The most disadvantaged groups in society will directly benefit from 60% of the program, according to announcements made by Wale Edun, Minister of Finance and Coordinating Minister of the Economy under President Bola Tinubu.

According to reports, the Nigerian government plans to start a cash transfer program to help 20 million of the nation’s poorest residents.

The project is a component of a larger plan to direct the extra funds raised in the fiscal year 2024 into social intervention initiatives that raise living standards and deal with pressing societal issues.

The most disadvantaged groups in society will directly benefit from 60% of the program, according to announcements made by Wale Edun, Minister of Finance and Coordinating Minister of the Economy under President Bola Tinubu.

Edun emphasised that the government’s focus on domestic resource mobilisation had resulted in revenue growth, with figures for the first half of 2024 exceeding N9.1 trillion—more than double the N4.06 trillion collected in the same period last year. Edun was speaking at a panel session titled “Fiscal Reforms for a More Secure Future” during the 30th Nigeria Economic Summit in Abuja.

“The primary purpose of the increased revenue is to fund social programs designed to lessen the effects of necessary but difficult reforms that have raised living expenses,” Edun said.

Additionally, he revealed a comprehensive program for economic change aimed at combating inflation, creating jobs, and promoting development in important economic sectors.

The total amount of government revenue has than doubled, according to Ạdun. And that was accomplished by heavily utilising technology.

“We have reformed the civil service via the application of technology. We examined the laws and regulations, the amount of money that a corporation might spend, and the portion of its surplus that it was required to give to the government, rather than waiting for government ministries, departments, agencies, and enterprises to comply.

“The social investment program is led by direct transfers to reach the 60% of the population that is impoverished,” it stated. Additionally, 20 million households are currently receiving direct help. And it will increase to a total of 20 million people—four million homes have received payment directly from the government thus far—and eventually reach 15 million households.

“This is how the government of President Tinubu is allocating the funds that result from increased oil production.”

He clarified that the government views housing, manufacturing, oil, and agriculture as the main economic pillars of Nigeria.

He clarified, “We are looking to food production to help bring down inflation.”

“We want to lower the cost of living for Nigerians and increase the availability and affordability of food,” he continued.

Four million households have already benefited from direct cash transfer operations, he pointed out.

Edun outlined the government’s strategic approach to the oil business and stressed the sector’s vital role in producing foreign exchange.

He clarified that the new reforms had drawn significant investments, including an extra $10 million from ExxonMobil and other significant industry participants.

“Our main source of foreign exchange and worldwide income is the oil sector,” he said, expressing optimism about future contributions from both domestic and foreign investors.

The initiatives have improved Nigeria’s economic prospects by encouraging firms to spend around $4.2 billion.

The minister also highlighted other schemes, such the student loan program and consumer credit plans, which are intended to assist workers in making home purchases or converting their cars to run on cleaner compressed natural gas.

Up to N75 billion in grants and loans are being offered by the government in the field of agriculture to help one million small and micro businesses. In order to help bigger enterprises manage their production and operating expenses, particularly in light of recent foreign exchange changes that have affected their profit margins, an extra N75 billion is being provided in tranches of N1 billion each at a nine percent annual interest rate.

Based on enhanced oil output and macroeconomic changes anticipated to save the nation five percent of GDP, this is how President Tinubu and his administration are using the extra cash, according to Edun.

These money are being allocated to a wide range of social investment programs.