The Minister of Budget and Economic Planning, Atiku Bagudu, has urged Nigerian states to promptly access the remaining $329.52 million from the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) programme. This call comes as he inaugurated a Federal Cares Steering Committee (FCSC) for the programme in Abuja.
The NG-CARES initiative, supported by a $750 million World Bank loan, aims to mitigate the pandemic’s impact on vulnerable populations and stimulate local economies. Despite the availability of the fund, a substantial portion remains unutilised, with only $420.48 million (56% of the total funds) accessed by states and the Federal Capital Territory (FCT) as of December 31, 2023.
Minister Bagudu highlighted the challenge of low disbursement and emphasized the importance of accelerating the process to provide funding for federal and state governments. The World Bank representative, Lire Ersado, noted the programme’s flexibility, allowing states to tailor interventions to their specific needs, focusing on areas such as social transfers, livelihood support, agricultural development, and SME assistance.
Under the NG-CARES programme, a total of N210.29 billion ($420.48 million) has been released to 35 states and the FCT, with Imo state being the only one yet to meet the criteria for fund disbursement. The document from the Ministry of Budget and Economic Planning revealed that Zamfara state received the highest amount of N15.5 billion, followed by Nasarawa with N15.2 billion, and Lagos with N5.3 billion, among others.
The NG-CARES programme aims to sustain livelihoods, ensure food security, and revive small and medium-sized businesses affected by the COVID-19 pandemic. It also includes measures to mitigate various shocks, such as natural disasters and economic policy impacts. National Coordinator Abdulkarim Obaje called for an enhancement of the programme’s structure, advocating for training, increased funding, and improved performance in states with poor outcomes.
In response to the need for faster fund utilisation, the programme’s deadline was extended to June 30, 2024. To date, NG-CARES has positively impacted 1,656,731 individuals and 44,196 firms across Nigeria, presenting a crucial opportunity for states to accelerate their economic recovery efforts.
Nairametrics