The Senate, on Thursday, significantly advanced legislation on a new bill seeking to establish a social security system for Nigerian unemployed and aged.
The bill is sponsored by Anyim Ude (PDP, Ebonyi State). The bill proposes to set up a social security system that will enable the government pay out N15 000 or at least N10 000 monthly to unemployed graduates and persons above 60 in Nigeria.
Mr Ude, 69, was inspired to draft the bill after listening to contributions of a Senate motion on the corruption of the National Poverty Eradication Program (NAPEP) in February last year.
"It is estimated that over 70 per cent of our people live below poverty level and that is why I agree with the passionate suggestion -- that day ...that the Senate should devote one week of its session to address the issue of poverty and corruption in this country." Mr Ude said.
"This bill is another opportunity to put smiles on the faces of the aged and unemployed.
"Our children have no access to basic health care and education, unless their parents have money. Our system has made no provision backed by law for the unemployed, the destitute, the poor, and the aged. These crops of people are on their own, without hope or future. Some of them take their frustration out on the society by engaging in social vices and the society pays dearly for this," Mr Ude argued in his debate.
He added that even though it will cost the nation money, Nigeria will be better off as exemplified by the benefits other countries are reaping from similar systems.
He cited African countries benefiting from the scheme to include: Malawai, South Africa, Kenya, Mauritius, Botswana, Republic of Seychelles, and Libya.
The bill proposes that the beneficiaries of the system will be unemployed graduates of the colleges of education, polytechnics, and the universities, and people above 60 years.
The cost
The bill suggests two wages scenarios: a minimum of N10 000 and a maximum of N15 000 monthly. According to Mr Ude's estimations, based on a population growth rate of 2.5 per cent per annum, the scheme would cost the nation N77 billion in the next five years, starting from January next year, if the government decided to pay every beneficiary N10 000.
If the government decides to pay the maximum N15 000, it will cost the government N111.6 billion for five years.
He estimated that in 2011, it will cost the government N12.6 billion or N17.7 billion if they pay out N10 000 or N15 000 respectively. In 2012, it will cost 13.4 billion or 19.0 billion. In 2013, the scheme will cost 15.1 billion or 22.0 billion. In 2014 it will cost 17.05 billion or 24.96 billion. Arguing in favour of the bill, Uche Chukwumerije (PPA Abia State) said that it will require only a fraction of the loot politicians and past leaders robbed the nation of to run the scheme.
Pessimistic senators
Although the bill was accepted by majority of the senators, some were pessimistic and sceptic about the practicability of the recommendations of the bill.
Kabiru Gaya (ANPP Kano State) argued that it is too expensive for the nation. He said that considering that Nigeria produces about 70 000 graduates annually from the three categories of tertiary institutions in the country, the expenses will be too much.
Nicholas Ugbane (PDP Kogi State) argued that although the idea is good, it might be very difficult to distinguish the intended beneficiaries of the scheme.
"Do we have a reliable and dependable statistics of the unemployed? Can we identify a Nigerian?" he asked. "The idea is laudable but the kind of system we have will make it difficult to run." Others, however, argued that the cost of not instituting the social security system is higher than the cost of running it. They also argued that the possibility of corrupting the system should not deter the bill.
"You cannot rule out fraud, but the fear of fraud cannot overrule the importance of the bill." Bassey Ewa-Henshaw (PDP Cross River State) argued.
The bill was later committed to three Senate committees who would organise a public hearing on it and report back to the Senate for passage into law. It is, however, very unlikely that the bill will be passed into law before the expiration of the present Senate because the committees working on the bill were not given a time limit. High priority was not placed on the bill and the Senate has only one year left in their tenure.
Source:234next.com
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