In a significant move, the World Bank has initiated the release of $800 million earmarked for the National Social Safety Net Program-Scale Up in Nigeria. As of now, approximately $300 million has been disbursed, signaling a crucial step in the Federal Government’s plan to implement a monthly cash transfer program for the country’s poor and vulnerable citizens. The program, launched by President Bola Tinubu, aims to assist 15 million households affected by recent policies, including the fuel subsidy removal.
The fund, a conditional cash transfer, comes at a time when the country grapples with economic hardships. The disbursement, constituting 37.5% of the total loan, leaves a pending balance of $442.88 million. The aid package, set to alleviate the impact of recent economic policies, has gained momentum with tangible steps toward implementation.
To ensure the effective execution of the cash transfer program, the Federal Government is actively seeking the services of a consulting firm for the upgrade of the system. This move comes in response to the decision by the National Economic Council not to use the social register from the previous administration, citing credibility concerns.
The financing agreement outlines a repayment plan in installments, with the first payment due on January 15, 2027, and the last on July 15, 2051. The terms include commitment charges, service charges, and interest charges on the withdrawn credit balance, with a gradual increase over time.
As the Federal Government collaborates with the World Bank to disburse this financial aid, it marks a crucial step in addressing the economic challenges faced by vulnerable Nigerians. The implementation of the cash transfer program and the system upgrade underscore a commitment to providing timely support in the face of evolving economic dynamics.
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