President Bola Tinubu has requested the approval of the Senate for an additional $800 million loan.
This loan will be used to expand the coverage of shock-responsive safety net supports for all vulnerable Nigerians, helping them cope with their basic needs.
If the loan is approved, 12 million Nigerians will receive N8000 monthly for a period of six months. These funds will be transferred directly to beneficiaries’ accounts and mobile wallets through digital transfers.
It is worth noting that President Muhammadu Buhari had previously sent a similar letter to the National Assembly, but no legislative action was taken due to its late submission.
In his letter to the Senate, President Tinubu stated that the Federal Government of Nigeria aims to support 12 million poor and low-income households with a monthly sum of N8000 for six months. This initiative is expected to positively impact approximately 60 million individuals.
The letter reads: “Request for approval of additional financing of the national social safety net programme set up by the National Assembly.
“It is with pleasure that I refer the above matter to you, “please note that the Federal Executive Council led by President Muhammadu Buhari approved an additional loan facility to the tune of $800 million to be secured from the World Bank for the National Social Safety Net programme. Copy of FEC’s extract attached.
“You may also wish to note that the purpose of the facility is to expand coverage of shock responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with basic needs.
“You may further wish to note that under the conditional cash transfer window of the programme, the federal government of Nigeria will transfer the sum of N8,000 per month to 12 million poor and low income households for a period of six months, with a multiplier effect on about 60 million individuals.
“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.
“It is expected that the programme, will stimulate economic activities in the informal sector, and improve nutrition, health, education, and human capital development of beneficiaries’ households.
“Given the above, I wish to invite the Senate to kindly grant approval for the additional loan facility of $800 million to be secured from World Bank for the National Social Safety Net Programme.
“While hoping that this submission will receive expeditious consideration by the Senate, please accept the assurances of my highest regards.”