In a recent national broadcast, President Bola Ahmed Tinubu made a significant announcement aimed at alleviating the adverse effects of the removal of fuel subsidies on millions of Nigerians.
He disclosed that a monthly stipend of N5000 would be provided to poor citizens, and commercial banks would play a crucial role in verifying the eligibility of beneficiaries.
Monthly Cash Transfer to Support Vulnerable Nigerians:
President Tinubu’s announcement of a monthly cash transfer of N5000 is a proactive measure to cushion the impact of the fuel subsidy removal on the less privileged in the country.
The decision comes amidst growing concerns over the rising costs of goods and services resulting from the subsidy removal.
The financial assistance is expected to provide relief and basic support to the poor masses during these challenging times.
Exclusion of the National Social Register:
In his address, President Tinubu clarified that the national social register would not be used for the distribution of the monthly stipend.
The social register, which was previously used to identify over 61 million vulnerable Nigerians eligible for government social programmes, faced credibility issues and was eventually abandoned by the National Economic Council.
Instead, the President emphasized that commercial banks would be responsible for verifying the eligibility of potential beneficiaries.
This move aims to ensure a more reliable and efficient process in identifying those who truly need assistance.
Collaborating with Financial Institutions for a Smooth Transaction Process:
To implement the monthly cash transfer effectively, the expertise of Development Finance Institutions, commercial banks, and microfinance banks will be tapped into.
These financial institutions will work together to develop a robust and appropriate transaction structure that benefits all stakeholders involved.
By leveraging the knowledge and resources of these institutions, the government seeks to ensure a transparent and secure distribution of funds to the intended recipients.
Transition from the Former Administration’s Approach:
The decision to shift away from the national social register, previously used under former President Muhammadu Buhari’s administration, reflects the government’s acknowledgment of the register’s credibility issues.
In its place, the proposal for a cash transfer programme based on states’ social registers and a cash reward policy for public servants was put forth by the National Economic Council.
President Tinubu’s new approach is expected to address the shortcomings of the previous system and enhance the effectiveness of the cash transfer initiative.
Conclusion:
President Bola Ahmed Tinubu’s announcement of a monthly cash transfer to support the poor and vulnerable citizens in Nigeria is a crucial step towards alleviating the impact of fuel subsidy removal.
By involving commercial banks in the verification process and shifting away from the previous national social register, the government aims to enhance transparency and ensure that assistance reaches those who truly need it.
This initiative demonstrates a proactive approach to mitigating economic challenges and providing essential support to the most vulnerable members of society.
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