The World Bank has initiated the payment of the approved $800 million for Nigeria’s National Social Safety Net Program-Scale Up. According to investigative report, the World Bank has disbursed approximately $299.99 million under the National Social Safety Net Programme-Scale Up, as approved on December 16, 2021.
Documents from the World Bank confirm the recent disbursement, indicating that about 37.5 percent of the total loan has been disbursed, leaving a pending balance of approximately $442.88 million.
The document partly read,
“The Federal Republic of Nigeria has received financing from the World Bank toward the cost of the National Cash Transfer Office under the Federal Ministry of Humanitarian Affairs & Poverty Alleviation and implementing agency of the Client and intends to apply part of the proceeds toward payments under the contract for Upgrade of MIS for NASSP-SU.”
“The consulting services (“the Upgrade of MIS for NASSP-SU”) include carrying out the development, implementation, deployment, and maintenance of a user-friendly, interactive, web-based MIS System to support the activities of NASSP – -SU of the Federal Republic of Nigeria for effective and efficient delivery of Programme benefits to the Poor and Vulnerable. For the estimated level of effort (professional staff months) as contained in the TOR, for an implementation period of 120 days plus warranty and after-sales service; the expected start date of assignment, should be in the next three months from the advert date.”
The $800 million social safety net program involves a conditional cash transfer and is set to be implemented by the Federal Ministry of Humanitarian Affairs & Poverty Alleviation. The Federal Government aims to conduct a monthly cash transfer program for poor and vulnerable Nigerians affected by recent policies, including the fuel subsidy removal.
In October 2023, President Bola Tinubu officially launched the promised conditional cash transfer program, targeting 15 million households nationwide set to receive N75,000 within three months.
The Federal Government is currently in the process of engaging a consulting firm to assist in upgrading the system for the cash transfer program. The upgrade is deemed necessary as the National Economic Council decided not to use the social register from the previous administration, citing credibility concerns.
The financing agreement document outlines the repayment terms for the $800 million loan, with installment payments spanning from January 15, 2027, to July 15, 2051. The agreement specifies commitment charges, service charges, and interest charges on the loan, with the repayment structure indicating increasing percentages over time.
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While the first payment is set at 1.65 percent of the principal amount, the last payment will be 3.40 percent. The funds are designated for the effective and efficient delivery of program benefits to the poor and vulnerable population, addressing economic challenges and mitigating the impact of recent policy changes.
