The Nigerian government is gearing up to broaden the reach of its cash assistance program, with the Finance Minister, Mr. Wale Edun, revealing plans for an imminent relaunch. Presently aiding 3 million households, the initiative is set to extend its benefits to an additional 12 million families, aiming to soften the blow of escalating living costs.
In Uyo, Edun disclosed, “The presidential panel on the social investment programmes has prepared to approach Mr. President with an internal recommendation to swiftly reinstate the direct payments to the poorest and most vulnerable… to alleviate hardship.”
Highlighting the increased need for support, he added, “Given the economic strain, around 12 million more households are poised to gain from these payments.”
The government’s strategy involves direct financial aid to those hardest hit by economic pressures, intending to empower them to address their most pressing needs and mitigate poverty.
Edun emphasized the role of technology in ensuring efficient and transparent transactions, stating, “We are committed to employing technology to facilitate seamless payments… thereby eliminating delays tied to manual processing.”
In response to soaring food prices, the administration has initiated measures to enhance food availability and affordability, including the release of 60,000 metric tonnes of food grains into the market.
Defending the cash transfer scheme’s revival, Edun argued, “History and evidence have shown that direct financial assistance significantly reduces poverty by enabling recipients to allocate funds where they are most needed.”
This move is part of President Bola Tinubu’s wider economic agenda aimed at stimulating growth, generating employment, and uplifting millions from poverty.
Addressing inflation concerns linked to historical government borrowing, known as “Ways and Means,” Edun acknowledged the necessity of addressing this issue through financial innovation and revenue generation initiatives.
The collaboration between the Ministry of Finance and the Central Bank of Nigeria (CBN) is crucial in managing inflation and stabilizing the national currency. Edun affirmed, “Together with the CBN, we are utilizing various instruments to stabilize interest rates and manage foreign exchange rates… It’s a battle we are determined to win.”