How 3 million poor Nigeria households benefit from $800m World Bank loan

The World Bank has revealed that over three million poor and vulnerable households in Nigeria have benefited from a $800 million loan aimed at cushioning the effects of government policies, including the removal of fuel subsidies.

The loan, which was approved in 2021, has been extended by 18 months to December 31, 2025, to ensure its successful implementation.

According to a restructuring paper by the World Bank, the loan has targeted 15 million households with N75,000 in temporary cash transfers, distributed in three monthly payments. Of the beneficiaries, 700,000 households were from rural areas and 2.5 million from urban areas.

The National Social Safety Net Program-Scale Up project aims to provide shock-responsive safety net support to Nigeria’s poor and vulnerable, with a planned monthly cash transfer program for those affected by recent policies.

Despite delays, the project remains central to the government’s plan to provide temporary cash transfer support to those affected by high inflation and economic reforms.

The World Bank loan in Nigeria has also been utilized to develop a digital payment delivery mechanism to deliver transfers directly to beneficiaries’ accounts or wallets.

Additionally, the project is being integrated with the National Identification Number to further strengthen the targeting system.

The World Bank has also commenced the preparation of a Security Risk Assessment and Management Plan to advise on adequate measures to mitigate security risks.