Nigeria Plans N5.25 Trillion Cash Transfer Program, But Key Sectors Receive Less Funding
The Nigerian Government has unveiled a plan to distribute N75,000 to approximately 70 million poor Nigerians as part of an effort to combat the growing poverty in the country. According to a statement by Hon. Aliyu Audu, Senior Special Assistant to the President on Public Affairs, the initiative aligns with President Bola Tinubu’s commitment to addressing the nation’s poverty challenges.
Currently, Nigeria’s National Cash Transfer Office, designed to provide financial assistance to vulnerable households, has enrolled nearly 1.997 million households in the National Beneficial Register, with a total of 9.987 million individuals on record. However, the government aims to expand the program to reach a broader population of 70 million Nigerians.
The government’s ambitious cash transfer initiative is projected to cost N5.25 trillion in 2025, a staggering amount that will be allocated directly to the poor. This sum represents a significant portion of the country’s overall planned expenditure for the year, amounting to 35.1% of the total budget designated for capital needs. In comparison, sectors such as defence and security, infrastructure, health, and education are set to receive considerably less funding. Defence and security are expected to receive N4.91 trillion, infrastructure will receive N4.06 trillion, health will get N2.48 trillion, and education is allocated N3.52 trillion.
This allocation has raised concerns, as critics question whether prioritizing cash transfers over critical infrastructure and essential services is the right approach for a country grappling with poor roads, inadequate healthcare, and a lack of access to clean water.
Furthermore, Nigeria’s history of corruption has cast doubts on the efficiency and transparency of such large-scale financial initiatives. Just last month, the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, was suspended over allegations of diverting funds intended for social welfare programs into private accounts. This has fueled skepticism about the government’s ability to manage the funds properly and ensure that the resources reach the intended beneficiaries.
As the government moves forward with its N75,000 cash transfer program, Nigerians are left to wonder whether this initiative will truly alleviate poverty or if it will become another chapter in the country’s long-standing struggles with financial mismanagement.
