Abuja — In a significant move to alleviate the suffering of vulnerable citizens, the Federal Government announced the reinstatement of a revamped social investment programme on Tuesday. The scheme, aimed at providing direct payments to 75 million Nigerians across 50 million households, marks President Bola Tinubu’s first anniversary in office.
The overhaul of the previously suspended programme was revealed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a ministerial sectoral briefing. Edun emphasized that the new cash transfer programme is designed to address and mitigate fraud, a critical issue in the previous system.
Back in January, President Tinubu had suspended all programmes under the National Social Investment Programme Agency (NSIPA) for six weeks, initiating a probe into alleged mismanagement. This suspension also saw the removal of Betta Edu from her role as the Minister of Humanitarian Affairs and Poverty Alleviation.
Key programmes affected by the suspension included N-Power, the conditional cash transfer scheme, the government enterprise and empowerment programme, and the home-grown school feeding initiative. The House of Representatives later urged the federal government to resume these social initiatives on March 13.
To spearhead the reform, Tinubu established a Special Presidential Panel led by Edun, tasked with conducting a thorough review and audit of the financial frameworks and policy guidelines of these programmes. The revamped initiative aims to deliver much-needed support to impoverished Nigerians.
Edun highlighted the administration’s broader macroeconomic reforms intended to stabilize the Nigerian economy, which have included subsidy and foreign exchange market reforms. Despite the initial rise in costs for individuals and businesses due to these changes, the government remains committed to counterbalancing these effects through social interventions.
“The government has restarted the social investment program, providing direct payments to 75 million Nigerians in 50 million households,” Edun stated. Additionally, he noted improvements in access to credit, with N1 billion allocated to consumer credit and grants of 50,000 Naira being given to 1 million nano industries.
Addressing Food Inflation
The latest data from the National Bureau of Statistics shows Nigeria’s inflation rate at 33.69% in April 2024, driven primarily by food inflation, which stands at 40.53%. The removal of petrol subsidies has partly fueled this increase, causing widespread concern among Nigerians.
Edun acknowledged the global issue of food security, stressing the importance of agriculture in combating inflation and stimulating economic growth. He mentioned that the Ministry of Finance has provided N200 billion for an agricultural intervention program, part of a broader strategy to enhance food security and support economic stability.
The government has also initiated direct payments to contractors, suppliers, and vendors to curb corruption and ensure prudent expenditure of national resources. An Economic Emergency Plan, set to be implemented over the next six months, aims to stabilize the economy and foster growth.
“Our economic reforms have improved Nigeria’s international credit rating, with Moody’s and Fitch rating agencies upgrading Nigeria’s outlook to positive,” Edun added. This improvement is expected to attract investments and enhance the country’s economic prospects.
Infrastructure and Debt Management
Edun emphasized the government’s commitment to infrastructure development, which is crucial for economic growth and job creation. A fund has been established to support housing construction and provide low-interest mortgages for Nigerians.
The finance minister assured that Nigeria is now in a strong position to meet its debt obligations. The implementation of macroeconomic reforms and the restart of the social investment program have significantly improved the country’s revenue.
“We are now able to pay our debts both domestically and internationally without strain,” Edun said. The government’s efforts to attract cheap funding for state and community-level projects have also contributed to the improved economic outlook.
Conclusion
As President Tinubu marks his first year in office, the reinstated and revamped social investment programme aims to provide much-needed relief to millions of Nigerians. With a focus on addressing food security, improving access to credit, and ensuring prudent financial management, the government is taking significant steps to stabilize the economy and support the nation’s most vulnerable populations.
