Govt To Launch Cash Transfer Program To Help Vulnerable Nigerians

The National Economic Council (NEC), consisting of 36 state governors and Vice President Kashim Shettima, announced on Thursday that the government will start a cash transfer program to reach out to vulnerable Nigerians.

The program was announced after almost two months of subsidy removal, which has impacted Nigerians negatively as it inflated the cost of fuel and other related goods and services.

Following the meeting, NEC has set up a sub-committee that will take care of the program to improve the economic conditions.

The Governor of Ogun State, Dapo Abiodun told the State House correspondents following the meeting at the Aso Rock Villa, Abuja that "it is states that are better positioned to do that enumeration to ensure the integrity of the social register," Punch reported.

Abiodun further shared that a states-generated register "is aimed at enhancing the integrity and reliability of the National Social Register and ensuring that resources go to the intended beneficiaries."

"We also proposed that each state begin to plan towards implementing a cash transfer program based on their social register of the states," Abiodun said. "It was prescribed that it should be implemented for six months in the first instance."

He went on to explain why the government will be taking six months to implement this program and said that "the idea is that as much as we're also particular about ameliorating the pains of our people immediately, a lot of sustainable measures are being put in place and it's our hope that within now and the next six months, those sustainable measures would have begun to be visible."

"And then we can begin to taper down on these cash awards," he added. "These would be funds that will be placed in the hands of civil servants that will be tax exempt."

The decision indicates that the governors rejected the existing National Social Register (NSR), which has more than 61 million vulnerable Nigerians. NSR was originally introduced by former president, Muhammadu Buhari's government.

Governor Chukwuma Soludo of Anambra State acknowledged the fact that the country does not have a "credible register" that would help the government to reach out to the vulnerable Nigerians.

Governor Soludo further affirmed that the NEC is working on ways to cushion the impact caused by subsidy removal.

On the inauguration day, held on May 29, President Tinubu announced fuel subsidy removal, which skyrocketed petrol prices from N195 per litre to N600 per litre.

Following subsidy removal, transport company Uber announced that it has increased fares to ensure that drivers can cover their fuel costs and deal with inflation. Moreover, Point-of-Sale operators have agreed on increasing transaction charges across Lagos, Ogun, and Edo states.

Despite multiple challenges in the country, the president believes Nigeria has no reason to fail, adding that the government is on the "right track so far."