The Federal Government of Nigeria has announced a groundbreaking initiative aimed at alleviating the suffering of the nation’s poorest citizens. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed on Tuesday, October 15, that the government plans to transfer cash to 20 million poor Nigerians. This initiative is part of several social intervention programs designed to impact 60% of Nigeria’s poorest population.
Edun made this announcement during his address at the 30th Nigeria Economic Summit, where he explained that the country’s revenue for the first half of 2024 had more than doubled to N9.1 trillion, compared to N4.06 trillion in the same period of 2023. The substantial increase in revenue is being directed towards various social programs, with a focus on reducing inflation, creating jobs, and stimulating growth in key sectors such as agriculture, manufacturing, oil, and housing.
The initiative will see 4 million households—representing 20 million individuals—receiving direct financial support from the government, with plans to extend this to 15 million households. Edun highlighted agriculture as a critical sector for reducing inflation and improving the availability and affordability of food. The government is also focusing on the oil sector, which remains Nigeria’s primary source of foreign exchange.
To support small and micro enterprises in the agricultural sector, the government is investing N75 billion in grants and loans. Larger companies will also receive N75 billion in support, with loans offered at a 9% interest rate to help mitigate rising operational costs, especially following foreign exchange adjustments.
In collaboration with international partners, including the World Bank, these reforms aim to stabilize Nigeria’s fiscal position. The World Bank Country Director for Nigeria, Ndiamé Diop, acknowledged the country’s progress, pointing to improvements in the revenue-to-GDP ratio and stressing the importance of these reforms to ensure sustainable economic growth.
This initiative marks a significant step towards addressing the economic challenges faced by Nigeria’s poorest citizens and demonstrates the government’s commitment to fostering an inclusive and sustainable economic environment.
