Key points
- President Buhari had in his request letter to the Senate, stated that the additional $800 million loan from the World Bank is for the National Social Safety Net Program.
- He stated that the National Social Security Program aims to expand the coverage of crisis-responding safety net support among poor and vulnerable Nigerians.
- Buhari said that the Federal Government, under the conditional cash transfer window of the programme, will transfer the sum of N5,000 every month to 10.2 million poor and low-income households over a period of 6 months.
President Muhammadu Buhari has written a letter to the Senate requesting its approval for the $800 million World Bank loan that is intended to help cushion the effect of the removal of gasoline subsidies on poor and vulnerable Nigerians.
This follows the Federal Government’s earlier announcement of $800 million relief aid from the World Bank targeting 50 million vulnerable Nigerians or 10 million households before the removal of the gasoline subsidy.
President Buhari’s request is contained in a letter read to the senators by Senate President Ahmad Lawan during plenary on Wednesday, May 10, 2023.
President Buhari in the letter said the funds are for the National Social Safety Net Programme, which aims to expand coverage of crisis-responding safety net support among poor and vulnerable Nigerians.
Additional $800 million loan for poor and vulnerable Nigerians
- President Buhari’s letter reads in part: “Note that the Federal Executive Council approved an additional loan line in the amount of USD 800 million to be guaranteed from the World Bank, for the National Social Safety Net Program and the need to request its consideration and approval to guarantee an implementation early.
- “The Senate may wish to note that the program is intended to broaden the coverage of crisis-responding safety net support among poor and vulnerable Nigerians. This will help them meet the costs of meeting basic needs.
- “You may want to note that, the Federal Government of Nigeria, under the conditional cash transfer window of the programme, will transfer the sum of N5,000 per month to 10.2 million poor and low-income households for a period of six months , with a multiplier effect in about 60 million individuals. To ensure the credibility of the process, digital transfers will be made directly to the recipients’ mobile accounts and wallets.
- “The NASSP, being a social intervention program, will stimulate activities in the informal sector, improve nutrition, health, education and the development of human capital in beneficiary households.”
Buhari added,
- “Given the above, I wish to kindly invite the Senate to approve an additional loan line in the amount of USD 800 million to be guaranteed from the World Bank for the National Social Safety Net Program”, expressing the hope that the application “will receive expedited consideration by the Senate.”
what you should know
- The Minister of Finance, Budget and National Planning, Zainab Ahmed, had revealed in early April 2023 that the Federal Government had secured the sum of $800 million from the World Bank to provide post-oil subsidy palliatives for more than 50 million Nigerians before the full deregulation of the downstream sector of the oil industry in June 2023.
- Ahmed said the $800 million fund is the first tranche of palliatives ready to be disbursed to 10 million households in the form of cash.
- The National Economic Council (NEC), which is made up of 36 state governors, the CBN Governor and other senior government officials and is chaired by the Vice President, on April 27 suspended the planned elimination of the subsidy on petroleum products for June 2023.
- The finance minister, who announced the decision, said the NEC concluded at the meeting that the time was not ripe for action.
- Meanwhile, there were earlier reports that Nigeria’s loans from the World Bank had risen to $14.34 billion as of March 31, 2023.
- This was an increase in debt of $13.930 million recorded by the Debt Management Office as of December 31, 2022.
