Nigerians have faulted the proposed $800million World Bank grant that the federal government intends to borrow to be used as palliatives ahead of the proposed fuel removal in June. They have criticised the move describing it as ‘unnecessary’ and would not alleviate the pains of the subsidy removal, as stated by the government.
They also accused the government for lack of transparency especially in matters of loans, a development they claim runs contrary to the Fiscal Responsibility Act.
Federal Government through the Minister of Finance, Budget and National Planning, Zainab Ahmed, had explained that the first tranche of the cash transfers will be given to the most vulnerable in the society through a national social register.
The minister further said that the palliative will be targeting about 50million vulnerable Nigerians or 10million households. She added that they are talking with the newly inaugurated Presidential Transition Council, PTC, and the incoming administration to drive the palliative programme.
Of the $800million, the finance ministry will reportedly spend about $53 million for hiring staff, office administration, committee overheads and see to the logistics of training and workshops.
The repayment plan for the $800 loan, according to the agreement between the FG and the International Development Association (IDA), the concessional lending arm of the World Bank Group, is to spread till 2051 – a period of 28 years, even as the loan continues to generate reactions from concerned Nigerians.
Despite the disagreements and discontent surrounding the proposed loan it seems that the outgoing government of Buhari is bent on embarking on this venture for reasons best known to the government alone.