Cost of Living: Tinubu offers 12 million Nigerians N8,000 for six months

The federal government plans to pay 12 million Nigerians N8,000 monthly for six months as a way of cushioning against high cost of living made worse by the removal of petrol subsidy.

The payment targets “poor and low-income people” and funding will come from a $800 million loan from the World Bank arranged for by the administration of former President Buhari.

– Slow response

The removal of fuel subsidy on May 29 sent the price of the product up by nearly 200%, significantly raising living costs for Nigerians already struggling with high inflation. A litre of petrol now costs at least N537, up from below N200.

Workers have demanded higher pay, but the new government of Bola Tinubu has been slow in unveiling its plans to cushion hardship.

The House of Representatives on Thursday approved Mr Tinubu’s request to amend the 2022 supplementary budget and release N500 billion for payments to families.

The president also requested the approval of the Senate for the $800 million World Bank loan to finance its National Safety Net Programme.

– President’s letter

In his letter, read by the senate president, Godswill Akpabio, at plenary on Thursday, President Bola Tinubu said:

“Please note that the Federal Executive Council, led by former President Muhammadu Buhari approved an additional loan facility to the tune of $800 million.

“It is to be secured from the World Bank for the National Social Safety Net Programme.

“The purpose of the facility is to expand coverage of shock responsive safety nets support for the poor and vulnerable Nigerians and to help them cope with the cost of meeting basic needs.

“You may further wish to note that under the conditional cash transfer window of the programme, the Federal Government of Nigeria will transfer the sum of N8, 000 a month to 12 million poor and low-income people.

“This is for a period of six months with a multiplier effect on about 60 million individuals.

“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.

“It is expected that the programme will stimulate economic activity in the informal sector and improve nutrition, health and education outcomes for beneficiary households.

“Given the above, I wish to invite the senate’s approval for the additional loan facility of $800 million to be secured from the World Bank for National Social Safety Net Programme.”