Paragraph 1: The World Bank’s financial support for Nigeria’s social safety net has seen a significant increase, with an additional $215 million disbursed under the $800 million National Social Safety Net Programme-Scale Up (NASSP-SU). This brings the total disbursement to $530 million, representing 66.25% of the total loan, leaving approximately $270 million still available. The NASSP-SU, approved in December 2021, aims to alleviate the impact of economic hardship on vulnerable Nigerians through conditional cash transfers. While the World Bank’s official site doesn’t yet reflect the exact date of the recent disbursement, indications suggest it occurred in the current month. The programme was initially designed to provide N5,000 monthly to beneficiary households, but has been revised to N25,000 monthly for three months under the current administration, targeting 15 million households.
Paragraph 2: The journey of the NASSP-SU has been marked by significant delays and challenges. Despite approval in 2021, disbursement didn’t commence until late 2023, resulting in Nigeria incurring over $6.18 million in interest charges before the funds were even utilized. This delay can be attributed to various factors, including administrative bottlenecks, political transitions, and, most notably, allegations of corruption and mismanagement within the Ministry of Humanitarian Affairs and Poverty Alleviation, the agency responsible for overseeing the program. Records reveal multiple interest payments made by Nigeria throughout 2024, even as a substantial portion of the loan remained undisbursed, adding to the overall cost of the program.
Paragraph 3: A series of corruption scandals have plagued the Ministry of Humanitarian Affairs and Poverty Alleviation, further complicating the implementation of the NASSP-SU. The Economic and Financial Crimes Commission (EFCC) uncovered alleged fraud involving billions of Naira meant for social interventions, leading to investigations and arrests. Both former Minister Sadiya Umar-Farouq and her successor, Dr. Betta Edu, faced scrutiny over alleged misappropriation of funds. The EFCC investigation revealed substantial sums allegedly laundered through contractors and third parties, highlighting the vulnerability of social programs to corruption and the need for stronger oversight mechanisms.
Paragraph 4: The gravity of the corruption allegations prompted President Bola Tinubu to suspend Dr. Edu and order a comprehensive investigation into the ministry’s financial dealings. A special investigative panel, headed by the Minister of Finance, Wale Edun, was established to review and restructure Nigeria’s social investment programs, with a focus on enhancing transparency and accountability. The government, in collaboration with the Central Bank of Nigeria and the National Identity Management Commission, also implemented stricter beneficiary registration requirements, mandating Bank Verification Numbers (BVNs) and National Identity Numbers (NINs) to improve control over disbursement and minimize the risk of fraud.
Paragraph 5: Despite the disbursement of funds and ongoing efforts to improve the program, the World Bank’s assessment of the NASSP-SU remains “moderately satisfactory.” While acknowledging progress in certain areas, the World Bank expressed significant concerns regarding financial management, procurement processes, and monitoring and evaluation, all of which were rated “moderately unsatisfactory.” These concerns highlight ongoing weaknesses in the program’s implementation, particularly in areas crucial for ensuring transparency, accountability, and effective utilization of funds. The project is scheduled to close at the end of 2025, leaving limited time to address these shortcomings.
Paragraph 6: The NASSP-SU builds upon a previous social safety net project that also faced challenges related to corruption and mismanagement. The World Bank’s debarment of two Nigerian companies and individuals involved in fraudulent practices underscores the ongoing risks of corruption within these programs. These sanctions highlight the importance of stringent oversight and robust anti-corruption measures. The implementation of the NASSP-SU requires strengthened collaboration between agencies like the National Social Safety Nets Coordinating Office (NASSCO) and the National Cash Transfer Office (NCTO) to ensure that funds effectively reach the intended beneficiaries and that the program achieves its ultimate goal of alleviating poverty and vulnerability in Nigeria. The success of the program ultimately hinges on addressing the systemic issues that have hampered previous efforts and ensuring transparency and accountability at every stage.
