The Nigerian federal government recently announced that it would provide 8,000 Naira to about 12 million poor families in the country. The president made an announcement explaining that the money would go to poor families in the country for six months.
Recall that near the end of his predecessor’s term, former President Muhammadu Buhari asked the Senate to approve an $800 million loan from the World Bank to offset the impact of subsidy cuts. Former Finance, Budget and National Planning Minister Zainab Ahmed said the subsidy payments will come amid the planned subsidy abolition in June 2023.
President Tinub immediately worked to end the petrol subsidy, announcing it in his inaugural address on May 29. The president sent a letter to the Senate asking for Senate approval for an $800 million accommodative loan from the World Bank.
“You may also wish to know that the purpose of the facility is to expand coverage of shock-responsive safety net supports for all and vulnerable Nigerians and the cost of meeting basic needs,” President Tinubu said in a letter to the Senate.
Tinubu explained that “under the conditional cash transfer window of the programme, the federal government of Nigeria will transfer the sum of 8000 a month to 12 million poor and low-income households for a period of six months with a multiplying effect on about 60 million individuals.”
What You Need to Know About the Nigerian Federal Government’s $8,000 Cash Benefit
The programme is expected to stimulate economic activities in the informal sector and improve nutrition, health, and education outcomes for households who will be benefiting from the cash transfer programme.
A request was made to the Nigerian senate to kindly grant approvals for additional loan facilities of USD800milliom to be secured from world bank for the national social safety net programme.
The Federal Government of Nigeria has earmarked the sum of N500 billion extracted from the 2022 supplementary budget of N819 billion for the provision of palliative to vulnerable Nigerians to lessen the impact of the fuel subsidy removal.
However, the Nigerian government is still carrying out consultation with major stakeholders on how to implement this policy drive of the new administration. The President also mentioned that for transparency and credibility of the scheme, the money will be transferred to the household digitally.
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