In a significant move to alleviate the hardships faced by the nation’s poorest, the federal government has announced plans to provide cash transfers to 20 million Nigerians. This initiative was unveiled by Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, on October 15.
During his address at the 30th Nigeria Economic Summit, Edun explained that the government’s substantial revenue increase for the 2024 fiscal year will be directed towards various social intervention programs aimed at impacting 60% of Nigeria’s poorest population. “This initiative,” he stated, “will help to reduce inflation, create jobs, and stimulate growth in key sectors such as agriculture, manufacturing, oil, and housing.”
Edun highlighted the impressive growth in government revenue, noting that for the first half of 2024, revenue more than doubled to N9.1 trillion, compared to N4.06 trillion in the same period of 2023. He revealed that 4 million households—equivalent to 20 million individuals—are currently receiving direct financial support, with plans to extend this assistance to 15 million households.
The Minister emphasized the critical role of agriculture in combating inflation and enhancing food availability and affordability. He also noted that the government is focusing on the oil sector, which remains Nigeria’s primary source of foreign exchange.
In addition, the government is set to invest N75 billion in grants and loans for small and micro enterprises in the agricultural sector. Larger companies will also receive N75 billion in support, with loans offered at a 9% interest rate to help mitigate rising operational costs, particularly in light of recent foreign exchange adjustments.
“In collaboration with international partners, including the World Bank, these reforms aim to stabilize Nigeria’s fiscal position,” Edun added. The World Bank Country Director for Nigeria, Ndiamé Diop, acknowledged the country’s progress, pointing to improvements in the revenue-to-GDP ratio and emphasizing the importance of these reforms for sustainable economic growth.
As the government moves forward with these initiatives, it aims to create a more resilient economy and provide much-needed support to its most vulnerable citizens.