The World Bank has finally disbursed about $299.99 million to Nigeria out of the $800 million approved for the National Social Safety Net Program-Scale Up.
This is according to information obtained from the World Bank, with a source in the bank confirming to TheWitness that the disbursement was made recently.
According to information from the Bretton Woods institution, with about 37.5% of the entire loan disbursed, there is a pending balance of about $442.88 million.
The National Social Safety Net Programme-Scale Up was approved by the World Bank on December 16, 2021, and is expected to run till June 30, 2024.
The $800 million programme is to be implemented by the Federal Ministry of Humanitarian Affairs & Poverty Alleviation.
With this loan, the Federal Government plans to run a monthly cash transfer programme for poor and vulnerable Nigerians, who have been hit hard by recent policies, such as the fuel subsidy removal.
In October 2023, President Bola Tinubu formally launched the promised conditional cash transfer programme targeted at 15 million households nationwide billed to receive N75,000 within three months.
TheWitness also learnt that the Federal Government is currently seeking the services of a consulting firm to help with the upgrade of the system for the cash transfer programme.
Information obtained from the World Bank read,
This upgrade is necessary as the National Economic Council (NEC) decided earlier not to use the social register from the previous administration of Muhammadu Buhari for running the conditional cash transfer program due to credibility issues.
The financing agreement document for the National Social Safety Net Program-Scale Up between the Federal Republic of Nigeria and the International Development Association (IDA) of the World Bank showed that the repayment will be made in instalments, with the first payment due on January 15, 2027, and the last payment due on July 15, 2051.
The $800 million loan obtained by the Federal Government attracts a maximum commitment charge rate of one-half of one per cent per annum on the Unwithdrawn Financing Balance and a service charge of three-fourths of one per cent per annum on the withdrawn credit balance, according to the document.
It also disclosed that the interest charge is one and a quarter per cent per annum on the withdrawn credit balance.
Also, a percentage of the principal amount of the loan is expected alongside the other charges, and this will increase over time.
While the first payment will be 1.65% of the principal amount, the last payment will be 3.40%.
