The Nigerian government has announced a new initiative aimed at mitigating the economic challenges faced by millions of consumers in the country. Under this program, N25,000 will be disbursed monthly to 15 million households across Nigeria.
Mr. Wale Edun, the Minister for Finance and Coordinating Minister of the Economy, made this announcement during an interview on Channels TV in Lagos.
The government’s primary objective is to alleviate the economic hardships, particularly for the poor and vulnerable segments of society. Mr. Edun emphasized that President Bola Ahmed Tinubu is committed to fulfilling his promise to support those in need. The intervention program will provide direct payments of N75,000 over a three-month period, which amounts to N25,000 per month for each of the 15 million households. Considering an average household size of five people, this initiative is expected to benefit approximately 75 million individuals.
The current economic challenges in Nigeria have been exacerbated by factors such as skyrocketing inflation, high fuel prices, and the devaluation of the Naira against the US Dollar. These circumstances have made it increasingly difficult for Nigerians to afford basic food items and other essential commodities. Consequently, protests have erupted in various parts of the country, with citizens expressing their discontent with the prevailing socio-economic realities.
To address the issue of food inflation, the Minister for Finance reiterated the government’s commitment to providing grains as a means of cushioning the rising cost of food items. The release of 42,000 metric tonnes of assorted grains, as well as the assurance of a further 62,000 metric tonnes of rice from mega rice millers, aims to stabilize food prices and ensure adequate supply in the marketplace.
In addition to these measures, the government plans to empower artisans, traders, women, and youths by granting them N50,000 each to establish nano businesses. This initiative seeks to enhance national productivity and improve the economic conditions of individuals in these categories. The program will utilize digital verification processes, similar to the direct payment system, and will be implemented across all 774 local governments, benefiting at least 1,000 people in each locality. The government has allocated N50 billion for this purpose, highlighting its commitment to directly assist those in need.
Mr. Edun attributed the current economic hardships to a buildup of money supply and liquidity in the system, coupled with a lack of corresponding increases in production over the past eight years. To address these challenges, the government will deploy technology to ensure efficient payment and revenue systems, eliminating intermediaries and ensuring that funds reach their intended recipients directly.
The government’s comprehensive approach, encompassing financial assistance to households, measures to combat food inflation, and support for nano businesses, aims to alleviate the economic burden on Nigerians and stimulate sustainable economic growth. These initiatives underscore the government’s commitment to improving the standard of living for all citizens and fostering a more stable and prosperous environment for the nation.