Nigeria Sets Up Social Welfare Scheme

by Ike Obudulu Last updated on March 13th, 2017,

Nigeria announces a welfare scheme to help the poor, that is gaining traction across Africa. From now until the end of the year, one million Nigerians will receive 5,000 naira ($16.4, 15.3 euros) a month in a bank account set up specifically to receive the assistance payments. Up to five million people should benefit by 2021.

Nigeria’s official minimum wage is 18,000 naira — not enough given the rising cost of living. The country is suffering from double-digit inflation, and 18,000 naira is enough to buy just a 50-kilogram (110-pound) bag of rice.

It is estimated this “social security net” will cost nearly 977 billion naira over three years.

The World Bank is supervising the project and has granted a loan of $500 million, but it still needs parliamentary approval, which is far from guaranteed.

Other planned welfare projects include youth training schemes, food distribution programmes in primary schools, and micro-credit initiatives for women a first in a country with a free-market tradition. But unlike elsewhere in Africa, such as in South Africa or Kenya, help is not necessarily provided to older people or the disabled. To reduce the risk of fraud, the beneficiaries are appointed by community groups, and the funds are transferred directly by the federal government into individual accounts.

A similar scheme has been rolled out in Ivory Coast, where 58 percent of the population lives in poverty despite economic growth that hit 7.8 percent last year.

Starting this month, 5,000 poor rural households will receive 36,000 CFA francs ($59, 55 euros) every quarter until 2020. The government expects 35,000 households will eventually benefit.

In Senegal, nearly 300,000 homes — or about two percent of the population — will be given state aid of up to 25,000 CFA francs each quarter, according to the government.

https://nigeriacircle.com Beyond News. Connect. Empower your future.

Author

Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
Phone
Email

4 comments

  1. A powerful share, I simply given this onto a colleague who was doing a little bit evaluation on this. And he in reality bought me breakfast as a result of I discovered it for him.. smile. So let me reword that: Thnx for the treat! However yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading extra on this topic. If doable, as you become expertise, would you thoughts updating your blog with more particulars? It’s extremely helpful for me. Big thumb up for this weblog publish!

  2. Just desire to say your article is as astonishing. The clarity on your submit is simply great and that i can suppose you are a professional in this subject. Fine along with your permission allow me to seize your RSS feed to keep up to date with drawing close post. Thanks a million and please continue the gratifying work.

Leave a Reply