On Tuesday, the Federal Government announced the reinstatement of the suspended social investment programme, which aims to provide direct payments to 75 million Nigerians in 50 million households to alleviate the suffering of citizens, particularly vulnerable groups. The programme has been overhauled to address fraud issues.
The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, made this announcement during a ministerial sectoral briefing in Abuja, marking the first year of President Bola Tinubu’s administration.
On January 12, President Tinubu suspended all programmes administered by the National Social Investment Programme Agency (NSIPA) for six weeks as part of a probe into alleged mismanagement. Betta Edu, the Minister of Humanitarian Affairs and Poverty Alleviation, who supervised NSIPA, was also suspended on January 8. The suspension affected several intervention programmes, including N-Power, the conditional cash transfer scheme, the government enterprise and empowerment programme, and the home-grown school feeding initiative.
Following the suspension, the House of Representatives on March 13 urged the federal government to resume the social investment initiatives. To revamp the programme, President Tinubu approved the establishment of a Special Presidential Panel led by Edun to review and audit the financial frameworks and policy guidelines of the social investment programmes.
During the briefing, Edun provided an update on the committee’s actions, stating that the government decided to restart the programme to provide relief for poor Nigerians. “Immediately upon assuming office, Mr President launched macroeconomic reforms to restore stability to the Nigerian economy, including subsidy reforms and foreign exchange market reforms. These reforms caused a spike in costs for individuals and businesses, but Mr President is committed to counterbalancing the negative effects with interventions across the social spectrum,” Edun said.
He added, “The government has restarted the social investment programme, providing direct payments to 75 million Nigerians in 50 million households. Access to credit has been improved, with N1 billion allocated to consumer credit and grants of 50,000 Naira being given to 1 million nano industries.”
Edun also addressed the issue of food inflation, which the National Bureau of Statistics reported as standing at 40.53% in April 2024, driving the overall inflation rate to 33.69%. He emphasized the critical role of agriculture in addressing global food insecurity and mentioned that N200 billion had been provided by the Ministry of Finance for an intervention program.
“Food security is a worldwide issue, affecting 30% of the world’s active population, and Nigeria is no exception. Efforts are being redoubled, with N200 billion provided by the Ministry of Finance towards an intervention program. Just today, we met with the social investment prudential panel and development partners to discuss the President’s emergency plan for food security,” Edun explained.
The finance minister also revealed that the federal government had initiated direct payments to contractors, suppliers, and vendors engaged by the government to curb corruption in business dealings. This measure aims to ensure the prudent and accountable expenditure of the nation’s wealth.
Edun announced that the government is set to roll out an Economic Emergency Plan within the next six months to stabilize the economy and promote growth. “A system of payment has been implemented to ensure that Nigeria’s money is spent wisely and accountably. The government has played a role in helping states attract cheap funding and process projects at the community level. Nigeria’s international credit rating has improved, with Moody’s and Fitch increasing and improving Nigeria’s rates to positive,” he said.
He also highlighted the importance of infrastructure in economic growth, employment creation, and generating multiplier effects throughout the economy. A fund has been established to provide institutional long-term support for housing construction and low-interest mortgages for average Nigerians.
Regarding the economic reforms, Edun stated that Nigeria now has sufficient resources to pay its debts, both domestically and internationally, without strain. He emphasized that the government has revamped and substantially increased its revenue due to the implementation of macroeconomic reforms and the restart of the social investment program.
“We met a situation where the government did not have enough money. However, we are now in a situation where the revenue of the Federal Republic of Nigeria has been revamped, related, and increased substantially. This means that the government can now pay its way. The government is paying its debt service without resorting to Ways and Means,” Edun explained.
He also addressed the improvement in Nigeria’s international credit rating and the paying up of a $200 million shareholding with the Islamic Development Bank, which has boosted confidence in Nigeria’s financial stability.
Edun concluded by discussing the government’s commitment to counterbalancing the negative effects of economic reforms with social interventions and highlighted the importance of infrastructure in growing the economy and creating employment opportunities. He also mentioned ongoing efforts to pivot to Compressed Natural Gas (CNG) and solar-based or electric vehicles to reduce fuel costs and improve efficiency.
