The Senator representing Ondo South, Jimoh Ibrahim (APC) has urged the Federal Government to replace cash-based palliative programs with food vouchers to curb the mismanagement of billions of naira allocated annually to support poor Nigerians.
Speaking at a media briefing in the Senate on Wednesday, Ibrahim highlighted how food vouchers could eliminate waste, improve food security, and boost Nigeria’s cash-to-GDP ratio.
Ibrahim, who chairs the Senate Committee on Inter-Parliamentary Affairs, criticized the current palliative distribution system, arguing that it often results in mismanagement and diversion of funds.
He proposed food vouchers as a more effective alternative.
“Food vouchers distributed directly to poor Nigerians across all 36 states and 774 local government areas will ensure transparency and accountability, unlike the N15 billion palliatives given to state governors that are often mishandled,” he said.
Ibrahim emphasized that Nigeria’s cash-to-GDP ratio remains alarmingly low at 1.52%, compared to 5–10% in developed countries.
He explained that replacing cash with food vouchers would reduce the volume of money in circulation, thereby improving the ratio and strengthening the economy.
“Our cash-to-GDP ratio was only 1% when President Tinubu took office, but it has since increased to 1.52%. Food vouchers will further boost this, offering a dual benefit of reducing cash reliance and addressing food insecurity,” he noted.
Higher Taxes for the Wealthy
The senator also called for increased taxation on the wealthy, particularly those who own luxury assets such as private jets and expensive properties.
He argued that Nigeria’s tax system does not adequately target the rich.
“The wealthy in Nigeria are under-taxed. Those purchasing luxury items should contribute more to national development. Closing these loopholes will generate additional revenue,” he added.
Ibrahim lauded the Tinubu administration’s economic reforms but insisted that introducing food vouchers would complement these efforts by ensuring that palliatives reach the most vulnerable.
“President Tinubu’s reforms are commendable, but adopting food vouchers will enhance transparency and ensure that the funds are used effectively to improve the lives of ordinary Nigerians,” he concluded.
