ICAN advises FG on palliatives for low-income earners

The Institute of Chartered Accountants of Nigeria (ICAN) has advised the Federal Government to implement measures to support low-income earners in response to the $800 million World Bank loan. ICAN emphasized the importance of credible palliatives to alleviate the impact on vulnerable populations beyond the civil service.

They suggested using the savings from subsidy removal to design and implement palliatives for low-income earners, particularly in urban areas where the cost of living is expected to rise significantly.

The government should also introduce policies to reduce transportation and food costs, implementing palliatives at both the national and sub-national levels. ICAN stressed the need to measure the cost of these interventions carefully to avoid reintroducing another form of subsidy. They further stated their disagreement with borrowing $800 million for palliatives when savings from subsidy removal could be utilized instead, thus preventing additional debt and rising debt service costs.

ICAN also proposed that for small and medium-sized enterprises (SMEs), a palliative could involve pausing recent tax increases, providing tax rebates, and investing in infrastructure.

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