April 24, 2024

World Bank pays out $300m palliative loans

World Bank pays out $300m palliative loans

The World Bank has disbursed $80m for the National Social Safety Net Program-Scale Up.

The World Bank has also disbursed $299.99 million to Nigeria under this program which was approved by it on December 16, 2021, as per information obtained from World Bank documents.

This recent disbursement represents about 37.5 per cent of the total amount, leaving a balance of approximately $442.88m.

The National Social Safety Net Programme is a cash transfer program for poor and vulnerable Nigerians, which the Federal Ministry of Humanitarian Affairs & Poverty Alleviation plans to implement using this loan. The program aims to provide monthly cash transfers to those who have been affected by recent policies, such as the removal of fuel subsidies.

In October 2023, President Bola Tinubu launched the conditional cash transfer program targeted at 15 million households, with each household slated to receive N75,000 within three months. The Federal Government also seeks the services of a consulting firm to upgrade the system for the cash transfer program.

The financing agreement document between the Federal Republic of Nigeria and the International Development Association of the World Bank states that the repayment of the loan will be made in instalments, with the first payment due on January 15, 2027, and the last payment due on July 15, 2051.

The loan attracts various charges, including commitment charges, service charges, and interest charges, as well as a percentage of the principal amount of the loan, which will increase over time – from 1.65 per cent for the first payment to 3.40 per cent for the last payment.

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