We got this thread on the recent Trade Moni by President Muhammadu Buhari’s government that is led by Vice-President Yemi Osinbajo.
While this has received various interpretations, this thread by Village Headmaster explains more about it. Full Credit goes to him.
I've noticed a lot of outcry on this #TraderMoni and here is my view.
The Trader Moni scheme is designed to help petty traders expand their trade through the provision of collateral free loans of starting with N10,000. pic.twitter.com/H5i7GIGUQK
— The Village Headmaster (@DVillageMaster) September 6, 2018
I’ve noticed a lot of outcry on this #TraderMoni and here is my view. Thread!!!!! The Trader Moni scheme is designed to help petty traders expand their trade through the provision of collateral free loans of starting with N10,000.
Trader Moni was launched in partnership with the Bank of Industry @BOINigeria in order to enlarge government’s “financial inclusion agenda down to the grassroots, the bottom of the ladder, considering the contribution of petty traders to economic development.
Under the scheme, beneficiaries can get access to a higher facility ranging from N15,000 to N50,000 when they repay N10,000 within the stipulated time period (6 months). It is worthy to note that something similar to #trademoni has started in some developed countries years back
In Brazil, the “BOLSA FAMILIA” is a social welfare program of the Brazilian government, part of the Fome Zero network of federal assistance programs. Bolsa Família provides financial aid to poor Brazilian families; if they have children, families must ensure that the children attend school and are vaccinated. If they exceed the total of permitted school absences, they are dropped from the program and their funds are suspended.
The program attempts to both reduce short-term poverty by direct cash transfers and fight long-term poverty by increasing human capital among the poor through conditional cash transfers.
The BOLSA FAMÍLIA program has been mentioned as one factor contributing to the reduction of poverty in Brazil, which fell 27.7% during the first term in the Lula administration.
In 2006 the Center for Political Studies of the Getulio Vargas Foundation published a study showing that there was a sharp reduction in the number of people in poverty in Brazil btw 2003-2005. Other factors include improvement in the job market and real gains on the Minimum Wage.
About 12 million Brazilian families receive funds from BOLSA FAMÍLIA, which has been described as “the largest programme of its kind in the world.” By February 2011, 26% of the Brazilian population were covered by the program.
Another good example of a scheme Similar to Tradermoni is the OPORTUNIDADES which is run in Mexico. Oportunidades is a government social assistance program in Mexico founded in 2002, based on a previous program called Progresa, created in 1997.
Designed to target poverty by providing cash payments to families in exchange for school attendance, health clinic visits, and nutrition support. OPORTUNIDADES is credited with decreasing poverty, improving health and educational attainment in regions where it has been deployed.
Program requirements target measures considered most likely to lift families out of poverty, focusing on health, nutrition and children’s education. OPORTUNIDADES has become a model for programs instituted in other countries, such as a pilot program in New York City, the Opportunity NYC, and the Social Protection Network in Nicaragua. Other countries that have instituted similar conditional cash transfer programs include Peru, Honduras, Jamaica, Chile, Malawi, and Zambia.
It’s laughable many of the people criticizing this scheme don’t have connections to the grassroots, there happens to be a sort of microfinance bank in the South West Region of Nigeria called LAPO, what they do is lend money to majorly petty traders of which the interest rates are extremely high and makes it difficult for these traders to pay back, which most times result in forfeiture of properties or arrest by law enforcement officers and some people even die as a result of trying to pay back their debts.
I commend the FG on this scheme and I believe it can only get better. If the beneficiaries are not complaining or revolting against it I see no reason why it should be anyone’s headache.
“One can choose to go back toward safety or forward toward growth. Growth must be chosen again and again”. Thanks for reading.
Credit: @DVillageHeadMaster on Twitter