World Bank Allocates Additional $215 Million to Nigeria for Social Welfare Initiatives

Nigeria has received an additional $215 million from the World Bank under the National Social Safety Net Programme-Scale Up, bringing the total disbursed amount to $530 million out of an $800 million facility.

This funding aims to support conditional cash transfers to the country’s most vulnerable citizens, mitigating the effects of recent economic reforms, including the removal of fuel subsidies. Initially, beneficiaries received N5,000 monthly, but the figure was revised to N25,000 for a three-month period under the current administration, targeting 15 million households.

Despite delays in implementation—spanning nearly 17 months—significant portions of the loan have now been disbursed. Nigeria has already incurred and paid over $6.18 million in interest on the loan, with major payments made in January and July 2024.

The delays were attributed to bureaucratic hurdles, political transitions, and corruption scandals involving the Ministry of Humanitarian Affairs. Investigations by the Economic and Financial Crimes Commission (EFCC) uncovered irregularities amounting to over N37 billion under former Minister Sadiya Umar-Farouq, and her successor, Dr. Betta Edu, was also suspended over unauthorized fund transfers.

Following these developments, President Bola Tinubu appointed Finance Minister Wale Edun to head a panel tasked with reforming the social welfare system. The government is also collaborating with the Central Bank of Nigeria and the National Identity Management Commission to enforce beneficiary registration using BVNs and NINs to enhance accountability.

The World Bank’s latest project performance review rated the programme’s progress as “moderately satisfactory,” though concerns were flagged regarding financial management, procurement, and monitoring mechanisms. The programme is scheduled to conclude by December 31, 2025, unless an extension is requested.

The broader initiative stems from an earlier $500 million National Social Safety Nets Project launched in 2016, which also encountered issues, including allegations of corruption. Recent actions by the World Bank include the debarment of companies and individuals involved in fraudulent activities related to the programme, signaling ongoing efforts to address governance lapses in social welfare distribution.