World Bank Begins Disbursement of $800m for National Social Safety Net Program

The World Bank has initiated the disbursement of the approved $800 million allocated for the National Social Safety Net Program-Scale Up in Nigeria.

Recent documents from the World Bank reveal that approximately $299.99 million or 37.5% has been disbursed out of $442.88 million.

The National Social Safety Net Program-Scale Up is a conditional cash transfer initiative intended to be executed by the Federal Ministry of Humanitarian Affairs & Poverty Alleviation.

The cash transfer program aims to provide monthly financial support to poor and vulnerable Nigerians, particularly those affected by recent policies like the fuel subsidy removal.

The Federal Government, led by President Bola Tinubu, launched the conditional cash transfer program in October 2023, targeting 15 million households set to receive N75,000 within three months.

To enhance the efficiency of the cash transfer program, the Federal Government is currently in the process of upgrading the Management Information System (MIS).

A consulting firm will be engaged to develop and maintain a user-friendly, web-based MIS System to facilitate the effective delivery of program benefits.

The repayment of the $800 million loan is structured in installments, with the first payment due on January 15, 2027, and the final payment scheduled for July 15, 2051.

The loan agreement specifies commitment charges, service charges, and interest rates on the withdrawn credit balance.

As the program progresses, a percentage of the principal amount will be paid, increasing over time from 1.65% to 3.40% for the first and last payments, respectively.