The Federal Government has confirmed scaling up her social investment program (direct transfer to vulnerable citizens) to 20 million Nigerian households.
The Minister of Finance and Coordinating Minister of the Economy of Nigeria Mr. Wale Edun confirmed the updated figure on Tuesday during the plenary session at the ongoing Nigeria Economic Summit #NES 30 that had World Bank Country Director, Ndiamé Diop in attendance.
Edun was speaking to facts on government reforms, social investment and the revenue and expenditure profile of the government under Bola Ahmed Tinubu’s administration.
He said: “On interventions on social investment programs, it’s spearheaded by direct transfers to qualify 60% of the poorest population. And right now, 20 million households have been supported, and are being supported directly. And it’s going to rise. It’s 20 million people, 4 million households so far, and it’s going to rise to 15 million households who will be paid directly by the government”.
“Students are being helped. Student loans, about$239,000 are currently being processed and about 20-30% of that has already been funded.
“They are being funded. About $20,000 and a fee per month, and the fees are being paid. Likewise, consumer credit is being provided to the workers so that they can afford everything from maybe, household goods or even conversion of their cars, kits to convert their cars to cheaper, cleaner, C-engine fuel. There are a whole plethora of social investment interventions on which the funds are being spent”, Edun clarified.
In the agriculture sector value chain, the Finance Minister said a lot of intervention had happened there.
”In the agricultural sector with individuals, when it comes to small scale businesses, grants are being provided to 1 million small micro enterprises. Grants of up to 1 million totalling N 75 billion .
“For large-scale companies. For the effect of the foreign exchange adjustment, in particular, on the profit and loss, and so for them, there’s another N75 billion being disbursed, N1 billion each at 9% per annum to help them too with their coping with the cost of living, the cost of their production and operations”.
“Nigeria’s Country Director World Bank, Ndiamé Diop applauded the administration for charting a new course in the management of resources. He said Nigeria’s spending needs would be higher because more needs to spend arose.
” In a due process scenario, the situation you will be facing is that the spending needs of the population, of the country, will keep increasing. Already right now in Nigeria, the spending needs are very high. And it’s rising. People want more schools, more and better hospitals, more critical infrastructure, and all of that need resources.
“And some of them, a large number of those are public goods. So if your revenue is not increasing to address those spending needs, you will be in a very bad situation”.
” And because of some negative trends such as demographics, population growth, urbanization, and climate change, in fact, those spending needs will accelerate. So the amount of resources that you will need to address them will actually increase very significantly.
“Therefore, you have to really do something to increase your revenue so that you can address them”, said the World Bank Country Director.
He said another means of finance spending is by contracting debt, an option he said remains unhelpful.
“Another way to finance spending needs is by debt. But it’s not sustainable. And if your revenue is very low, and your debt is increasing, especially if you resort to expensive commercial debt, for example, your debt service to revenue, because the denominator, your revenue is so low, will actually increase very fast and reach a very high level. We were in this situation in Nigeria in 2022 before the signature reforms started with this government”, he said.
