The $800 million authorized for the National Social Safety Net Program-Scale Up has been paid by the World Bank.
According to information obtained by Gistlover on Wednesday, the bank has given Nigeria around $299.99 million as part of the National Social Safety Net Programme-Scale Up, which was authorized by the World Bank on December 16, 2021.
The payment was confirmed and the recent disbursement was noted in documents that were retrieved from the World Bank.
This indicates that there remains a $442.88 million outstanding balance after approximately 37.5% of the total loan has been issued.
The Federal Ministry of Humanitarian Affairs & Poverty Alleviation is slated to launch the $800 million social safety net program, which is a conditional cash distribution.
The Federal Government intends to use this loan to fund a monthly cash transfer program for Nigerians who are poor and vulnerable and who have been severely impacted by recent policies like the elimination of fuel subsidies.
The anticipated conditional cash transfer program, which is aimed at 15 million households nationwide and is scheduled to receive N75,000 within three months, was formally inaugurated by President Bola Tinubu in October 2023.
The paper also stated that in order to assist with the system upgrade for the cash transfer program, the Federal Government is now looking to hire a consulting firm.
The document partly read, “The Federal Republic of Nigeria has received financing from the World Bank toward the cost of the National Cash Transfer Office under the Federal Ministry of Humanitarian Affairs & Poverty Alleviation and implementing agency of the Client and intends to apply part of the proceeds toward payments under the contract for Upgrade of MIS for NASSP-SU.”
“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. For the estimated level of effort (professional staff months) as contained in the TOR, for an implementation period of 120 days plus warranty and after-sales service; the expected start date of assignment, should be in the next three months from the advert date.”
This update is required because, due to concerns about legitimacy, the National Economic Council had opted against using the social register from Muhammadu Buhari’s previous administration to administer the conditional cash transfer program.
The repayment will be made in installments, with the first payment due on January 15, 2027, and the last payment due on July 15, 2051, according to the financing agreement document sighted by our correspondents for the National Social Safety Net Program-Scale Up between the Federal Republic of Nigeria and the International Development Association of the World Bank.
According to the document, the $800 million loan that the Federal Government obtained is subject to a maximum commitment fee rate of 0.5 percent annually on the unwithdrawn financing balance and a service charge of 0.75% annually on the withdrawn credit balance.
Additionally, it revealed that the withdrew credit balance carries an annual interest charge of 1.25%.
In addition to the other fees, a portion of the loan principal—which will rise over time is also anticipated.
The final payment will be 3.40 percent, whereas the initial payment will be 1.65 percent of the principal amount.
