Former Anambra State Governor Peter Obi has said the cash transfer strategies of the Federal Government to lift people out of poverty will not work out in Nigeria.
Obi, who spoke on Tuesday on Arise TV breakfast programme, “The Morning Show”, said the planned N5,000 disbursement to 24 million people for six months would not pull poor citizens out of poverty.
The Peoples Democratic Party (PDP) stalwart argued that for one to be classified as living in poverty, the person should be earning $1.9, which is approximately N800, or lower per day.
He said the amount, when multiplied by 30 days, is N24,000.
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Obi noted that giving someone N5,000 a month, when he needs at least N24,000 to survive, would have little or no effect, much less pull them out of poverty.
“Now, if you divide N5,000 by N400 exchange rate, it will give you $12.50. When you divide $12.50 by 30 days, it gives you (U.S) 42 cents. So, by sharing N5,000 per month to them, you are only giving them about 20 per cent of the $1.9 they require to live above poverty. Worse still, you are only paying them the money for six months.
“Any government that desires to pull its people out of poverty should adopt a properly articulated fiscal and monetary stimulus to support micro, small, medium enterprises and provide jobs that will pay people at least N25,000 per month,” Obi said.