The Finance Minister and Coordinating Minister of the Economy, Wale Edun, has stated that approximately only 5% of people in Nigeria have more than N500,000 in their bank accounts.
Edun, who made this disclosure in an interview with Channels TV, said the federal government reforms is to rectify the economic imbalances that disproportionately favour a small group of elites in the last eight years over the majority of citizens.
He further remarked that the aim of microeconomic reforms is to ensure government revenue is directed into the government’s treasury.
The minister said that the reforms are corrective measures to mop up the liquidity in the economy that is not tied to production or supply of goods and services, adding that these imbalances only benefit a few people in the economy.
- “There has been an effort to ensure that the people’s money is not in the hands of a few. And on that point, I must emphasize that when we talk about the last eight years before Mr. President came to power, there was this liquidity built up.
- “The Issue was that the funds were going to a few. Only about 5% of the population have bank accounts that have more than half a million in them. So, the majority was left out for eight years. They are on the sidelines while a small minority enjoyed.
- “That is the major correction being made by Mr. President now. That is the major microeconomic reforms that have put in place.
- “So therefore, government revenue that was outside the federal government consolidated revenue funds have been brought back to the government funds,” Edun said.
FG to pay 25,000 to 15 million households in 3 months
Speaking further, he said president Tinubu is working to ameliorate the poverty of the masses as well as the high cost of living by providing a palliative package of N25,000 to N15 million households for the next three months.
He noted that the government will also provide grants to artisans, traders and nano business owners grants to help boost their small businesses and improve their livelihood.
According to him, the system of these intervention programmes and payment have been revamped to ensure the funds get to the targeted beneficiaries.
He said:
- “Food prices have gone up and the people’s purchasing power is limited and that is what Mr. President is speaking to through the intervention programmes of direct payment of N75,000 each over three months. That is, N25,000 a month to 15 million households.
- “And each household is about 5 people and that is effectively providing funding for N75 million people.
- “That programme has been revamped to make sure that it is robust, that each beneficiary will have a NIN number or BVN number or access to mobile money account so that we are sure that the right people are paid and the system is fraud-free.”
What you should know
- Following President Bola Tinubu’s move to scrap a popular yet costly fuel subsidy last May, coupled with his administration’s decision to lift restrictions on currency trading, petrol prices skyrocketed, more than tripling in value.
- Nigeria currently grapples with the highest inflation rate in decades, with core inflation standing at 29.9% and food inflation is 35.41%.
- Meanwhile, the president recently announced the release of 42,000 metric tonnes of grains to crash the price of food items, adding that his administration will not resort to food importation.
