Nigerian Government Secures $800 Million World Bank Facility for Palliatives

At the end of the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari on Wednesday at the Presidential Villa, Abuja, the minister of Finance, Budget and national planning, Zainab Ahmed, disclosed that the federal government has secured $800 million from the world bank for provision of palliatives because of the removal of petroleum subsidy Set for June 2023.

According to her, the $800 million is the first portion of palliatives to be disbursed through cash transfers to about 50 million Nigerians, who belong to the most vulnerable category of the Nigerian society.

When asked about the palliatives she said :

“ when we were working on the 2023 Medium Term Expenditure Framework and the Appropriation Act, we made that provision to enable us exit fuel subsidy by June 2023.”

“We’re on course, we’re having different stakeholder engagements, we’ve secured some funding from the World Bank, that is the first tranche of palliatives that will enable us give cash transfers to the most vulnerable in our society that have now been registered in a national social register. Today that register has a list of 10 million households. 10 million households are equivalent to about 50 million Nigerians.”

“But we also have to raise more resources to enable us do more than just the cash transfers and also in our engagements with the various stakeholders, the various kinds of tasks that we have go beyond the requirement of just giving cash transfers. Labour, for example, might be looking for mass transit for its members.”

“So, there are several things that we’re still planning and working on, some we can start executing quickly, some are more medium-term implementation.”

On the 15th of march, the minister of state, budget and national planning, Clement Agba, stated there had been no conclusion reached on the how to go about lessening the possible impacts of the proposed fuel Subsidy removal on Nigerian citizens.

WHAT IMPACT IS THIS MOVE EXPECTED TO HAVE?

The $800 million World Bank facility is the latest intervention by the Nigerian government aiming to significantly lessen the burden created by the fuel subsidy. Although this initiative is not without its own challenges as corruption and inefficiencies might surface, it is worthy of note that relief will be provided for the Nigerian government, which has struggled to finance fuel subsidies due to declining oil revenues.

Overall, the government’s move to secure palliative funds is applaudable as it signifies that the government prioritizes the well-being of Nigerians. This move is set to alleviate the suffering of some Nigerians and potentially improve the overall quality of life for citizens.

The Nigerian economic situation is in shambles and they'll need to be sure of how much they need before borrowing money carelessly. Debt is real.