The World Bank has commenced payment of the $800 million earmarked for the National Social Safety Net Program—Scale Up.
Documents obtained by Chronicle NG on Wednesday show that the bank has disbursed about $299.99 million to Nigeria under the National Social Safety Net Programme-Scale Up approved by the World Bank on December 16, 2021.
This means that about 37.5 percent of the entire loan has been disbursed, with a pending balance of about $442.88 million.
The $800 million social safety net programme is a conditional cash transfer scheduled to be implemented by the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.
It is in the plan of the Federal Government to run a monthly cash transfer programme for vulnerable Nigerians at the bottom of the social pyramid, who have been hit hard by recent policies, such as the fuel subsidy removal.
President Bola Tinubu officially launched the conditional cash transfer programme in October 2023, targeted at 15 million households nationwide and billed to receive N75, 000 within three months.
Information obtained from the document revealed the Federal Government is currently seeking the services of a consulting firm to help with the upgrade of the system for the cash transfer programme.
The document partly read, “The Federal Republic of Nigeria has received financing from the World Bank towards 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 towards 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 advertisement date.”
This upgrade is necessary as the National Economic Council decided earlier not to use the social register from the previous administration of Muhammadu Buhari for running the conditional cash transfer programme due to credibility issues.
The financing agreement document for the National Social Safety Net Program-Scale Up between the Federal Republic of Nigeria and the International Development Association of the World Bank seen by Chronicle NG revealed that 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 document, the Federal Government’s $800 million loan from the bank carries a maximum commitment charge rate of half a percent per year on the unwithdrawn financing balance and a service charge of three-fourths of one percent per year on the withdrawn credit balance.
It also disclosed that the interest charge is one and a quarter percent per year on the withdrawn credit balance.
