Over three million poor and vulnerable households have benefitted from the $800 million palliative loan provided by the World Bank to alleviate the impact of recent government policies, including the fuel subsidy removal. This significant support, detailed in the World Bank’s restructuring paper, aims to enhance social safety net programs amid economic challenges.
The loan has assisted 700 thousand households in rural areas and 2.5 million households in urban areas. The Federal Government requested an extension until December 31, 2025, to continue effectively implementing the National Social Safety Net Program-Scale Up project.
The initiative targets approximately 30 million beneficiaries with cash transfers, utilizing digital payment mechanisms for efficient delivery. Despite setbacks, the government is committed to providing monthly support to the poor affected by economic reforms.
The restructuring includes changes in project leadership and benefit size adjustments to address rising inflation. Additionally, efforts to mitigate security risks have been put in place due to recorded incidents.
This loan, with specific terms and charges, signifies a crucial step in aiding vulnerable households during challenging times.