COVID-19 CCT In Nigeria: Panacea For Financial Exclusion -By Tope Amujo

“The payment of COVID-19 Conditional Cash Transfer (CCT) in Nigeria is another systemic failure in our social policy“

At this age of technology and with the existence of competent human resources in the country, stacking cash of this sum to pay CCT as evidenced in the attached picture sourced from ChannelTV in April 1, 2020 is a sign of systemic failure.

The effort of the Federal Governmnent of Nigeria to earmark this huge sum for CCT to its vulnerable citizens affected by the COVID-19 pandemic is highly commendable. It takes a responsive government like we have in Nigeria to take such a drastic measure through the existing social policy, which no doubt is applaudable. This effort will provide liquidity in the economy and cushion the shock of this pandemic among other benefits to people’s livelihood/wellbeing.

However, as it is in other developed economies like USA and UK, payment of benefits to citizens (especially the vulnerables such as aged, disabled and homeless) should not be done via cash-handout. After the announcement of this support by the president in his well appraised presidential speech on COVID-19, which provides the most specific measures to curb the spread of this deadly pandemic, I have been waiting to see if the financial system is well equipped to implement this policy without compromise.

Although disappointing but not surprising, seeing the load of cash on the national television ready to disburse the CCT gives me a great concern about the failure of our financial system. While, the CBN is fronting the campiagn for financial Inclusion and cashless economy; where commercial banks are only using that to exploit the masses of unnecessary cashless charges, it is disappointing to see direct cash handout for a CCT that was conceptualized to be a transfer. Arguably some country still does handout but not the best; it’s highly risky and provide room for fruad and diversion

The CBN should have used this opportunity to achieve its financial inclusion policy and leverage on technology.

They should have used a timely IVID-Model: Identify, Verify, Include and Disburse.

Tope AMUJO