The Nigerian Federal Government has secured $800 million in funding from the World Bank for post-petroleum subsidy palliatives in preparation for the upcoming removal of fuel subsidies. The Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, announced the news to State House correspondents following a Federal Executive Council meeting presided over by President Muhammadu Buhari at the Presidential Villa.
The $800 million represents the initial tranche of palliatives, to be disbursed through cash transfers to roughly 50 million of Nigeria’s most vulnerable citizens. The funds will be given to those in the most vulnerable category of society who are registered in a national social register.
As per the Minister, “there’s a provision that says that 18 months after the effectiveness of the PIA that all petroleum products must be deregulated, that 18 months takes us to June 2023. We’re on course, we’re having different stakeholder engagements, we’ve secured some funding from the World Bank, that is the first tranche of palliatives that will enable us give cash transfers to the most vulnerable in our society that have now been registered in a national social register.”
The national social register now contains the names of 10 million households, equivalent to roughly 50 million people. The Federal Government is also seeking additional resources to do more than just provide cash transfers, as there are many other tasks beyond just giving money that need to be addressed. For example, labor unions may require mass transit for their members, which is also a medium-term implementation.
The $800 million was provided to scale up the National Social Investment Programme by the World Bank, and it is available for immediate disbursement. The incoming administration’s transition committee is currently engaged in various discussions on different levels, including those regarding the removal of fuel subsidies.
Despite the impending exit of fuel subsidies, the Federal Government is committed to cushioning the impact on the most vulnerable in society through these palliative measures
