The Day Credit Turns Against Us

First Lady Oluremi Tinubu’s comment about grants helping people start small businesses like akara, roasted corn, and kuli-kuli has sparked debate. Some people see the examples as too small for the hardship Nigerians face. Others argue that for a family with nothing, even a small grant can be a real beginning. Both sides have a point.

Small money can matter. Many Nigerian families survive because someone fries akara in the morning, sells corn by the roadside, or runs a small shop at home. That effort deserves respect. But we should also be honest: small grants alone cannot fix a struggling economy. This leads to a bigger lesson.

In economics, the real question is not only what money does today, but what it produces tomorrow. A grant that helps someone start trading is useful. A loan that helps a business expand is useful too. But if money flows without productivity, support, and a stronger economic environment, today’s relief can become tomorrow’s disappointment. The same applies to bank lending.

Governments often celebrate when banks give out more loans. It sounds positive because credit can help businesses grow, families buy what they need, and the economy pick up speed. But history shows that poorly managed credit can create problems later. Many financial crises began with easy money, loud optimism, and weak oversight.

Economists use a method called Local Projections to study this kind of problem. The idea is simple: do not only ask what happens today. Ask what happens one year, two years, or five years later. Did the money create real growth, or did it only produce a short burst of activity? Nigeria needs that kind of thinking.

Grants, loans, and support programmes should not be measured only by how many people receive them. We should ask whether they help people build something lasting.

Akara, corn, and kuli-kuli may feed a family today. But Nigeria needs policies that help small traders become stable businesses, help borrowers repay without drowning, and ensure credit flows into productive sectors.

The real question is not whether small businesses matter. They do. The real issue is whether our economic policies are building strength for the future or simply helping us survive today.

Abidemi is the Managing Editor @ Newspot Nigeria