The mounting difficulties of food insecurity and rising poverty in Nigeria have prompted the International Monetary Fund (IMF) to call for an expansion of the country’s cash transfer program to cover rural areas.
Julie Kozack, Director of the IMF’s Communications Department, made this recommendation at a recent press briefing.
As to the transcript, which Nairametrics obtained from the IMF’s official website, Kozack emphasized the significance of expanding the reach of the cash transfer system to guarantee that marginalized groups, especially those residing in rural areas, obtain essential assistance.
“The people of Nigeria, especially those impacted by the devastating floods caused by exceptionally heavy rains, are in our thoughts and prayers,” Kozack stated.
She added that some 31 million Nigerians suffer from food insecurity at the moment, which has been made worse by the recent rains, especially in the most impacted areas.
Nigerian authorities have responded to the situation by offering local populations affected by its support.
Kozack stressed that more work still has to be done, especially in terms of growing the government’s cash transfer program.
She emphasized the critical need for focused assistance in areas most susceptible to the effects of both unstable economies and natural disasters brought on by climate change.
She said: “From our perspective, what is important is for the government to continue to roll out the cash transfer system. This is critical to providing help to afflicted households. And given the nature of this crisis, it will require broadening this cash transfer system to cover people in rural areas as well.”
Things To Note
According to a recent World Bank report, cash transfers can help Nigerians escape intergenerational poverty traps, which are exacerbated by low economic development and inflation.
The Nigerian government has been urged by the International Monetary Fund (IMF) to increase cash transfers in order to assist the country’s impoverished citizens in coping with the rising cost of life.
At the same time, the IMF highlighted the suffering Nigerians are experiencing as a result of ongoing reforms and rising inflation.
According to a previous article in the News Chronicles, at least 83% of the recipients of the cash transfer program run by the Nigerian government – which is made possible by a $800 million loan from the World Bank – live in cities.
A World Bank online document about the National Social Safety Net Program-Scale Up (NASSP-SU) project states that as of May 2024, more than three million low-income and vulnerable households were receiving cash transfers.
With 700,000 rural and 2.5 million urban households included in this total, there are noticeably more beneficiaries in urban areas.
