Nigeria to Donate $1.5bn Cash to Vulnerable Households: Finance Minister
© AFP 2023 MICHELE SPATARIA vendor counts old and newly introduced Nigerian Naira banknotes in a market in Lagos on February 16, 2023.
© AFP 2023 MICHELE SPATARI
The West African country is seeking funds to accelerate economic growth and support economic reforms to help the more than 40% of its 200 million citizens living in poverty. Last week, Nigeria's cabinet agreed to borrow $1.5 billion from the World Bank.
Nigeria's Finance Minister, Wale Edun, announced the decision to distribute $1.5 US billion dollars in cash to 15 million vulnerable households at a press conference in the capital, Abuja, on Tuesday.
The main purpose of the decision is to relieve the increased prices of food, fuel, and other necessary commodities, according to media.
Each eligible household will receive $32 in cash for a 3-month period starting this month, the finance minister told media. The government estimated that vulnerable households represent 62 million Nigerians in a country of more than 230 million.
In August, President Tinubu emphasized that the prosperity Nigerians require will only come when poverty is eradicated from society with the focused cooperation of Nigeria's private sector leaders.
Last week, the World Bank announced its ongoing negotiations with the Nigerian government in order to provide $1.5 billion in financing. The funds are expected to be supplied under the Development Policy Financing (DPF) program. The DPF gives direct budget financing and supports national reforms aimed at boosting the economy and specific sectors, according to the World Bank.
The West African country is seeking funding to accelerate economic growth and support economic reforms to help the more than 40% of its 230 million citizens living in poverty. The World Bank is Nigeria's largest multilateral creditor, with approximately $14.51 billion owed by the country as of June 2023.