As the Bola Tinubu government marks its first year in office, the Federal Government has announced the reinstatement of the suspended social investment program, vowing to provide direct cash payments to 75 million Nigerians in 50 million households.
The move is aimed at tackling the plight of vulnerable citizens amidst the rising cost of living, according to Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Addressing a media briefing in Abuja, Edun revealed that the cash transfer initiative has been overhauled to address past issues of fraud and mismanagement that had plagued the program under the previous administration.
“The government has restarted the social investment program, providing direct payments to 75 million Nigerians in 50 million households. Access to credit has also been improved, with N1bn allocated to consumer credit and grants of 50,000 Naira being given to 1 million nano industries,” Edun stated.
The cash transfer scheme was among several social intervention programs suspended by President Tinubu shortly after assuming office, as part of a probe into alleged malfeasance in the management of the National Social Investment Programme Agency.
The finance minister further revealed that the government has initiated direct payments to contractors, suppliers, and vendors engaged by the state in a bid to curb corruption in public expenditure.
Addressing the persistent challenge of food inflation, which hit 40.53% in April 2024, Edun underscored the critical role of the agricultural sector in addressing global food insecurity, with the government allocating N200bn towards an intervention program.
The minister also disclosed plans for an Economic Emergency Plan to be rolled out in the next six months, aimed at stabilizing the economy and setting the country on a trajectory of growth.
“The government is committed to counterbalancing the negative effects of economic reforms with interventions across the social spectrum. Infrastructure is key to growing the economy, building employment, and creating multiplier effects throughout the economy,” Edun added.
New investment incentives have been introduced, particularly in the oil and gas sector, that are expected to unlock $7 billion in investment that was previously sitting on the sidelines. This is part of the government’s efforts to attract investment, boost productivity, and create jobs.
The finance minister announced that Nigeria now has sufficient resources to pay its debts, both domestically and internationally, without strain. This is a significant improvement from the previous situation where the government struggled to meet its financial obligations.
The government’s revenue has been “totally revamped, rejuvenated, and increased substantially” due to the implementation of macroeconomic reforms and the restart of social investment programs. This has put the government in a comfortable position to service its debts and meet its financial obligations.
Nigeria’s international credit rating has also improved, with Moody’s and Fitch increasing and improving Nigeria’s ratings to positive. This, combined with the paying up of a $200 million shareholding with the Islamic Development Bank, has built confidence and allowed Nigerians to take their rightful place at the table.
The government is focused on infrastructure development, housing construction, and low-interest mortgages to support economic growth, employment, and create multiplier effects throughout the economy.
The finance minister addressed the issue of companies that have exited Nigeria, stating that the current government inherited the assets and liabilities of the previous administration, and that the companies did not make their decisions overnight.
The government is also working on implementing the minimum wage law and ensuring that it is applied in both the private and public sectors.
Overall, the finance minister’s statements suggest that Nigeria’s economic situation has improved significantly, with the government focusing on revenue generation, debt management, investment attraction, infrastructure development, and social welfare programs to drive economic growth and development.
