This thing is simple, when you subsidise consumption ( wetin people dey consume ) per unit cost e.g Litre or per Kg, the people who have funds to buy more will enjoy more benefits. E.g N50 per bowl of jollof rice, if I am a millionaire, I will buy 200 bowls weekly and flex.
At the end of the week, I would have consumed N10,000 in subsidy as a millionaire. The poor guy who can only afford 2 bowls get N100. Millionaire gets N10,000, poor man gets N100.
Now look at the production line of jollof rice, from rice seedlings - preparation of jollof.
Now look at the production line of jollof rice, from rice seedlings - preparation of jollof.
If we subsidise or intervene with inputs
- Land : farmers will gain, jobs
- seedlings : farmers
- machinery : farmers, operators, mechanics, jobs etc.
- rice mills : jobs, millers, bags and processing companies
- Road to the farm or mill : increased output, more jobs more rice
- Land : farmers will gain, jobs
- seedlings : farmers
- machinery : farmers, operators, mechanics, jobs etc.
- rice mills : jobs, millers, bags and processing companies
- Road to the farm or mill : increased output, more jobs more rice
At the end of the day the price of jollof rice will come down significantly without pushing subsidy to the rich. We would have created a value chain, employment, skill upgrade with better output.
It's common sense.
It's common sense.
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