The Senator representing Ondo South in National Assembly, Jimoh Ibrahim has advised the Nigerian government to collapse the palliative accounts with food vouchers as a way of curbing billions of naira being mismanaged
Senator Ibrahim , who chairs the Senate Committee on Inter – Parliamentary Affairs, proffered the multi – dimensional economic solutions at an interactive session with journalists covering the Senate on Wednesday.
He said apart from helping to put an end to the leaking baskets of palliatives being churned out to poor Nigerians on yearly basis , the food voucher , would also help to ameliorate the problem of food insecurity in the country and perfectly fill the yarning gap of cash to GDP ratio in the country , which according to him , is 1.5% now .
“Food Vouchers if introduced and issued by the federal government to poor Nigerians across the 36 States of the Country and 774 Local Government Councils , would serve the purpose which is meant for , as against N15billion palliatives given to State governors by the Federal Government with attendant mismanagement or even outright diversion .
“Secondly, Since our Cash to GDP ratio in Nigeria is very small, Food vouchers will replace Naira for food purchase by the poor or any Nigerian given.
“Cash to GDP ratio means , country’s currency in circulation to its Gross Domestic Product .
“It is calculated by dividing the amount of cash in circulation by the Country’s Gross Domestic Product , which is very low in Nigeria , compared to many other countries , particularly the developed ones , with 5 to 10% ratio .
“The Present administration headed by President Bola Tinubu , inherited an economy of cash to GDP ratio of 1% and has succeeded to increase it to 1.52% , and putting a series of well envisioned policies and reforms on ground for further increase
“As laudable as the efforts of President Tinubu are , in turning the Nation’s economy around , there is a need for the government to buy into the strategic idea of issuance of food vouchers to poor citizens as palliatives and also tax rich more .
“In fact, the rich in Nigeria are under taxed , particularly those buying and using luxury things like private jets , highly expensive cars and buying houses in Dubai and other exclusive places in the world .
“In a nutshell, the rich in Nigeria , need to pay more taxes and those lacuna need to be tackled”, he stressed .
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