Grants, Palliatives Not Economically Sustainable, Expert Insists 

 Omolabake Fasogbon

The Managing Director of Update Africa Communications, Dr. Joseph Effiong, has asked the federal government to move away from grants and other philanthropic gestures to finding lasting solutions to economic challenges. 

The policy analyst expressed concern about how present administration has persistently rolled out grants and palliatives, asserting that it has not improved the economic conditions of Nigerians. 

Effiong, said this in reaction to the recent declaration by Nigeria’s First Lady, Senator Oluremi to commence disbursement of N50,000 grants to 1,000 women petty traders across the country as part of the Renewed Hope Initiative (RNI). 

Before this development, the federal government had approved the sum of N200 billion grant support for MSMEs and manufacturers, with nano businesses entitled to N50, 000 each. 

Corroborating his stance, Effiong cited a study by the National Bureau of Economic Research asserting that philanthropic efforts have limited impacts on poverty reduction and insufficient to drive broad-based economic growth. 

He said, “Just in June, the federal government rolled out N1 trillion palliative part of which 3.7 million families across the country are to get N50,000 each , the President has also just approved a monthly stipend of N50,000 for 10,000 youths in the Niger Delta.

“As much as I’m not against helping the poor, for how long do we continue to rip the economy from measures that are not economically rewarding in the long run? “

Effiong tasked governments on policies and reforms that would foster enabling environment for businesses to thrive and at the same time have a multiplier effects that would spread to the grassroots.

“In today’s economic climate, a one-time grant of N50,000 is unlikely to be sufficient to drive substantial growth or transformation in businesses. Many recipients would likely utilise the funds for immediate needs, only to revert to their previous circumstances, thereby failing to achieve any lasting or sustainable impact.

“The token amount, though well-intentioned, may not be enough to catalyse meaningful change or empower business owners to break free from their current challenges, “he said. 

He advised government to switch from short-term placation to concrete actions such as easing access to affordable credit, business training and mentorship, lifting infrastructure and transportation systems in local markets.