Apparently disturbed by the multiplier effects of the novel coronavirus (covid-19) pandemic ravaging the world, APC national leader, Ahmed Bola Tinubu has advocated payment of stipends to Nigerians to cushion the effects.
In a pubic statement on Wednesday, titled “Coronavirus Economic Stimulus Program”, Mr Tinubu stressed the need for the federal government to embrace relief package through cash payments to most Nigerian households.
According to him, the target groups should be ‘needy and modest households’, unemployed (as a result of covid-19) as well as businesses and companies.
His words, “With the fiscal latitude provided by lifting the budgetary limit, 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.
“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. While this may somewhat penalize larger families, perfection cannot be had at this time.
“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.
“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.”
Read the full statement:
Covid-19: Tinubu Backs Payment of Stipends Using BVNs
By tech