The World Bank has finally given Nigeria $299.99 million of the $800 million authorized for the National Social Safety Net Program-Scale Up.

37.5% of the $800 million that was decided upon to lessen the impact of the loss of subsidies is represented by the payment.

Details were provided by the World Bank, and Nairametrics was informed by a bank source that the payment to the Nigerian government was made not too long ago.

Additionally, data from the Bretton Woods organisation indicated around 37% There is a pending amount of about $442.88 million, which represents 5% of the total loan issued.

The World Bank authorised the National Social Safety Net Programme-Scale Up on December 16, 2021, and it is anticipated to operate until June 30, 2024.

According to the document, the $800 million loan that the Federal Government acquired is subject to a maximum commitment fee rate of 0.5 per cent annually on the unwithdrawn financing amount and a service charge of 0.75% annually on the withdrawn credit balance.

Furthermore, the World Bank revealed that the withdrawn credit balance has an annual interest penalty of 1.5%.

The Federal Ministry of Humanitarian Affairs and Poverty Alleviation, led by Minister Dr. Betta Edu, will carry out the $800 million plan.

The Federal Government intends to use the loan to fund a monthly cash transfer initiative for Nigerians who are poor and vulnerable and who have been severely impacted by the recent petrol subsidies removal policy.

President Bola Tinubu officially started the much-anticipated conditional cash transfer plan in October 2023. The programme is intended to benefit 15 million families countrywide and would pay out N25,000 every month, or N75,000 over three months.

To assist with the system improvement for the cash transfer program—which the state government, led by the Nigerian Governors’ Forum, criticised and said needed a new database—the federal government is presently looking to hire a consultancy firm.

Together with the other fees, a portion of the loan’s principle is also anticipated; this portion will rise with time.

The final payment will be 3.40%, whereas the initial payment will be 1.65% of the principal.

The World Bank noted in its statement: “The Federal Republic of Nigeria has received financing from the World Bank toward the cost of the National Cash Transfer Office under the Federal Ministry of Humanitarian Affairs & Poverty Alleviation and implementing agency of the Client and intends to apply part of the proceeds toward payments under the contract for Upgrade of MIS for NASSP-SU.”

“The consulting services (“the Upgrade of MIS for NASSP-SU”) include carrying out the development, implementation, deployment, and maintenance of a user-friendly, interactive, web-based MIS System to support the activities of NASSP – -SU of the Federal Republic of Nigeria for effective and efficient delivery of Programme benefits to the Poor and Vulnerable.

For the estimated level of effort (professional staff months) as contained in the TOR, for an implementation period of 120 days plus warranty and after-sales service; the expected start date of assignment, should be in the next three months from the advert date.”