of poor Brazilians has grown seven times as much as the income of rich Brazilians. Poverty has fallen during that time from 22 percent of the population to 7 percent. Contrast this with the United States, where from 1980 to 2005, more than four-fifths of the increase in Americans’ income went to the top 1 percent of earners. (see this great series in Slate by Timothy Noah on American inequality) Productivity among low and middle-income American workers increased, but their incomes did not. If current trends continue, the United States may soon be more unequal than Brazil. A single social program is transforming how countries all over the world help their poor. Several factors contribute to Brazil’s astounding feat. But a major part of Brazil’s achievement is due to a single social program that is now transforming how countries all over the world help their poor. The program, called Bolsa Familia (Family Grant) in Brazil, goes by different names in different places. In Mexico, where it first began on a national scale and has been equally successful at reducing poverty, it is Oportunidades. The generic term for the program is conditional cash transfers. The idea is to give regular payments to poor families, in the form of cash or electronic transfers into their bank accounts, if they meet certain requirements. The requirements vary, but many countries employ those used by Mexico: families must keep their children in school and go for regular medical checkups, and mom must attend workshops on subjects like nutrition or disease prevention. The payments almost always go to women, as they are the most likely to spend the money on their families. The elegant idea behind conditional cash transfers is to combat poverty today while breaking the cycle of poverty for tomorrow. Most of our Fixes columns so far have been about successful-but-small ideas. They face a common challenge: how to make them work on a bigger scale. This one is different. Brazil is employing a version of an idea now in use in some 40 countries around the globe, one already successful on a staggeringly enormous scale. This is likely the most important government anti-poverty program the world has ever seen. It is worth looking at how it works, and why it has been able to help so many people. In Mexico, Oportunidades today covers 5.8 million families, about 30 percent of the population. An Oportunidades family with a child in primary school and a child in middle school that meets all its responsibilities can get a total of about $123 a month in grants. Students can also get money for school supplies, and children who finish high school in a timely fashion get a one-time payment of $330. A family living in extreme poverty in Brazil doubles its income when it gets the basic benefit. Bolsa Familia, which has similar requirements, is even bigger. Brazil’s conditional cash transfer programs were begun before the government of President Luiz Inacio Lula da Silva, but he consolidated various programs and expanded it. It now covers about 50 million Brazilians, about a quarter of the country. It pays a monthly stipend of about $13 to poor families for each child 15 or younger who is attending school, up to three children. Families can get additional payments of $19 a month for each child of 16 or 17 still in school, up to two children. Families that live in extreme poverty get a basic benefit of about $40, with no conditions. Do these sums seem heartbreakingly small? They are. But a family living in extreme poverty in Brazil doubles its income when it gets the basic benefit. It has long been clear that Bolsa Familia has reduced poverty in Brazil. But research has only recently revealed its role in enabling Brazil to reduce economic inequality. The World Bank and the Inter-American Development Bank are working with individual governments to spread these programs around the globe, providing technical help and loans. Conditional cash transfer programs are now found in 14 countries in Latin America and some 26 other countries, according to the World Bank. (One of the programs was in New York City — a small, privately-financed pilot program called Opportunity NYC. A preliminary evaluation showed mixed success, but it is too soon to draw conclusions.) Each program is tailored to local conditions. Some in Latin America, for example, emphasize nutrition. One in Tanzania is experimenting with conditioning payments on an entire community’s behavior. The program fights poverty in two ways. One is straightforward: it gives money to the poor. This works. And no, the money tends not to be stolen or diverted to the better-off. Brazil and Mexico have been very successful at including only the poor. In both countries it has reduced poverty, especially extreme poverty, and has begun to close the inequality gap. The idea’s other purpose — to give children more education and better health — is longer term and harder to measure. But measured it is — Oportunidades is probably the most-studied social program on the planet. The program has an evaluation unit and publishes all data. There have also been hundreds of studies by independent academics. The research indicates that conditional cash transfer programs in Mexico and Brazil do keep people healthier, and keep kids in school. In Mexico today, malnutrition, anemia and stunting have dropped, as have incidences of childhood and adult illnesses. Maternal and infant deaths have been reduced. Contraceptive use in rural areas has risen and teen pregnancy has declined. But the most dramatic effects are visible in education. Children in Oportunidades repeat fewer grades and stay in school longer. Child labor has dropped. In rural areas, the percentage of children entering middle school has risen 42 percent. High school inscription in rural areas has risen by a whopping 85 percent. The strongest effects on education are found in families where the mothers have the lowest schooling levels. Indigenous Mexicans have particularly benefited, staying in school longer. Bolsa Familia is having a similar impact in Brazil. One recent study found that it increases school attendance and advancement — particularly in the northeast, the region of Brazil where school attendance is lowest, and particularly for older girls, who are at greatest risk of dropping out. The study also found that Bolsa has improved child weight, vaccination rates and use of pre-natal care. When I traveled in Mexico in 2008 to report on Oportunidades, I met family after family with a distinct before and after story. Parents whose work consisted of using a machete to cut grass had children who, thanks to Oportunidades, had finished high school and were now studying accounting or nursing. Some families had older children who were malnourished as youngsters, but younger children who had always been healthy because Oportunidades had arrived in time to help them eat better. In the city of Venustiano Carranza, in Mexico’s Puebla state, I met Hortensia Alvarez Montes, a 54-year-old widow whose only income came from taking in laundry. Her education stopped in sixth grade, as did that of her first three children. But then came Oportunidades, which kept her two youngest children in school. They were both finishing high school when I visited her. One of them told me she planned to attend college. RELATED More From Fixes Read previous contributions to this series. Outside of Brazil and Mexico, conditional cash transfer programs are newer and smaller. Nevertheless, there is ample research showing that they, too, increase consumption, lower poverty, and increase school enrollment and use of health services. If conditional cash transfer programs are to work properly, many more schools and health clinics are needed. But governments can’t always keep up with the demand — and sometimes they can only keep up by drastically reducing quality. If this is a problem for medium-income countries like Brazil and Mexico, imagine the challenge in Honduras or Tanzania. For skeptics who believe that social programs never work in poor countries and that most of what’s spent on them gets stolen, conditional cash transfer programs offer a convincing rebuttal. Here are programs that help the people who most need help, and do so with very little waste, corruption or political interference. Even tiny, one-village programs that succeed this well are cause for celebration. To do this on the scale that Mexico and Brazil have achieved is astounding. On Saturday, I’ll respond to reader comments. I’ll also explain why this idea is so remarkably successful — and what we can learn from it. http://opinionator.blogs.nytimes.com/2011/01/03/to-beat-back-poverty-pay-the-poor/?_r=0 2 Likes |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Truckpusher(m): 12:21am On Jun 18, 2015 |
atlwireles:What you're seeing right now is voodoo economy in the making .  Heavy kalokalo I swear. APC party and Buhari are bunch of political gamblers ,they've got nothing to offer and sadly we are stuck with this gross incompetence in the making for another four years . Abracadabra economy. 1 Like |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Bevista: 12:26am On Jun 18, 2015 |
Truckpusher:I was hoping we'll keep the discussion intellectual. You've not said anything to add to the debate. |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Truckpusher(m): 12:33am On Jun 18, 2015 |
Bevista:What's intellectual about advocating for a program that would be dead on arrival when we've been sitting on a fake structure of governance that do not reflect the true yearnings and expectations of the different regions involved ? Industrialize this country first and not importing everything to create trade surplus before you can talk about using recurrent expenditure to feed 25 million poor Nigerians . The op was making comparisons between the house of reps wardrobe saga to 300 billion naira problem and even got confused on what he wanted to write on. It's all nonsense . |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 1:00am On Jun 18, 2015 |
The purpose of this writeup is to show that there is empirical economic research and evidence to support the implementation of such programs and that Nigeria can afford N300billion (N25b x 12) per year to support her most vulnerable citizens.Sometimes when we fail to put into considerations several factors before taking position. Firstly, Nigeria as a country is NOT RICH! Our FG 2015 budget is pegged at a deficit of N1.1trillion. That means we have to find ways to source for N1.1trilion to service our existing budget by securing loans and bonds-along with their attendant interests. It could even be more than the projected amount depending on oil price and our revenue. So adding a burden of N400 billion (N100billion estimated for logistics and overhead) to the already N1.1trillion deficit into a "feeding bottle" non-productive policy is INSANITY. Are we to also secure loan of an additional N300 bollion(and its interests)? Secondly, the buying power of the naira is depreciating by the name. This coupled with lack of basic infrastructure like power, road, water etc means that people seek for alternative. Now you "borrow" N300billion to settle some 5million people. These people spend most part of these money to power Generator, buy water from "mai ruwa", they pay increased transport fare to the market etc... How much will be left to enjoy? Aside that what percentage of these money can be used productively? What percentage can buy okrika cloth? You find out that the money have no real impact on the lives of the beneficiaries. Why Your Examples Are Flawed: USA Food Stamp: How are revenue sourced to take care of the USA food stamp? Are you aware that working Americans pay Social Service taxes called Federal Insurance Contributions Act tax (FICA) or Self Employed Contributions Act Tax (SECA).? The American government tax employers and employees a certain percentage. It also tax illegal immigrant. Monies realise from this scheme is drawn to take care of every social program in the State. The Government do not necessarily BORROW to fund it. Remember, citizens of America enjoy security, water, electricity, good transport etc...Hence, huge percentage of whatever peanut they get goes to their stomach. Is this the same of Nigeria? Can the Nigeria government dare to tax people that are majority underemployed and with most part of our meagre income going into electricity provision, security (we pay vigilantes to guard our streets), high transportation etc. In fact, most of our the so-called "working" population barely survive. Is it the same people that you will ask to give up more of their earnings? Brasil's Bolsa Familia: Unlike Nigeria Brazil enjoys basic amenities like constant electricity, it is relatively secure, touristic and is a PRODUCING ECONOMY. They produce automobiles, steel and petrochemicals to computers, aircraft, and consumer durables. They also produce coffee and home to lots of high class companies. The Brazil government has always posted Surplus on annual fiscal budget. It means they have more money left even after deducting expenditures from revenue. They have the extra-money to give out to poor families, enroll them in schools and their dependent so as to equip them mentally. In fact, they still have MORE money left even after doing that. In their 2014 Fiscal Budget, they posted $57,3billion in budget surplus. Brazils Foreign Exchange reserve is $365BILLION How can you compare such country with Nigeria? Do we have such money? Do we have such luxury? 2 Likes |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Bevista: 1:34am On Jun 18, 2015 |
barcanista:You see - the problem is that this issue concerns the poor. If it were to concern the rich, it would be a no issue, they would simply just go out there and raise bonds (borrow) immediately. The govt in the last 5years increased our debt burden by over $20billion (N4trillion) - what was it used for? The govt siphoned over N1.5trillion through subsidy payments in 2011 - no qualms. Now, it is time to support poor folks - we suddenly remember budget deficit. If our problem is budget deficit, why do we find it convenient to pay N9billion to less than 500 people for something as mundane as wardrobe allowance. How much do we spend on scandalous security votes and entourage of politicians? The US has been running budget deficit in the last few years (about $480billion deficit in 2014). So yes they borrow to maintain those programs. Infact, the US has a debt to GDP ratio that is approaching 100% while Nigeria has a debt to GDP ratio of less than 10%, yet they still borrow to maintain those programs. We are talking about improving the quality of lives of citizens, so your PRIORITIES will depend on your VALUES. 2 Likes |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 2:09am On Jun 18, 2015 |
Bevista:Again you are drawing a parallel where there is none. The government did not "increase" debt profile. It took debt and ofcourse with nothing to show. Nigeria already have a debt profile of about $60billion for both FG and states from 1960 till date. Of course it will be increased going by our budget and the interest accrued. This is pure an economic exercise and not an emotional one. Should the federal government take N300billion loan to add to the already existing high debt and the impending N1.1trillion deficit? This will be a disservice to the future generation because the country will be so messed up that we may not recover in another 100years. As for the USA Budget, their Social Service TAX revenue for 2014 was $1,023.5trillion, while the country spent $851 billion to cover all social benefits. Their Expenditure for 2014 SNAP was "meager" $74.1 billion. You see that they have posted surplus of about $100b from their social security revenue alone. Not forgetting the fact that they have real source of servicing this social policy. Should Nigeria be taking loans? Which country have you seen or heard takes loans to fund non productive policy? Meanwhile, we are yet to have capital infrastructures in place. Our government should invest in capital project and the real economy. 1 Like |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Bevista: 2:21am On Jun 18, 2015 |
barcanista:You are wrong - you misunderstood NOI. Our total debt burden (foreign & domestic) as at 2010 was about $40billion. In 5 years, GEJ increased that figure to over $60Billion. NOI was simply trying to defend her boss that he was not responsible for the whole $60Billion debt (rightly so). Budget deficit is Revenue - Expenditure. Currently, the US spends more than it generates. The deficit in 2014 was over $480billion, so they had to approach the bond & treasury to borrow. Ask Google and they'll confirm to you that Social Security is responsible for the bulk of that deficit. |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 2:40am On Jun 18, 2015 |
Bevista: Actual Earning Via Social Security tax $1.2 trn http://www.usgovernmentrevenue.com/federal_budget_estimate_vs_actual_2014 Benefit paid for SS in 2014 $851 billion http://www.cbpp.org/research/policy-basics-where-do-our-federal-tax-dollars-go Nigeria already have huge loans on our head. America isn't that broke considering its assets and it even give grants to countries. Can that be said of Nigeria? So while USA may pose overall Budget deficit ie 15% of overall budget, our own Budget deficit stand at N1.1 trillion ie 25% of our budget. If you compare America's deficit to their GDP you will see that it isn't a cause for concern. Can this be said of Nigeria? |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by patrickmuf(m): 3:02am On Jun 18, 2015 |
I still don't support this idea at least for now, we don't have the means neither do we have the institution to rightfully implement anything of this sort... |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Bevista: 3:20am On Jun 18, 2015 |
barcanista:Quite frankly, I do have a strong Economics background so I know that the Nigerian economy is fragile and might not be able to withstand further strain. For instance, we are spending nearly a quarter of our budget on debt servicing alone. However, it's not the poor folks who caused this debt overhang, so why should they be punished for it while the those who caused it continue to enjoy even more. I'm just miffed that we are always quick to tell the poor to tighten their belts in times of austerity and yet in the season of plenty, only the rich enjoy the windfall. This is just pure insensitivity. When will there ever be a time that politicians and bourgeois will make sacrifices so that those folks leaving in abject poverty will have a sense of belonging, even for 1 year. |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Validated: 7:49am On Jun 18, 2015 |
Arm-chair analysts are everywhere in Nigeria claiming empirical evidence How did you arrive at 5 million? That is approximately 140k people per state. Do you know the population of Almajiri, poor and destitute in Kano metropolis alone (no harm meant as Kano has the highest census-population in Nigeria)? They constitute at least 40% or about 4 million (using 2014 estimated population of approx. 10million). What about area boys, beggars, unemployed, under-employed in all the major Nigerian cities? One local government area alone will swallow your 140k in some states. FG is grappling with the issue of Ghost workers and you are talking of N5000 for the poor that people will shove astronomical numbers on you. If FG tries it, all the poor in Chad, Niger, and other adjourning states will flock into Nigeria for the booty. Your empirical evidence has not considered the inflationary impact of such a useless policy. APC is really an unserious party to say the least. If FG/Buhari so love the poor, let them declare free education up to Secondary school level and adjust tuition downward in Federal Universities and Polytechnics, instead of another useless "subsidy-scam" political charade. 1 Like 1 Share |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 8:06am On Jun 18, 2015 |
I support barcanista on this, instead of paying 5k to d poor(so many poor pple wont get d money, some myt get twice), we shld sincerely pump it into d economy for job creation..dats a beta idea. |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Volksfuhrer(m): 9:27am On Jun 18, 2015 |
barcanista: Your assumptions are flawed. You are looking at this issue like an accountant. Every naira spent on this project adds more than a naira worth of impact on the economy (income multiplier effects) Let's look at an individual who has just received 5000 naira. He would most likely spend every naira per month on essentials. That money wouldn't just vanish into thin air, it would go into a business account as increased revenue for that month. The business outfit can now order for more materials... So while the poor are being relieved, business activities are also being stimulated. Even if the government borrows to fund this programme, its macroeconomic effect is still better than borrowing to pay senators and reps. 1 Like |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 10:09am On Jun 18, 2015 |
Volksfuhrer:Which government borrows to fund social programs? Even in the UK it is not so. Ekiti under Fayemi was paying a section of elderly people of 65years and above N5,000 monthly even when Ekiti was practically broke. Did that solve anything? Ekiti was unable to pay salaries for 2 Months before Fayemi's exit and was indebted to the tune of N87billion when Fayemi left office. According to the budget office of Ekiti state, it will take almost a decade to pay-off the debt(ofcourse that won't be even in a decade). Now the state is indebted HUGELY with no capital project. What impact did the N5000 had? Are they better than they were? Did that eradicate poverty? Osun state under Ogbeni Aregbesola started paying N10,000 monthly to ONLY 2000 elderly people in the state (N20Million Monthly). Today they are indebted to N480 billion. They are unable to pay salaries for SEVEN months and the state is still poor. Are the elderly better off? pensions are owed for months and there is not capital project to fall on. The truth is that Nigeria will be heading towards a state of disaster should the APC go ahead with their laughable scheme. 1 Like |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 10:19am On Jun 18, 2015 |
justified19:This country we like "short cut". There is no short-cut to solve the problem of poverty other than to tow the path of sanity |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by baralatie(m): 10:36am On Jun 18, 2015 |
Bevista:okay!let us put you on a clear direction as regards this thread. now can us suggest answers to the following: 1, the op has estimated at least #300 billion a year,where will Pmb get this money knowing there is a 50% shortfall in revenue. 2.you already have 17 states out of 36 states unable to fund or accurately put pay salaries. 3.according to data,the core north ARE 100% the major beneficiary of this scheme or do you believe otherwise. 4.on what parameter is the #5000 based I,that receipt have accommodation and only require feeding allowance ii,that the receipts are in far out villages out of touch how to you decide! |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 10:55am On Jun 18, 2015 |
barcanista:sure..very true 1 Like |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Volksfuhrer(m): 11:07am On Jun 18, 2015 |
barcanista: Ekiti isn't the Federal Government. Ekiti under Fayemi didn't control fiscal and monetary policies that concentrated money in the hands of the few! Now that the Federal Government will take charge of a similar programme at the centre, we might just as well await its economic impact. Besides, blaming Ekiti's debt on Fayemi's monthly payment of 5000 naira to some elderly people is just unfair because Fayemi undertook many projects. And there are states that don't run Fayemi's programme that are currently indebted too. So that point is neither here nor there. The reason for my earlier post was just to debunk arguments portraying the project as a waste. I wouldn't blame those who do, because they think like accountants. We have been using stupendous wealth to build infrastructure that benefits mainly the elite. And what did we get, our current situation... Please, the cost of taking care of the less privileged isn't as great as you people are making it to be. When the economy is stimulated, the government will benefit through increased tax revenue. Or you didn't factor that into your equation? After all, project evaluation does not walk on one leg. An unwarranted emphasis on costs alone brings nothing to this discourse. 1 Like |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Bevista: 11:11am On Jun 18, 2015 |
baralatie:There is always a budget constraint for every government. The govt will always need to prioritize and accept opportunity cost. The govt has been borrowing for other programs. We borrowed over N1trillion to pay for subsidy scam. The new govt is expecting support of $5billion from the US govt. The previous govt borrowed over $20billion in 5 years. We are borrowing to support the bogus lifestyle of politicians. And yet we find it unacceptable to borrow N300billion to support the most vulnerable members of our society. Are we even aware that the primary responsibility of government is SECURITY and WELFARE of its citizens? And we are not even talking about the macroeconomic multiplier effect of the program. Are you even aware that the PDP government created this program through NAPEP and have been implementating it for more than 8 years now (small scale, though). |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by NIGERIALOLoCOM(m): 11:19am On Jun 18, 2015 |
Bevista: |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by grandstar(m): 11:27am On Jun 18, 2015 |
Bevista: Payment for this already "exist" Simply remove the subsidy and you have more than enough I suspect there will be a trade off |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by otr1(m): 11:31am On Jun 18, 2015 |
The money saved from the removal of subsidy(if there is any in the first place) will be used to fund this program. Afterall, we were able to save N500 billion as SURE-P fund in less than two years. Monies saved from blocking wastages and eliminating unnecessary duplications will go a long way in boosting our capital spendings. Leave theory. Economics is simple. |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by baralatie(m): 11:36am On Jun 18, 2015 |
Bevista:you have not answered the question and you are dodging! |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Nobody: 11:39am On Jun 18, 2015 |
Volksfuhrer:I don't know where you are arguing from and I can't go back and forth. Read my position from beginning...My points have been made. You aren't speaking with facts and figures but assumption and emotions. Unfortunately, things doesn't work that way. Nigeria isn't a productive economy. We aren't a rich country(though we have potentials). We have bad management system. We have terrible capital and social infrastructure. Our revenue always falls short of our annual budgets. Everything is working against us. If we can't fix relevant things, then we should forget it. Even if Senators and FG officials decide to forfeit 100% of their salaries and allowances, embarking on such project would still not be wise. We need to reach a certain level before talking about payment or no payment |
| Re: Justification For The N5000 Conditional Cash Transfer Program (CCTP) by Bevista: 11:44am On Jun 18, 2015 |
baralatie:There are many loopholes that will be blocked to help the govt generate more revenue to implement it's programs. However, my point is that even without any extra revenue, the govt can still borrow to implement this program. We have been borrowing to pay salaries, support the bogus lifestyle of politicians and even bailout rich banks; so why can't we borrow to support the most vulnerable members of society. Need I remind you again that the primary responsibility of govt is the SECURITY and WELFARE of its citizens. |
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