FG Disburses ₦330bn in Social Protection Funds
By Patience Ikpeme
The federal government has disclosed that it has disbursed a total of ₦330 billion directly to households as part of its social protection programme.
Mr. Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, who addressed journalists in Abuja on Wednesday, also announced the government’s decision to institutionalize the program by capturing it in the nation’s annual budget.
The Minister provided a detailed breakdown of the program’s progress, stating that the government’s target is to reach 15 million households with payments of ₦25,000 each, distributed in three tranches.
“To date, 8.11 million households (54%) have received their first tranche, 2.75 million households have received their second tranche and 2.43 million households have completed all three tranches,” he said. The disbursement has seen a significant regional split, with the North receiving 72% and the South receiving 28% of the funds.
A gender breakdown of beneficiaries shows that females received 69% of the disbursements, while males received 31%. By age group, beneficiaries are composed of 8% under 20, 30% between 21 and 35, 22% between 36 and 50, 36% between 51 and 65, and 4% above 65.
Minister Edun addressed the initial delay in the pace of disbursement, attributing it to a lag in the National Identity Number (NIN) enrolment process. He assured that the government is addressing the issue to accelerate the payments.
He noted that the government’s ambition is for 45% of the 15 million beneficiary target to be female-led households. “With the systems built by NASSCO and NIMC, the outlook for completing payments is strong. We are prioritising identity and payments exception clearance to reach the remaining 6.9 million households over the coming months,” he said.
The Minister explained that by combining social protection with economic reform, the government is ensuring that growth is inclusive. “By combining social protection with economic reform, we are ensuring that growth is inclusive and that prosperity is shared,” he explained.
Providing further context, Dr. Funmi Olotu, the National Coordinator of the National Social Safety-Nets Coordinating Office (NASSCO), explained that the payments are in tranches because of the new direct debit transfer system.
“Mr. President said we should link the NIN to the National Social Register so that we do direct debit transfer, no more the traditional way of making payments,” she stated.
Dr. Olotu went on to say that the National Social Register was built in collaboration with the World Bank, using more than 40 variables to identify vulnerable households. “The National Social Register is not a political register. The Minister of Finance cannot give me names to put on my register. Mr. President cannot give me names to put on my register,” she said.
She also provided a history of the program’s funding. She said the World Bank provided an $800 million loan, which was initially meant to provide N5,000 to beneficiaries for six months.
However, the current administration decided to increase the payment to N25,000 for three months. “When this administration came, they said 25,000 Naira. They increased it so that the households have more money because of the reforms,” she said.
Dr. Olotu clarified that the payments are per household, not per individual, and that the federal government is expected to cover any resulting gap in funding.
She concluded by stating that an executive order has been issued requiring all government interventions to use the National Social Register.
