The Federal Government is reportedly set to secure a fresh loan of $400 million from the World Bank for the conditional cash transfer to 15 million households.
Recall that in his nationwide address to commemorate the country’s independence on October 1, President Bola Tinubu announced the conditional cash transfer to 15 million households for three months from October to December 2023 as one of the measures to cushion the effects of petrol subsidy removal on Nigerians.
President Tinubu also announced the approval of an N35,000 provisional allowance for junior federal workers over the next six months.
He said the approval followed negotiations with labour unions and other stakeholders in the business community to increase the federal minimum wage without triggering undue inflation.
Also, recall that the Muhammadu Buhari administration had secured $800m from the World Bank to provide post-petroleum subsidy palliatives for over 50 million Nigerians.
It was gathered that the loan was meant to be accessed by the succeeding administration.
However, the $400m and the $800m secured by the past government will bring to $1.2bn the amount that the Federal Government is borrowing from the World Bank for the cash transfer.
Speaking to The Punch, a top government official, who spoke on condition of anonymity, said the Tinubu administration would fund the N35,000 cash award to civil servants by sending a supplementary appropriation bill to the National Assembly.
The official added that the government is taking a World Bank loan for the N25,000 payment for three months for 15 million households.
He said, “The government is funding the N35,000 wage increase for all federal civil servants and it is not taking a loan. The one the government is taking a loan for is the one of N25,000 multiplied by three months for 15 million households. There is a loan of $800m on this one and the government is adding $400m, making it $1.2bn, which will be used for the conditional cash transfer.
“But, the other one (cash award to federal civil servants), the government will fund it. So, most likely there will be a supplementary appropriation for that because it is illegal to spend money out of the government budget.”
