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An economist, Moses Umoru, has called for a new palliative system that would benefit all facets of the society, including the most vulnerable.
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He said the planned palliative system targeted exclusively at the poor would be counterproductive and that a more comprehensive approach to intervention was needed.
Umoru, who doubles as the Director General of the Franco-Nigeria Chamber of Commerce and Industry (FNCCI), urged the government to look at the micro-economic aspects of the current policy and adopt measures that would positively impact all segments of society.
He suggested that instead of focusing only on the poor, the government should consider subsidizing food production and reducing the cost of basic food items such as flour, bread and rice.
According to Umoru, over 45 per cent of personal incomes are spent on food items, hence subsidising production would go a long way in cushioning the effects of inflation and economic challenges on low-income earners.
He also called on the rich and middle classes to support the system, including reducing tax burdens and supporting employees during economic hardships.
He said there is increased pressure to lay off staff to reduce the cost during hardship.
“But if there is a policy to reduce tax (PAYE and company taxes), the effects of the subsidy removal will be reduced, thus eliminating the need for staff layoff,” he said.
With a more inclusive palliative system, Umoru believes that Nigeria can achieve greater prosperity for all.
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