The President Bola Tinubu-led government has announced the reinstatement of its social investment programme, which had been temporarily suspended earlier this year.
The scheme, now overhauled to improve transparency and efficiency, aims to deliver direct financial support to 75 million Nigerians across 50 million households.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the announcement during a ministerial sectoral briefing.
The briefing was held in Abuja to mark the first anniversary of President Bola Tinubu’s administration.
Edun disclosed that the move is designed to alleviate the hardships faced by particularly vulnerable groups within the country.
The Social Investment Programme
He detailed the government’s revamped approach to tackling previous inefficiencies and potential fraud within the programme.
The social investment programme includes initiatives like N-Power and the conditional cash transfer scheme.
It also includes the government enterprise and empowerment programme, and the home-grown school feeding initiative.
It was initially suspended on January 12.
On March 13, in response to calls from the House of Representatives urging the resumption of these crucial welfare initiatives, President Tinubu authorized the formation of a Special Presidential Panel.
Minister Edun chaired the panel.
President Tinubu’s Macroeconomic Reforms
They were tasked with conducting a thorough review and audit of the financial frameworks and policy guidelines governing the social investment programmes.
At the briefing, Edun reassured the public that the federal government had taken significant steps to ensure the programme’s integrity and effectiveness.
Edun said: “I am duty-bound to give you an overview of the strategy, policies, and implementation of Mr President’s reform programme.
Immediately upon assuming office, Mr President launched macroeconomic reforms.
The aim was to restore stability to the Nigerian economy, including subsidy reforms and foreign exchange market reforms.
The Negative Effects
These reforms caused a spike in costs for individuals and businesses
But, Mr President is committed to counterbalancing the negative effects with interventions across the social spectrum.
“The government has restarted the social investment program, providing direct payments to 75 million Nigerians in 50 million households.
Access to credit has been improved.
“1bn Naira will be allocated to consumer credit and grants of 50,000 Naira being given to 1 million nano industries.”
Food Inflation
The National Bureau of Statistics, in its April CPI report, said Nigeria’s 33.69 percent inflation rate was largely driven by food inflation, which stood at 40.53 percent in April 2024.
Nigerians have continued to lament the steady rise in the prices of goods and services partially fueled by the removal of petrol subsidies.
However, the minister said that with 30 percent of the world’s population affected by issues of food security, agriculture would play a critical role in addressing global food insecurity.
He stated: “Food security is a worldwide issue, affecting 30 per cent of the world’s active population, and Nigeria is no exception.
Agriculture Is Critical
“As I mentioned earlier, agriculture is critical, and success in this area is crucial.
Efforts are being redoubled, with 200bn Naira provided by the Ministry of Finance towards an intervention program.
Also Read: Subsidy Is Gone: Nigerians Mark Tinubu’s One Year In Office With Flashback
“Just today (Tuesday), we met with the social investment prudential panel and development partners.
We discussed the President’s emergency plan for food security.
We talked about advancing this issue and providing food, nutrition, and security.
These areas will receive more attention in the coming weeks.
The economy is growing at 2.98 per cent in the first quarter of this year.
That is higher than the population growth rate and last year’s growth rate.
Agriculture has the potential to help move the economy forward and reduce inflation.”
The Multiplier Effect
The minister emphasised the importance of infrastructure in growing the economy, building employment, and creating multiplier effects throughout the economy.
A fund has been set up to provide institutional long-term support to support housing construction and low-interest mortgages for the average Nigerian.
He added that the companies that exited Nigeria were not to be blamed on the current government.
