₦‎8000 cash transfer is a complete scam – Kaduna Governor, Uba Sani

Governor Uba Sani of Kaduna state has voiced strong opposition to the proposed cash transfer policy of the Federal Government, referring to it as a scam. He made these remarks during an interview with Arise Television’s News Night on Friday.

Governor Sani expressed his concerns about the cash transfer program, particularly during the current critical time. He argued that cash transfers should not be the primary approach, considering that a significant portion of the rural population in the North West, about 70 to 75 percent, are financially excluded and do not even have bank accounts. In his view, transferring money to people without proper financial inclusion could result in the funds going to the wrong recipients.

The governor said, “My position has always been that, at this critical time, cash transfer should not be something that we should bring up, completely. I think that cash transfer for me, in my opinion, is a scam. Completely is a scam. I can be very certain about that, because who are you transferring the money to?

Drawing from his experience as the Chairman of the Committee of Banking for four years, where he oversaw the Central Bank and all commercial sectors of Nigeria’s economy, the governor emphasized the importance of working towards financial inclusion for vulnerable communities. He called on development partners like the World Bank to invest more resources in bringing more people into the financial services system and ensuring they have bank accounts.

The cash transfer policy initially proposed by President Bola Tinubu aimed to provide a monthly N8,000 transfer to 12 million of the poorest households in the country for six months, as a measure to mitigate the effects of fuel subsidy removal. However, the plan faced public outcry, prompting the Federal Government to announce a review of the program.

In response to the fuel subsidy removal and petrol price hike, the National Executive Council (NEC) considered palliative measures for Nigerians. These measures included the use of state social registers for cash transfers, subject to each state’s unique circumstances. Additionally, the government introduced a six-month cash award policy for public servants and distributed food items, grains, and fertilizers through state governments at rates acquired from the National Emergency Management Agency (NEMA). States were also encouraged to focus on energy transition plans in the transport sector.