The World Bank has recently disbursed $299.99 million to Nigeria as part of the approved $800 million loan for the National Social Safety Net Program-Scale Up, a source within the World Bank confirmed the information.
The disbursement represents 37.5 percent of the total loan, leaving a balance of $442.88 million. The National Social Safety Net Program-Scale Up was approved on December 16, 2021, and is scheduled to run until June 30, 2024.
The program will be implemented by the Federal Ministry of Humanitarian Affairs & Poverty Alleviation.
The loan aims to support a monthly cash transfer program for impoverished and vulnerable Nigerians who have been adversely affected by recent policies, including the removal of fuel subsidies.
In October 2023, President Bola Tinubu formally/ launched/ the promised conditional cash transfer programme targeted at 15 million households nationwide billed to receive N75,000 within three months.
It was also learnt that 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.
Information obtained from the/ World Bank/ read, “The Federal Republic of Nigeria has received financing from the World Bank toward 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 toward 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 advert date.”
This upgrade is necessary as the National Economic Council (NEC)/ decided/ earlier not to use the social register from the previous administration of Muhammadu Buhari for running the conditional cash transfer program due to credibility issues.
The National Social Safety Net Program-Scale Up financing agreement between the Federal Republic of Nigeria and the International Development Association (IDA) of the World Bank outlines a repayment plan that involves installment payments.
The first payment is due on January 15, 2027, and the final payment is due on July 15, 2051.The loan amount of $800 million incurs a maximum commitment charge rate of 0.5 percent per annum on the Unwithdrawn Financing Balance and a service charge of 0.75 percent per annum on the withdrawn credit balance.
The interest charge is 1.25 percent per annum on the withdrawn credit balance.
Additionally, a percentage of the principal amount of the loan is expected to be paid alongside the other charges, and this percentage will increase over time. The first payment will be 1.65 percent of the principal amount, while the final payment will be 3.40 percent.