Infostride News has recently reported that the World Bank has officially disbursed approximately $299.99 million to Nigeria, marking a substantial step in the implementation of the National Social Safety Net Program-Scale Up. The disbursement, as disclosed by a source within the World Bank, is part of the approved $800 million allocated for this crucial program.
As of now, 37.5% of the total loan has been disbursed, leaving a pending balance of around $442.88 million. This financial injection comes at a critical time for Nigeria, with the National Social Safety Net Programme-Scale Up scheduled to run until June 30, 2024. The responsibility of executing this program lies with the Federal Ministry of Humanitarian Affairs & Poverty Alleviation.
The primary objective of this $800 million program is to facilitate a monthly cash transfer initiative aimed at supporting poor and vulnerable Nigerians who have been disproportionately affected by recent policies, such as the removal of the fuel subsidy. President Bola Tinubu, in October 2023, officially launched the promised conditional cash transfer program, targeting 15 million households nationwide, each slated to receive N75,000 within a three-month period.
In an effort to enhance the efficiency and effectiveness of the cash transfer program, the Federal Government is currently in the process of engaging the services of a consulting firm for a system upgrade. According to information sourced from the World Bank, the consulting services will encompass the development, implementation, deployment, and maintenance of a user-friendly, interactive, web-based Management Information System (MIS). This upgraded MIS system aims to support the activities of the National Social Safety Net Program-Scale Up for the effective and efficient delivery of program benefits to the poor and vulnerable.
The World Bank financing document outlines the importance of the upgrade, citing the National Economic Council’s decision not to utilize the social register from the previous administration of Muhammadu Buhari for the conditional cash transfer program due to credibility concerns.
Delving deeper into the financing agreement for the National Social Safety Net Program-Scale Up, the document reveals a repayment plan structured in installments. The first payment is scheduled for January 15, 2027, and the final payment is due on July 15, 2051. The terms of the $800 million loan include a maximum commitment charge rate of one-half of one per cent per annum on the Unwithdrawn Financing Balance, a service charge of three-fourths of one per cent per annum on the withdrawn credit balance, and an interest charge of one and a quarter per cent per annum on the withdrawn credit balance.
Furthermore, a percentage of the principal amount of the loan, in addition to other charges, is expected to increase over time. The first payment is set at 1.65% of the principal amount, with the last payment escalating to 3.40%.
This significant financial injection and the corresponding system upgrade demonstrate the government’s commitment to providing tangible support to those most in need. As Nigeria navigates the economic challenges, particularly those stemming from policy changes such as the fuel subsidy removal, these initiatives aim to alleviate the burden on vulnerable segments of the population. The successful implementation of the National Social Safety Net Program-Scale Up is anticipated to have a positive impact on the lives of millions of Nigerians, fostering economic resilience and social well-being.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate