In a fresh move aimed at alleviating the economic challenges faced by Nigerian youths and citizens, the Federal Government announced plans to extend its social security payments net to unemployed graduates and introduce a consumer credit scheme.
These initiatives were disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, after the Federal Executive Council (FEC) meeting on Monday.
Edun emphasized President Bola Tinubu’s commitment to assisting the poorest segments of society, particularly in the face of heightened food prices. He revealed that the government would implement a Social Security unemployment programme to provide stipends to unemployed Nigerian youths, including graduates.
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“At this period of heightened food prices, Mr. President has committed to doing all that can be done to assist in giving purchasing power to the poorest and in that line…we have coming, in the nearest future, an unemployment benefit for the young unemployed, in particular,” he said, without giving the timeline for the implementation.
Furthermore, the Federal Government plans to establish a consumer credit scheme to ease the economic adjustment pains faced by citizens. Edun said that the Chief of Staff to the President, Femi Gbajabiamila, will lead a committee tasked with implementing this scheme, which aims to make consumer credit available and increase the affordability of goods.
Regarding the review of the National Social Investment Programme (NSIP) implemented by the Special Presidential panel, Edun highlighted its outcomes, including the resumption of direct payments to 12 million households comprising 60 million Nigerians. He emphasized the importance of beneficiary identification through national identity numbers and bank verification numbers to ensure transparency and accountability in the distribution of funds.
“The big change that has allowed Mr. President to approve the restart of that direct payments to beneficiaries programme is the verification of the identity of beneficiaries. Each person that receives 25,000 Naira for a total of three months will be identifiable,” he explained.
Similarly, the Minister of Communications and Digital Economy, Dr. Bosun Tijjani, underscored the importance of leveraging existing datasets such as the Bank Verification Number (BVN) and National Identity Number (NIN) to vet beneficiaries and prevent multiple payouts to individuals.
“One of the initial moves that we’re making is leveraging the existing dataset that we have on our people…we will get commitment to ensuring that no one is paid twice, because you have to be properly IDed before you can benefit from that programme,” stated Tijjani.
However, despite the laudable intentions behind these initiatives, challenges such as the lack of reliable data and adequate funding could pose significant hurdles to their successful implementation.
Similar schemes introduced by the government in the past, such as N-Power, had been mired in allegations of corruption. The schemes were alleged to harbor many ghost beneficiaries owing to a lack of reliable identification.
Thus, the success of these social security programmes and the consumer credit scheme is said to depend heavily on accurate and up-to-date information about beneficiaries. Analysts note that without reliable data systems and proper verification mechanisms, there is a risk of inefficiencies, errors, and even potential abuse of the system.
Additionally, the availability of funds is crucial for sustaining these programmes in the long term. While the government has expressed its commitment to assisting the poorest segments of society, the availability of funds for such large-scale initiatives remains a concern.
Limited funding could lead to delays in payments, inadequate coverage of beneficiaries, or even the inability to sustain the programmes over time – particularly now that the government is grappling with heavy economic headwinds that have left its treasury empty.
Similar schemes initiated by the government in the past suffered from inadequate funding, with fund disbursement being abandoned halfway or the scheme being entirely suspended.
Stakeholders said that addressing these challenges will require concerted efforts from the government to invest in data infrastructure, improve data collection and verification processes, and allocate sufficient funds to support these social security programmes and the consumer credit scheme.
However, these initiatives are said to mark a concerted effort by the Federal Government to address unemployment and economic challenges. Economic experts believe that with proper planning, coordination, and resources, these programmes have the potential to make a meaningful impact in improving the livelihoods of Nigerian citizens and stimulating economic growth.