World Bank disburses $299.99 mn of $800 mn palliative loan to Nigeria
The World Bank has released $299.99 million to Nigeria from the approved $800 million allocated for the National Social Safety Net Program-Scale Up, as per information sourced from the World Bank.
The financial institution disclosed that, with roughly 37.5% of the entire loan disbursed, there remains a pending balance of around $442.88 million.
The $800 million programme, to be implemented by the Federal Ministry of Humanitarian Affairs & Poverty Alleviation involves a monthly cash transfer programme for poor and vulnerable Nigerians, who have been hit hard by recent policies, such as the fuel subsidy removal.
According to the details acquired from the World Bank:
“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 to carry 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,” the statement read.
The decision to upgrade is deemed necessary as the National Economic Council (NEC) earlier resolved not to utilize the social register from the previous administration of Muhammadu Buhari for the conditional cash transfer program, citing credibility concerns.
According to the World Bank, the repayment will be structured in instalments, with the initial payment scheduled for January 15, 2027, and the final payment due on July 15, 2051.
The bank also revealed that the interest rate is set at one and a quarter per cent per annum on the withdrawn credit balance. A percentage of the principal loan amount, along with other charges, will progressively increase over time. The initial payment is slated to be 1.65% of the principal amount, while the final payment will escalate to 3.40%.