In response to the prevailing economic challenges faced by millions of Nigerians, the federal government has announced plans to reinstate direct cash transfers to the country’s poorest and most vulnerable citizens. At present, around 3 million individuals benefit from these programs, but given the rising cost of living, the government foresees an additional 12 million households qualifying for direct payments.
Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, disclosed this initiative during the Ministry’s retreat held in Uyo, Akwa-Ibom state on Wednesday, February 21. Edun emphasized the government’s commitment to using technology to facilitate seamless and transparent payments, aiming to avoid manual processes and delays.
The expansion of direct cash transfers is designed to reach a broader population grappling with economic hardships, providing essential funds directly to those in need to help alleviate poverty. The decision to inform President Bola Tinubu of the panel’s recommendation before the final report is completed underscores the urgency of the situation.
Edun highlighted the government’s efforts to address the impact of soaring food prices on household budgets. In this regard, President Tinubu’s intervention to release 60,000 metric tonnes of food grains aims to increase food availability and reduce costs.
Defending the direct cash transfer plan, Edun pointed to historical evidence showing that putting money directly into the hands of individuals reduces poverty, allowing them to address their most pressing needs. The ultimate goal, he stated, is to grow the economy, create jobs, and lift millions of Nigerians out of poverty.
Acknowledging the inflationary impact of historical reliance on “Ways and Means” financing, Edun emphasized the government’s commitment to reducing this debt burden through various financial and revenue-generating initiatives. He also stressed the importance of collaboration between the Ministry of Finance and the Central Bank in tackling inflation and stabilizing the Naira.
In conclusion, Edun expressed confidence that the government, with the support of the Central Bank, will successfully address the economic challenges and restore confidence in the national currency.
