- The World Bank has confirmed the disbursement of $299.99 million to the Nigerian government
- The bank said in a statement that the money is to be used for poverty alleviation by the Humanitarian Affairs Ministry
- The funds would be disbursed to poor and vulnerable Nigerian households, with each getting N25,000 monthly for three months
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The World Bank said it had released about $299.99 million of the $800 million loan requested by Nigeria to the federal government from the approved $800 million allotted for the National Social Safety Net Programme-Scale Up.
The Washington-based financial institution revealed that with 37.5% of the loan disbursed, there is a pending balance of about $442.88 million.
The fund would be disbursed to the Nigerian households
The $800 million initiative to be implemented by the Ministry of Humanitarian Affairs and Poverty Alleviation involves a monthly cash transfer for the poor and vulnerable Nigerians hit hard by petrol subsidy removal and other economic policies.
The initiative would support 15 million households in Nigeria, with each getting N75,000 in three months.
A statement from the World Bank said the Nigerian Government has received the amount for the cost of the National Transfer Office under the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.
The World Bank said:
“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,”
According to reports, the plan to upgrade was considered necessary as the National Economic Council (NEC) decided to refrain from using the social register from the previous government for the conditional cash transfer over credibility issues.
Per the World Bank, the repayment would be made in installments, with the first payment scheduled for January 15, 2027, and the final payment due on July 15, 2051.
The banks stated that the interest rate was set at one and a quarter percent annually on the withdrawn credit balance.
A percentage of the principal loan amount and other charges would increase over time.
The final payment would be 1.65% of the principal amount, while the final payment would grow to about 3.40%.
Full payment to be made in 25 years
Legit.ng reported the federal government recently secured an $800 million loan from the World Bank to provide palliatives for over 50 million Nigerians after the removal of fuel subsidy.
The money will be shared with vulnerable persons captured in its National Social Safety Net Programme. While the move looked generous, a finance document seen by Legit.ng reveals that it will take Nigeria 25 years to complete the full repayment.
The document also showed that the financing agreement was a concessional finance and was signed on August 16, 2022, by the Nigerian Finance Minister and the World Bank Country Director for Nigeria, Shubham Chaudhuri.
"You've revenue problem": Despite N87 trillion debt stock, IMF says Nigeria not in debt distress
Legit.ng reported that despite Nigeria's debilitating N87 trillion debt profile, the International Monetary Fund (IMF) said Africa's largest economy was not in debt distress.
The IMF said this on Friday, October 13, 2023, at the ongoing IMF/World Bank Conference in Marrakesh, Morocco.
According to the Debt Management Office (DMO), Nigeria's public debt hit N87 trillion in June 2023 and is estimated to cross 37% of GDP by the end of the year.
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