Federal Government Seeks 18-Month Continuation Of $800m World Bank Palliative Plan

Federal Government Seeks 18-Month Continuation Of $800m World Bank Palliative Plan....KINDLY READ THE FULL STORY HERE▶

The Nigerian government has formally requested an 18-month extension on the closing date of the World Bank’s $800 million palliative loan aimed at bolstering its social safety net initiatives. This appeal follows the country’s efforts to combat escalating inflation and economic difficulties.

According to a restructuring document obtained from the World Bank, the government seeks to extend the project’s closing date from June 30, 2024, to December 31, 2025. The report highlights that approximately three million impoverished and vulnerable households have already benefited from the $800 million loan.

The loan, disbursed by the apex bank, was intended to mitigate the impact of recent governmental policies, including the removal of fuel subsidies. Of the beneficiaries, 700,000 households reside in rural areas, while 2.5 million are in urban settings.

The extension aims to realign project timelines and enhance the effectiveness of the National Social Safety Net Programme-Scale Up. The restructuring document further details that the initiative has covered 1,652 urban wards through a targeted system developed under the project.

Additionally, the document outlines plans for a digital payment delivery mechanism designed to streamline transfers directly into beneficiaries’ accounts or wallets. This system is being integrated with the National Identification Number (NIN) to strengthen targeting accuracy.

The National Social Safety Net Programme-Scale Up (NASSP-SU), launched to provide responsive support to Nigeria’s impoverished and vulnerable populations, was approved on December 16, 2021, and commenced on January 30, 2023.

The government’s request for extension cites the ongoing struggle with high inflation, which reached 33.2% in early 2024, exacerbated by policy shifts such as the removal of fuel subsidies and currency depreciation.

In a bid to restart the cash transfer programme, the government has proposed transferring the chairmanship of the project’s national steering committee from the Minister of Humanitarian Affairs and Poverty Alleviation to the Minister of Finance. These efforts are part of broader restructuring measures aimed at revitalizing the initiative.

Overall, despite initial delays, the project remains integral to the government’s ambitious plan to offer temporary cash support to populations affected by economic turbulence, particularly in the aftermath of recent reforms.

The restructuring proposal assures that all financial and audit requirements are up to date, with ongoing efforts to improve procurement practices and contract management within the Project Implementation Unit (PIU).