Lawmaker representing Ondo South in the National Assembly, Senator Jimoh Ibrahim has urged the federal government to consider adopting food vouchers as a way to curb the billions of Naira being mismanaged or looted annually under the guise of palliatives for poor Nigerians.
Senator Ibrahim, who chairs the Senate Committee on Inter-Parliamentary Affairs made the proposal for the multi-dimensional economic solution during an interactive session with journalists covering the Senate on Wednesday in Abuja.
He explained that beyond addressing the recurring mismanagement of palliatives meant for poor Nigerians, food vouchers would help combat food insecurity and bridge the gap in the country’s cash-to-GDP ratio, which currently stands at 1.5 per cent.
“Food vouchers, if introduced and issued by the federal government to poor Nigerians across the 36 states and 774 local government councils, would fulfill their intended purpose.
“This is in contrast to the N15 billion in palliatives given to state governors by the Federal Government, which often ends up mismanaged or outrightly diverted,” he said.
Secondly, Senator Ibrahim said given that Nigeria’s cash-to-GDP ratio is very low, food vouchers can replace Naira for food purchases by the poor or any Nigerian in need.
“The cash-to-GDP ratio refers to the proportion of a country’s currency in circulation relative to its Gross Domestic Product (GDP).
“It is calculated by dividing the amount of cash in circulation by the country’s GDP. In Nigeria, this ratio is significantly lower than in many other countries, particularly developed ones, where it ranges between 5 per cent and 10 per cent,” he said.
According to Ibrahim, the President Bola Tinubu-led administration inherited an economy with a cash-to-GDP ratio of 1 per cent and has successfully increased it to 1.52 per cent through well-conceived policies and reforms.
While hailing President Tinubu’s efforts in revitalising the nation’s economy, Senator Ibrahim stressed the urgent need for the government to adopt the strategic idea of issuing food vouchers to poor citizens as palliatives.
He further admonished the government impose higher taxes on the wealthy, arguing that the rich in Nigeria are under-taxed, particularly those who indulge in luxury items such as private jets, expensive cars, and properties in exclusive locations like Dubai.
“While President Tinubu’s efforts to revitalising the nation’s economy are laudable, there is an urgent need for the government to adopt the strategic idea of issuing food vouchers to poor citizens as palliatives. Additionally, the government should impose higher taxes on the wealthy.
“In summary, the wealthy in Nigeria need to pay more taxes, and these gaps in the system must be addressed,” he added.