By Bello Shehu Tamaje
In response to the rising cost of food and essential commodities caused by Nigeria’s economic challenges, the Sokoto State Government is set to provide relief for its citizens through the establishment of discount outlets known as “Sauki Shops.”
These cooperative shops will enable the bulk purchase of goods at lower prices, helping to regulate market costs and counteract price manipulation by traders and suppliers.
The introduction of cooperative shops or discount shops where workers can purchase groceries and other household supplies (essential commodities) at reduced rates is a strategic measure to combat inflation and provide much-needed relief.
These initiatives, aimed at improving the welfare of workers and their families, are often driven by economic challenges. During periods of economic downturn, inflation soars, making it difficult for low-income families to cope.
Inflation can erode the purchasing power of workers’ salaries, leaving them unable to meet their families’ basic needs. Many workers often find themselves trapped in debt, further compounding their hardships. Since workers’ livelihoods are heavily dependent on their wages, economic instability renders their income insufficient and insignificant.
To address these challenges, establishing cooperative shops or outlets that offer affordable food items and groceries becomes essential. Such initiatives help stabilize the lives of workers and alleviate poverty among low-income earners.
When essential monthly needs are made more affordable, workers’ overall well-being improves. This also allows them to allocate resources to other important necessities such as healthcare, education, and social responsibilities, promoting better financial planning.
Moreover, these measures not only mitigate the adverse effects of an unhealthy economy but also foster goodwill between the government and the working class. This, in turn, boosts workers’ morale and productivity.
Additionally, cooperative shops can help curb inflation driven by exploitative traders and middlemen who take advantage of ordinary citizens by inflating commodity prices.
Now that the Sokoto State Government has taken the initiative to ease economic hardship for workers and curb the arbitrary increase in prices of essential commodities by exploitative traders through the establishment of cooperatives, it is undoubtedly a strategic plan borne out of the Governor’s foresight.
Leveraging this initiative, given its immense economic and social benefits, will protect workers from market exploitation. With this scheme, workers will have access to affordable options that fit within their earnings.
In the past, specifically in the mid-70s and early 80s, similar schemes operated in the state under the acronyms Sokoto State Supply Company (SOSCO) and Sokoto Cooperatives. Both served the people well by offering affordable and subsidized commodities.
At the time, SOSCO allocated essential commodities to institutions on a monthly basis, based on requests approved by the Ministry of Commerce. These requests typically included the names of workers, the items they needed, and the amounts paid.
While SOSCO supplied institutions, agencies, and its designated outlets such as TRADEV and HARRY BROTHERS. The Sokoto Cooperative focused on rural areas by establishing multipurpose cooperative shops, in addition to its headquarters in Sokoto.
Notably, there was price uniformity for food and household supplies across both rural and urban centers due to strict measures put in place to prevent infractions.
With the benefit of hindsight, this renewed initiative has been designed with careful consideration of all the factors that led to the collapse of SOSCO and Sokoto Cooperatives. Issues such as pilfering of supplies, mismanagement of funds, and widespread corruption have been thoroughly examined and necessary safeguards have been put in place to prevent abuse. This proactive approach ensures that the new scheme is more resilient and sustainable.
The scheme will commence in six local government areas, with each location staffed by three personnel, a storekeeper and two sales agents. Initially, the pilot program will be limited to workers and retirees, with plans to expand to the remaining local governments once logistical arrangements are finalized.
A key feature of this initiative is that purchases will be entirely cashless. Payments will be made using a dedicated card, with deductions taken directly from monthly salaries, not exceeding one-third of a worker’s income. Additionally, individuals can fund their cards independently, but purchases will be capped at N15,000 per transaction.
The concept of the low-price shop initiative was conceived by the Governor as part of his longstanding commitment to alleviating economic hardship for the people. To actualize this vision, he found the right partner in Dr. Aminu Aminu Bizi, the Chief Executive Officer of the international consortium, BIZI MOBILE.
After a thorough understanding of the requirements needed to bring the scheme to life, the two finalized the technical and administrative details and moved into action.
The government entrusted the implementation of the project to its Committee on Sales and Distribution of Food and Commodities, chaired by former Deputy Governor Alhaji Chiso Abdullahi.
To ensure the project’s success, the committee embarked on a study tour of states where similar initiatives had been planned such as Kano, Katsina, and Jigawa where it was successfully launched.
The government-appointed consultant, Dr. Aminu Aminu Bizi, alongside the committee, took the first crucial step by securing the necessary manpower to launch the initiative. Training was identified as a key component of the program’s blueprint and was immediately prioritized.
According to Dr. Aminu, key personnel have undergone rigorous training and have been equipped with the necessary skills to drive the program for optimal results.
He emphasized the importance of strict adherence to guidelines, warning that individuals would not be allowed to use another person’s card or purchase items by proxy. He also noted that registration for eligible beneficiaries would commence soon, with a restriction that those with outstanding bank loans must settle their debts before qualifying for the program.
Dr. Aminu further assured that they are working closely with relevant stakeholders, including officials from the Ministry of Finance, to ensure a smooth and transparent implementation.
