25M Nigerian poor get cash payments enabled by digital ID

Around 25 million Nigerians whose names are on the country’s national social register have received cash payments from the federal government as part of a poverty alleviation project. Beneficiaries of these payments are verified biometrically using their National Identification Number (NIN) and the Bank Verification Number (BVN).

Biometric identification for the cash program was launched in October last year, with about 15 million eligible beneficiaries said to have been earmarked at the time.

Speaking about the cash transfer program recently after a National Economic Council meeting, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the first and second tranches of payments have been made, as reported by The Nation.

He explained that the beneficiaries are from about five million households and have their benefits paid either through their bank accounts or digital money wallets. The scheme targets about 67 million citizens in total.

Each household is receiving 75,000 Naira (US$45) per tranche, and the third tranche will be paid subsequently.

The payment of these benefits come at a time when at least 14 million more Nigerians are said to have been pushed into extreme poverty in 2024 alone, according to the Nigeria country analysis of the 2024 World Bank Macro Poverty report.

The report, which makes a country-by-country diagnosis of poverty levels and projections for the developing world, indicates that about 47 percent of Nigerians have now slipped into the poverty threshold or are below the global poverty line of living on less than $2.15 a day.

The publication suggests that to reverse the tides on poverty, the Nigerian government must take bold measures “to contain inflation, boost non-oil revenues, and avoid deficit monetization o support growth and fiscal stability.”

Edun said the federal government will continue with its plan to establish a reliable and accurate social register to enable the government effectively meet its social protection obligations.

Apart from the 25 million people who have received cash benefits, the finance minister also mentioned the number of Nigerians who have benefited from other social intervention programs. He said while 11,000 persons benefited from a consumer credit facility worth 3.5 billion Naira (US$ 2 million) within a period of just five days, 500,000 students have accessed the students loan scheme since it was launched, with the sum of 90 billion Naira (US$ 55 million) already given out.

The government minister also indicated that 600,000 farmers around the country will receive farm inputs and equipment at subsidized rates as part of the broader social support program.

The Governor of Oyo State, Seyi Makinde, who attended the National Economic Council meeting, is also quoted as saying that efforts are ongoing in his state to set up a social register that will not be politicized.

Article Topics

Africa  |  biometric identification  |  biometrics  |  digital ID  |  identity verification  |  National Identity Number (NIN)  |  Nigeria  |  social protection