An announcement made by the Federal Government on Tuesday revealed the reinstatement of the suspended social investment programme, aimed at providing direct payments to 75 million Nigerians in 50 million households. This initiative is designed to alleviate the suffering of citizens, especially vulnerable groups.
The cash transfer programme underwent an overhaul to address issues of fraud within the system.
During a ministerial sectoral briefing marking the first year of President Bola Tinubu’s administration, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this disclosure in Abuja.
In response to alleged malfeasance in the management of the agency and the scheme, President Tinubu had suspended all programmes administered by the National Social Investment Programme Agency for six weeks starting January 12. Additionally, the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, was suspended on January 8. Her ministry oversees the operations of the NSIPA, impacting intervention programs such as N-Power, conditional cash transfers, government enterprise and empowerment programs, and the home-grown school feeding initiative.
The House of Representatives, on March 13, called for the federal government to resume the implementation of the suspended social investment initiatives.
To revamp the programme, Tinubu authorized the creation of a Special Presidential Panel, led by Edun, to conduct a thorough review and audit of the existing financial frameworks and policy guidelines of the social investment programmes.
Providing an update on the committee’s progress at the briefing, the finance minister confirmed that the government had decided to relaunch the programme to offer support to underprivileged Nigerians.
Edun stated, “I am obliged to provide an overview of the strategy, policies, and implementation of Mr. President’s reform programme… The government has reinstated the social investment program, delivering direct payments to 75 million Nigerians in 50 million households. Improvements have been made in accessing credit, with N1 billion allocated to consumer credit and grants of 50,000 Naira given to 1 million nano industries.”
Food Inflation
The April CPI report from the National Bureau of Statistics highlighted Nigeria’s 33.69% inflation rate, primarily driven by food inflation reaching 40.53% in April 2024.
The minister acknowledged concerns over the continuous rise in prices of goods and services, partially influenced by the removal of petrol subsidies.
Addressing the issue of food security affecting 30% of the world’s population, the minister emphasized the essential role of agriculture in combating global food insecurity.
He emphasized, “Food security is a global concern impacting 30% of the world’s active population, including Nigeria. Agriculture plays a pivotal role, and our success in this sector is crucial. Efforts are being intensified with the Ministry of Finance allocating N200 billion towards an intervention program.”
“Today, we met with the social investment prudential panel and development partners to discuss the President’s emergency plan for food security. This underscores our commitment to addressing food, nutrition, and security challenges, which will receive heightened focus in the upcoming weeks.”
Regarding economic reforms, the government has initiated direct payments to contractors, suppliers, and vendors engaged in government projects, aiming to enhance transparency and accountability in financial transactions.
Edun also disclosed plans to launch an Economic Emergency Plan within the next six months to stabilize the economy and propel growth.
He elaborated, “A payment system has been implemented to ensure the judicious and accountable utilization of Nigeria’s resources. The government is facilitating states in accessing affordable funding and expediting community-level projects. Nigeria’s international credit rating has improved, with Moody’s and Fitch revising Nigeria’s ratings upwards.”
“A robust and expanding economy attracts investments that drive productivity, foster employment, and diminish poverty. Nigeria is on this trajectory now.”
The finance minister assured that Nigeria now possesses sufficient resources to meet its domestic and international debt obligations without strain, a significant improvement from previous struggles to fulfill financial responsibilities due to outdated technological change procedures.
He emphasized that the government’s revenue has been revitalized and substantially increased through macroeconomic reforms and the reinstatement of the social investment program.
Implementing technological changes requires not only a skilled workforce but also political will.
The revenue of the Federal Republic of Nigeria has been significantly revamped and increased. This means that the government can now pay its debts without resorting to Ways and Means, particularly in terms of domestic debt service obligations.
As a result, the government is now in a comfortable position to service its debts and meet its financial obligations.
Edun also pointed out the improvement in Nigeria’s international credit rating, with Moody’s and Fitch upgrading Nigeria’s ratings to positive.
Combined with the settlement of a $200m shareholding with the Islamic Development Bank, this has boosted confidence and enabled Nigerians to have a stronger presence on the global stage.
The minister emphasized the importance of infrastructure in driving economic growth, creating jobs, and generating multiplier effects throughout the economy.
A fund has been established to provide long-term institutional support for housing construction and offer low-interest mortgages for average Nigerians.
He clarified that the departure of companies from Nigeria should not be blamed on the current government.
He mentioned, “Our government has inherited both assets and liabilities from the previous administration. The companies that left did not make abrupt decisions; they stayed until they could no longer remain sustainable.”
The minister highlighted the meticulous efforts in paying off all obligations, both domestic and international, due to the diligent collection and monitoring of revenue on behalf of Nigerian workers.
He also mentioned ongoing discussions regarding the implementation of the minimum wage law and the production of mass transit vehicles aimed at reducing fuel costs.