The Federal Government will spend the sum of N610 billion for temporary wage awards to federal civil servants and a conditional cash transfer program to vulnerable individuals and households.
This is according to the proposed supplementary budget for Ministries, Departments and Agencies (MDAs) seen by Nairametrics.
In the document, the wage award for four months will cost the federal government around N210 billion while the conditional cash transfer will gulp N400 billion.
During President Tinubu’s Independence Day address to the nation, he announced an N25,000 wage award to “low-grade workers” in the federal civil service as part of measures to avert a nationwide protest already in the pipeline by organized labour unions across the country.
However, after further negotiations with organized labour unions, the amount was increased to N35,000 and applied to all cadre of workers in the federal civil service.
Also, the Ministry of Humanitarian Affairs and poverty alleviation has embarked on a series of interventions to address poverty and provide succour to the most vulnerable Nigerians in the wake of fuel subsidy removal and record-level inflation.
In October, the ministry launched the conditional cash transfer program aimed to transfer N25,000 to 15 million households for three months.
Also, the ministry is planning to begin the N75 billion market women fund also called the “Iyaloja” fund which will provide interest-free loans of up to N50,000 to market women across the 109 senatorial districts across the country.
The Minister of Humanitarian Affairs and poverty alleviation said the program will commence in November.
The removal of fuel subsidies and other reforms undertaken by President Tinubu’s reforms pushed Nigeria’s inflation rate to record levels.
The World Bank had estimated that the removal of fuel subsidies would send around 7 million Nigerians into poverty.
To mitigate this scenario, the administration of former President Buhari secured an $800 million World Bank facility for cash transfer to poor Nigerians.