The World Bank has initiated the disbursement of the approved $800 million for the National Social Safety Net Program-Scale Up in Nigeria. The bank has already disbursed approximately $299.99 million, representing about 37.5% of the total loan amount. The remaining balance is approximately $442.88 million.
The National Social Safety Net Program-Scale Up is a conditional cash transfer initiative designed to provide monthly financial assistance to poor and vulnerable Nigerians adversely affected by recent policies, including the removal of the fuel subsidy.
President Bola Tinubu officially launched the conditional cash transfer program in October 2023, targeting 15 million households nationwide to receive N75,000 within three months.
The Federal Government is actively seeking the services of a consulting firm to upgrade the Management Information System (MIS) for the cash transfer program. This upgrade is deemed necessary, as the National Economic Council decided against using the social register from the previous administration due to credibility concerns.
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The financing agreement between the Federal Republic of Nigeria and the International Development Association of the World Bank outlines the repayment terms. Repayments will be made in installments, with the first payment due on January 15, 2027, and the final payment due on July 15, 2051.
The loan attracts various charges, including a maximum commitment charge rate of one-half of one percent per annum on the Unwithdrawn Financing Balance, a service charge of three-fourths of one percent per annum on the withdrawn credit balance, and an interest charge of one and a quarter percent per annum on the withdrawn credit balance.
Additionally, a percentage of the principal amount will be paid alongside other charges, with the first payment at 1.65% of the principal amount and the last payment at 3.40%. The funds are intended to support the effective and efficient delivery of program benefits to the poor and vulnerable in Nigeria.
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