The Minister of Budget and Economic Planning, Sen. Abubakar Atiku Bagudu, has urged states in the country to immediately access the outstanding $329.52 million balance from the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) programme.
Bagudu, who made the call while inaugurating a Federal Cares Steering Committee (FCSC) for the programme in Abuja, lamented that one of the challenges the federal government had been facing in utilization of the fund is low disbursement.
The NG-Cares, which is backed by a $750 million World Bank loan at a concessionary loan nature with less than a 2% interest rate, is designed to alleviate the pandemic’s impact on vulnerable populations and stimulate local economies.
According to data on the disbursement of the fund so far, as of December 31, 2023, only $420.48 million, representing 56% of the total funds, has been accessed by states and the Federal Capital Territory (FCT).
The minister said: “The challenge we have is low disbursement… So, if we can accelerate it, that is a source of funding to the federal and state governments.”
The World Bank representative, Lire Ersado, elaborately highlighted the programme’s flexibility with focus areas of social transfers and livelihood support, agricultural development, and SME assistance, which include allowing states to tailor the interventions to their specific needs.
The disbursement data based on official documents showed that a total sum of N210.29 billion ($420.48 million) under the NG-CARES programme had been released to 35 states and the Federal Capital Territory (FCT), with Imo state remaining the only state that has not met the criteria to access the funds.
For instance, a document from the Ministry of Budget and Economic Planning showed that Zamfara state got the highest amount of N15.5 billion, Nasarawa got N15.2 billion, Lagos accessed N5.3 billion, Kogi got N698.3 million, and Benue received N370.8 million.
Also, the FCT got N3.4 billion. Katsina had accessed N3.2 billion, Kebbi received N9.2 billion, Kwara got N5.1 billion, Niger had accessed N15.2 billion, Ogun received N2.012 billion, Sokoto got N11.6 billion and Rivers also accessed N6.7 billion.
The National Coordinator of NG-CARES programme, Abdulkarim Obaje, advocated the need for enhancement of the programme’s structure through improved training of manpower, increased funding, and even a name change to “Nigeria Community Action for Recovery and Economic Stimulus (NG-CARES)”.
Obaje also stressed the the importance of advocacy to improve understanding and performance of the programme, particularly in states with poor performance.
The National Coordinator said: “The Federal Team supported by the World Bank Task Team should conduct strong advocacy to State key stakeholders to understand the principles of the Programme for Results (PforR) financing instrument and the value added of the NG-CARES programme for supporting the poor and vulnerable. Emphasis will be on poor-performing States for the advocacy exercise.”
By its design, the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) programme targets the sustenance of livelihoods, food security, and the revival of small and medium-sized businesses affected by the COVID-19 pandemic.
The programme also includes measures to mitigate various shocks, including natural disasters and economic policy impacts.
Based on the need for improved disbursement and utilization of the fund, the Federal Government recently adjusted the programme’s deadline by one year, shifting the closing date to June 30, 2024.
The data on the fund’s disbursement and utilization indicated that the NG-CARES had positively impacted 1,656,731 individuals and 44,196 companies as beneficiaries nationwide.
