Cash transfers alone won’t end poverty, ex-NAPEP boss urges FG to build income

Professor Magnus Kpakol, a former National Coordinator of the National Poverty Eradication Programme, has cautioned that cash transfers alone are insufficient to alleviate poverty in Nigeria. He urged the Federal Government to prioritize the development of productive capacity and the creation of sustainable incomes for its citizens. Kpakol, speaking to ARISE NEWS, stated that poverty reduction programs ought to be measured by whether beneficiaries can transition from welfare to economic independence.

While he commended the Federal Government's new poverty reduction program as a good initiative, Kpakol expressed that its communication to Nigerians required enhancement. He noted that the program seemed to be heading in the right direction, especially with its aim to help beneficiaries eventually leave welfare. However, he believed that the core of the program needed refinement, as it should focus on generating sustainable incomes and enabling beneficiaries to support others.

Kpakol emphasized that cash transfers, while providing a basic safety net for vulnerable Nigerians, are insufficient as a standalone poverty-reduction strategy. He compared cash transfers to a "basic floor" in a program to prevent citizens from falling deeper into poverty. According to Kpakol, the $40,000 cash transfer is insufficient and will not yield significant results.

Drawing on his experience at the National Poverty Eradication Programme (NAPEP), Kpakol suggested that poverty interventions require a "ladder" that enables beneficiaries to move from basic support to economic independence. He recalled introducing a basic income guarantee alongside a Poverty Reduction Accelerator Investment program during his tenure at NAPEP, emphasizing the importance of training, such as financial literacy and capital development, to empower beneficiaries.

Kpakol welcomed the current administration's intention to graduate beneficiaries from welfare, praising the recognition of the need to move them out of dependency.