The Federal Government of Nigeria has announced a new social investment programme aimed at providing direct cash transfers to 20 million of the nation’s poorest citizens, impacting approximately 60 per cent of those in need.
The disclosure was made by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a panel session titled ‘Fiscal Reforms for a More Secure Future’ at the 30th Nigeria Economic Summit in Abuja.
Minister Edun highlighted that the programme is part of the government’s strategy to alleviate the economic challenges faced by many Nigerians due to recent reforms. These reforms, though essential, have contributed to an increased cost of living, prompting the government to implement measures to cushion the impact on vulnerable populations.
Speaking on the nation’s revenue growth, Edun emphasised the importance of focusing on domestic resource mobilisation, which has played a key role in funding social programmes. He noted that government revenues have significantly increased in the first half of the year.
“In terms of revenue, the number one place to look was inwards, domestic resource mobilisation. That’s where the government started. By the first half of this year, revenue had doubled,” Edun said. “Aggregate government revenue was more than doubled. And that was achieved by applying technology very robustly.”
He further explained that the use of technology has helped reform the civil service, allowing for more efficient compliance and revenue collection from government ministries, departments, agencies, and state-owned companies. The reforms have enabled the government to better monitor expenditure and surplus returns, thereby increasing available funds for social investment.
The social investment programme, according to Edun, is designed to provide financial support directly to the most disadvantaged households. So far, the programme has reached four million households, covering approximately 20 million people. The aim is to expand this coverage to 15 million households, benefiting a significant portion of the population.
“That is how President Tinubu’s government is spending the money which is being yielded from better oil production,” Edun stated, underlining the administration’s commitment to using increased revenues from improved oil production to support those most in need.
The initiative is expected to play a crucial role in mitigating the economic difficulties faced by millions of Nigerians, providing a financial lifeline as the country navigates the challenges of economic reforms and strives for a more secure future.
