ICAN Advises Nigerian Government to Implement Palliatives for Low-Income Earners

By: Ogunleye Oluwapelumi

The Institute of Chartered Accountants of Nigeria (ICAN) has called on the Nigerian government to provide palliatives for low-income earners in order to cushion the impact of subsidy removal. The call was made in an 11-point action plan communiqué that was issued by the institute. According to ICAN, the government should implement credible palliatives for low-income earners, especially in cities and towns where the cost of living is expected to rise significantly. The institute also advised the government to introduce policies that will reduce the cost of transportation and food.

ICAN further stated that palliatives should be implemented at both the national and sub-national levels. The institute also urged the government to be mindful of the cost of the palliatives that will be introduced, in order to avoid re-introducing another form of subsidy.

ICAN stressed the importance of using savings from subsidy removal to fund the palliatives, rather than borrowing $800m from the World Bank. According to the institute, this will save the country from further debt and rising debt service costs.

In conclusion, ICAN has advised the Nigerian government to provide credible palliatives for low-income earners in order to reduce the impact of subsidy removal. The institute has called on the government to implement policies that will bring down the cost of transportation and food, and to be mindful of the cost of the palliatives that will be introduced. ICAN has also urged the government to use savings from subsidy removal to fund the palliatives, rather than borrowing $800m from the World Bank.