Latest Update on FG Conditional Cash Transfer Program today 22 November 2023 can be accessed below.
In a recent report, the World Bank emphasizes the pivotal role of cash transfers in preventing Nigerians from succumbing to intergenerational poverty traps amid rising inflation and economic challenges. The ‘Macro Poverty Outlook’ report warns that inflation and low economic growth could push an additional 2.8 million people into poverty by the end of 2023.
The World Bank suggests that targeted measures, including cash transfers, could alleviate short-term challenges faced by the poor and vulnerable, shielding them from the risk of falling into long-lasting poverty cycles. The report projects a peak in the share of Nigerians below the international poverty line in 2024 at 38.8%, with a gradual decline anticipated as inflation eases and economic growth improves.
Notably, approximately 37.5% of Nigerians are reported to live below the international poverty rate of $2.17 per day, while 70.4% fall below the lower middle-income poverty rate of $3.65 per day in 2023.
The World Bank expresses concerns over potential external and fiscal imbalances, citing factors such as a decline in oil production, slow non-oil revenue growth, global monetary tightening, the war in Ukraine, export bans, and climate events that could impact Nigeria’s economic stability. Regional instability, highlighted by the recent coup in Niger, is also identified as a potential threat to the country’s recovery.
Despite the challenges, the World Bank acknowledges President Bola Tinubu’s recent launch of a social safety net program, distributing N25,000 to 15 million homes for three months. Of the authorized $800 million for the National Social Safety Net Program-Scale Up, $299.99 million has already been released by the World Bank, supporting the initiative until June 30, 2024.
However, concerns arise regarding the eligibility of low-income individuals, as World Bank data reveals that less than 1% of the population possesses a National Identity Number (NIN). This could impact the effectiveness of the Federal Government’s cash transfer program, which aims to address the disproportionate impact of recent policies, including the elimination of fuel subsidies.
In light of these developments, the Federal Ministry of Humanitarian Affairs and Poverty Alleviation is tasked with executing the $800 million initiative. The article concludes by underscoring the importance of sustaining reform momentum and addressing structural constraints for inclusive growth, as outlined by the World Bank.
