–after weakness of proposal was exposed by Dr. Jagdeo

ALLIANCE for Change (AFC) leader, Nigel Hughes has recently abandoned his initial stance on the direct distribution of oil revenues to Guyanese citizens.
Initially, Hughes had supported the idea of providing direct cash transfers from oil revenues to the populace.
On June 29, 2024, he proposed, “Let us give each and every citizen a direct cash grant to their account.”

Further advocating this position on social media on July 24, 2024, Hughes suggested that the government should immediately introduce legislation to allocate a portion of the annual revenue, G$568.03 billion, directly to every adult citizen.
He proposed that these payments should not exceed 10.5 per cent of the annual transfer to the Natural Resource Fund (NRF).
However, during a public meeting in Linden on August 16, 2024, Hughes flip-flopped on his position, noting: “We are not going to do it recklessly. Instead, we should implement legislation and consult economists to determine the appropriate percentage of oil revenue that should be distributed to each citizen.”

Previously advocating for a 10.5 per cent distribution, Hughes now suggests that economists should decide the percentage.
This change in position follows criticism from People’s Progressive Party (PPP) General Secretary, Dr. Bharrat Jagdeo, who had dismissed the 10.5 per cent proposal.
Dr. Jagdeo argued that the amount received by citizens would be minimal compared to government spending on sectors like health, education, and salaries.

On July 25, 2024, he said, “If you take $300 billion today and allocate 10 per cent, which is $30 billion, and divide it among 850,000 people, each would receive about G$35,000 per year. If the amount were doubled next year, it would be $70,000. This proposal doesn’t account for years without revenue or potential drops in oil prices.”

Additionally, Hughes’ position on direct cash transfers has caused friction with other political figures.
Aubrey Norton, Leader of the People’s National Congress Reform (PNCR) and head of the APNU+AFC Coalition, argues that cash grants alone won’t resolve Guyana’s issues.
Norton asserted on August 1, 2024, “Cash grants won’t alleviate poverty or address the high cost of living. What is needed are effective government policies.”

Hughes also faces disagreement from his own party’s General Secretary Raphael Trotman, who previously served as Natural Resources Minister. Trotman had opposed using oil revenue for cash transfers, stating, “Handing out cash can lead to complacency and poor spending habits.”
Guyana’s 2024 national budget has reached a record high of US$5.496 billion (G$1.146 trillion), reflecting a 47 per cent increase from the 2023 budget of US$3.75 billion (G$781.9 billion). Approximately 29 per cent of this budget is funded by oil revenues.
The PPP/C Administration is channeling oil revenue into capital investments in education, healthcare, infrastructure, and other key projects.

Dr. Jagdeo explained: “Capital works are intended for future development, supporting new industries, and improving services. The previous administration did not share this objective. We have committed to using oil revenue for expanding infrastructure, healthcare, education, and economic diversification.”

He also highlighted that the NRF is now managed by an independent board, unlike during the previous administration.
Dr. Jagdeo noted: “The Finance Minister oversees the Fund, but an independent board, including representatives from the private sector and parliament, manages it. The Opposition also has a nominee on the Oversight Committee to ensure proper utilisation of the funds.”