Federal Government Announces Cash Assistance For 20 Million Vulnerable Families

Federal Government Announces Cash Assistance For 20 Million Vulnerable FamiliesWale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has announced that the revenue growth recorded in the 2024 fiscal year will be strategically directed toward various social intervention programs designed to enhance the living standards of citizens and address urgent societal challenges.....KINDLY READ THE FULL STORY HERE▶

The minister stated that the social investment initiative aims to assist 60 percent of the poorest population, reaching approximately 20 million individuals. He outlined a comprehensive economic reform agenda focused on reducing inflation, creating jobs, and fostering growth in key sectors.

In his address on October 1, 2024, President Bola Tinubu revealed that government revenue for the first half of 2024 exceeded N9.1 trillion, more than double the N4.06 trillion generated in the same period the previous year.

Speaking at the 30th Nigeria Economic Summit in Abuja, Edun explained that the increased revenue primarily finances social programs intended to alleviate the impacts of necessary but challenging reforms that have affected living costs. He emphasized the government’s strategy of domestic resource mobilization, highlighting that revenue had more than doubled by leveraging technology to enhance compliance across various government entities.

Edun reported that the social investment program is currently providing direct transfers to 4 million households, with plans to expand this to 15 million households. He attributed this initiative to improved oil production and government spending efficiency.

The minister also underscored the government’s focus on key sectors such as agriculture, manufacturing, oil, and housing as essential drivers of economic growth. He pointed out that enhancing food production is a priority to help lower inflation and reduce living costs for Nigerians.

In addition, Edun discussed reforms in the oil and gas sector, which are vital for generating foreign exchange. He noted that recent reforms have attracted substantial investments, including an additional $10 million from ExxonMobil, reflecting a positive outlook for continued foreign and local investment.

Further initiatives include a student loan program and consumer credit options for workers to facilitate the purchase of household goods or conversion of vehicles to cleaner fuels. The government is also providing grants and loans totaling up to N75 billion to support one million small and micro enterprises.

For larger firms, Edun mentioned that an additional N75 billion is being allocated in tranches to help them cope with production costs, especially in light of recent foreign exchange adjustments.

Edun concluded by stating that these measures, driven by improved oil production and macroeconomic reforms, are expected to save Nigeria 5 percent of its GDP.

During the summit, Ndiamé Diop, the World Bank Country Director for Nigeria, recognized the significant revenue increase and its potential to improve the country’s revenue-to-GDP ratio. He warned that without ongoing reforms, Nigeria could face a fiscal crisis, emphasizing the importance of stabilizing the fiscal position for sustainable economic growth.

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