According to reports, the Federal Government is likely to win a new $400 million loan from the World Bank for the conditional cash transfer to 15 million people.
Remember that in his national address to commemorate the country’s independence on October 1, President Bola Tinubu announced a conditional cash transfer to 15 million households for three months, from October to December 2023, as one of the measures to mitigate the effects of the removal of petrol subsidies on Nigerians.
President Tinubu also announced a N35,000 provisional payment for junior federal employees for the next six months.
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He stated that the permission came after consultations with labour unions and other corporate partners to raise the federal minimum wage without causing excessive inflation.
Also, the Muhammadu Buhari administration obtained $800 million from the World Bank to offer post-petroleum subsidy palliatives for nearly 50 million Nigerians.
It was learned that the loan was intended to be used by the succeeding administration.
However, the $400 million and $800 million secured by the previous administration increase the total amount borrowed from the World Bank for the cash transfer to $1.2 billion.
Speaking to The Punch on condition of anonymity, a top government source said the Tinubu administration will fund the N35,000 cash prize to civil personnel by submitting a supplementary appropriation bill to the National Assembly.
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The official added that the government is taking a World Bank loan for the N25,000 payment for three months for 15 million households.
He said, “The government is funding the N35,000 wage increase for all federal civil servants and it is not taking a loan. The one the government is taking a loan for is the one of N25,000 multiplied by three months for 15 million households. There is a loan of $800m on this one and the government is adding $400m, making it $1.2bn, which will be used for the conditional cash transfer.
“But, the other one (cash award to federal civil servants), the government will fund it. So, most likely there will be a supplementary appropriation for that because it is illegal to spend money out of the government budget.”
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