Palliatives or Placebos?

Using palliatives to calm the effects of harsh economic policies has become an all too frequent occurrence in Nigeria. Not too long ago, the federal government proposed monetary palliatives to soften the harrowing consequences of removing the fuel subsidy. No doubt, palliatives can soften the hardship suffered in the country, but only for a brief time. Despite the palliative schemes that have been implemented over the years, more of Nigeria’s population keeps falling into the poverty bracket. Aside from the inflation rate, which, according to the National Bureau of Statistics, has increased in 2024, food crises, violent conflicts and rough climate change are some of the factors that keep Nigeria’s poor population trapped in cycles of poverty with no upward mobility.

Recently, the federal government began disbursement of 200 billion Naira in palliative loans to mitigate the effects of the hardship in the country. Such funding could be put into building resilience structures. Though well-intentioned, palliative measures are not a panacea for Nigeria’s deeply entrenched economic challenges. While they may temporarily relieve individuals and communities grappling with hardship, they fail to address the country’s systemic issues that perpetuate poverty, inequality, and underdevelopment. Sustainable solutions require structural reforms, long-term investments, and strategic policy interventions that tackle root causes rather than merely alleviating symptoms. Therefore, palliatives are like band-aid solutions to Nigeria’s deep-seated humanitarian crisis.

Many interrelated problems characterise Nigeria’s economy, including overreliance on oil exports, weak infrastructure, rampant corruption, high unemployment rates, and a large informal sector. These issues have persisted for decades, undermining the country’s ability to achieve inclusive growth and improve living standards for its citizens. In this context, palliative measures, such as cash transfers or food aid, offer temporary relief but do little to address the underlying structural deficiencies perpetuating economic hardship.

One of the primary limitations of palliatives is their short-term nature. While they may provide immediate assistance to those in need, they do not offer sustainable pathways out of poverty. Without accompanying initiatives to promote economic empowerment, job creation, skills development, and entrepreneurship, individuals will likely remain trapped in cycles of dependency and vulnerability. Sustainable economic development requires investments in human capital, infrastructure, and productive sectors of the economy to generate employment opportunities and stimulate growth.

Moreover, palliative schemes often fail to effectively target the most vulnerable segments of the population. In many cases, distribution mechanisms are inefficient, prone to corruption, and subject to political manipulation, diverting resources from those who need them most. Without robust targeting mechanisms and transparent delivery systems, palliative measures risk exacerbating inequality and widening the gap between the haves and the have-nots. More often than not, complaints of misappropriation have risen. Officials in charge of distributing palliatives hoard the goods for themselves, and sharing units become battlegrounds of greed that leave corpses in the aftermath.

Several relevant stakeholders have spoken up about the demeaning and ineffective nature of palliatives, constantly edging the government to do better. Policymakers must adopt a multifaceted approach that combines short-term relief measures with long-term structural reforms. This approach should prioritise investments in critical areas such as education, healthcare, infrastructure, agriculture, and small-scale enterprises to promote inclusive growth and sustainable development. Additionally, efforts to combat corruption, improve governance, and enhance the business environment are essential for creating an enabling environment for economic prosperity.

Nigeria must diversify its economy away from its heavy reliance on oil exports and towards sectors with more potential for job creation and value addition. This requires strategic planning, investment in innovation and technology, and support for small and medium-sized enterprises (SMEs) to thrive. In February, the government revealed its intention to support the SME industry by infusing 40 billion Naira for its growth. Though slow to action, such initiatives are a better remedy for hardship than meagre palliative schemes. In ensuring economic safety for the country’s impoverished population, it is vital to build resilience against the violent conflicts that permeate the country. Factors such as climate change also worsen the vulnerability of Nigeria’s poor population. Nigeria’s climate has been changing. This change is characterised by variable rainfall, rising sea levels, flooding, desertification, land degradation, and other effects. Nigeria should focus on reducing its vulnerability to external shocks, building resilience and creating opportunities for sustainable livelihoods.

While palliative measures may offer temporary relief to those in need, they are not a substitute for comprehensive economic reforms to address the root causes of poverty and inequality in Nigeria. Sustainable solutions require long-term investments in human capital, infrastructure, and productive sectors of the economy, as well as efforts to combat corruption, improve governance, and foster economic diversification. Only by addressing these underlying challenges can Nigeria build a more prosperous and equitable future for all its citizens.