Nigeria's National Economic Council Disavows Social Register for Conditional Cash Transfer Program

Nigeria's National Economic Council (NEC) has taken a new direction regarding the implementation of its conditional cash transfer program. The council has decided to disavow the social register used by the previous administration, led by Muhammadu Buhari, citing credibility issues. The NEC is now endorsing state-level cash transfer programs that will utilize their own social registers.

The decision was made after a lengthy meeting held at the State House in Abuja, which was attended by the Vice-President, all thirty-six state Governors, a representative of the Governor of the Central Bank, and other government officials. The main priority of the meeting was to develop a strategy to provide relief for the poor in light of the removal of fuel subsidies.

Governor of Anambra State, Prof. Charles Soludo, confirmed the resolution to reporters after the meeting. "We need to face the problem of the fact that we don't have a credible register," he said, shedding light on one of the primary reasons for disavowing the social register.

As part of the new approach, the NEC has also introduced a six-month cash reward system for public servants. This move aims to recognize and appreciate the efforts of those working in the public sector, especially during these challenging times of economic hardship.

In addition to the changes in the cash transfer program, the NEC has agreed to offer single-digit interest loans to Micro, Small, and Medium Enterprises (MSMEs). This measure is intended to support the growth and development of these businesses, which play a crucial role in the Nigerian economy.

Furthermore, the NEC has decided to expedite outstanding payments for public servants and pensioners as a way to alleviate the current economic hardship faced by many individuals and families.

The previous administration, with the support of the World Bank, had established the National Social Safety Nets Project (NASSP) in 2016. This project aimed to create a National Social Register, collecting data from poor and vulnerable households for cash transfers.

Since its inception, over 61 million vulnerable individuals and about 15 million households have been registered across the 36 states and the Federal Capital Territory (FCT). However, recent credibility issues with the register have led the NEC to pursue state-level registers instead.

Recently, the Federal government secured an $800 million World Bank facility to offer conditional cash transfers to the nation's most vulnerable households following the removal of the fuel subsidy. Initially, the plan was to provide N8000 monthly to households, but the President has since announced a review of the policy.

The NEC's decision to disavow the social register and explore state-level registers reflects a commitment to addressing the credibility issues and ensuring that the cash transfer program reaches those in need effectively. With the introduction of the cash reward system for public servants and the offer of single-digit interest loans, the NEC aims to provide further support for both individuals and businesses, ultimately contributing to the alleviation of the country's current economic challenges.

Source of content: OOO News 2023-07-24 News

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