The FG has requested an 18-month extension for the $800 millions World Bank palliative loan scheme as the country battles against rising inflation and other economic challenges.
According to a document on the project from the Bank, said that the government had asked to extend the closing date of the project from June 30 this year to December 31, 2025.
The aim is to realign the project timelines and enhance the efficacy of the National Social Safety Net Program-Scale Up (NASSP-SU).
“This paper seeks approval from the Country Director for a Level II restructuring of the National Social Safety Net Program Scale-Up project (NASSP-SU, P176935, Credit No. 7019-NG), an US$800 million Investment Project Financing (IPF).
“The restructuring will extend the project closing date by 18 months from June 30, 2024, to December 31, 2025. The benefit size and duration of the cash transfers under component 1 will also be changed,” the document said.
It contained additional information that the government sought to change the chairmanship of the project’s national steering committee from the Minister of Humanitarian Affairs and Poverty Alleviation to the Minister of Finance.
The NASSP-SU project, initiated to provide shock-responsive safety net support to the country’s poor and vulnerable, was approved on December 16, 2021, and became effective on January 30, 2023.
The Federal Government planned to use the scheme to run a monthly cash transfer program for poor and vulnerable Nigerians, badly impacted by fuel subsidy removal and other President Bola Tinubu-led administration reforms.
The cash transfer programme has suffered mistrust, following a probe of alleged misconduct by the Ministry of Humanitarian Affairs and Poverty Alleviation in management of the scheme.
Part of the mistrust had led to the suspension of the former Ministry of Humanitarian Affairs and Poverty Alleviation, Betta Edu.
