Nigeria’s President Muhammadu Buhari has requested a fresh $800 million loan from the World Bank to fund the National Social Safety Net Programme.
The loan will be used to expand the coverage of shock-responsive safety net support among poor and vulnerable Nigerians.
In a letter read out by the President of the Senate, Ahmad Lawan, Buhari noted that the loan had been approved by the Federal Executive Council and urged the Senate to give it expeditious consideration. He explained that the programme was designed to assist poor and low-income households in coping with the costs of meeting basic needs.
Under the programme, the Federal Government of Nigeria will transfer N5,000 per month to 10.2 million poor and low-income households for a period of six months, with a multiplier effect on about 60 million individuals. The transfers will be made directly to beneficiaries’ accounts and mobile wallets to ensure transparency and accountability.
This loan request comes as Nigeria’s borrowing from the World Bank reached $14.34 billion as of March 31, 2023, an increase from the $13.93 billion debt recorded by the Debt Management Office as of December 31, 2022. The loan, if approved, will add to Nigeria’s debt from the World Bank in the first quarter of 2023.
The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income countries, while the International Development Association (IDA) provides concessionary loans and grants to governments of the poorest countries. The loan request will now be considered by the National Assembly.
