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Hardship: Nigerian govt to resume direct cash transfers to 12m citizens

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Nigeria’s Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has revealed that the federal government will resume direct transfer of cash to 12 million indigent citizens to cushion the hardship they are currently going through.

The minister, who made the announcement in Uyo, Akwa Ibom State in southern Nigeria on Wednesday during a retreat organised by the ministry, said the direct cash transfer would be for the poorest and most vulnerable Nigerians.

Edun said, presently, about three million Nigerians were recipients of the programmes but due to the escalating cost of living, the “government anticipates that an additional 12 million households could qualify for these direct payments.”

“The presidential panel on the social investment programmes have prepared to go to Mr. President with an internal recommendation to restart the direct payments to the poorest and the most vulnerable. Everything is being done to ease the pain,” Edun said.

“We know that there’s been about three million beneficiaries now, but given the way the rates have gone, there are probably another 12 million people, households that can benefit from that payment.”

He further noted that the expansion of the direct cash transfer is projected to reach a wider population who are currently struggling with the economic situation and to put more money directly in the hands of those who need it most, allowing them to prioritise their needs and alleviate poverty.

“The decision to inform the President of the Panel’s decision before the final report is completed is to keep the President abreast of developments,” he said.

“The only thing delaying that is not waiting for the end of the report. It is something that the intervention is meant to happen immediately.

“We have experts in technology, the commitment was to make sure that we use technology to ensure that we have a seamless payment, a seamless movement between the registered and the direct beneficiaries, without any manual processes in between. So it’s taking time to automate that process immediately that direct payment will resume.

“The goal is to put food, to put feed into the mill, into the market, in an attempt to drive down the cost of food and make food available. Right now, that is the key priority in terms of the fiscal side, in terms of the government side.

“History has shown, evidence has shown that when you pay someone directly, you put money in their hand. It reduces poverty because they decide where the shoe is pinching most.

“So it is a direct benefit, it has a direct effect on poverty. It alleviates, and there’s a commitment to immediately start that process. So that is, as far as these interventions are concerned and the landscape which we as a team are facing, we have a commitment to help to bring down inflation.

“Growing the economy, creating jobs and lifting millions and millions of Nigerians out of poverty, that’s the ultimate goal of President Bola Tinubu and his economic policies.”

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Chipata youth calls for stronger media protections amid concerns over media independence

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Alepha Banda, a programmes officer at the Youth Development Foundation (YDF), says Zambia’s existing laws do not adequately safeguard journalists, thereby impeding media freedoms and their ability to report objectively.

Banda also argued that journalists’ lack of economic stability makes them susceptible to manipulation.

In an interview with Zambia Monitor in the Eastern Province, Banda stated the need for the government to develop policies aimed at protecting private media entities and journalists.

“The government should formulate a policy that will protect the private media and journalists,” he said.

Moreover, Banda pointed out that although individuals theoretically possess the freedom to express themselves, this liberty was frequently curtailed by factors such as fear and threats emanating from certain members of the political class.

“Individuals in positions of power have a tendency to interfere with the media, as evidenced by numerous incidents where media outlets have been stormed by individuals affiliated with certain political factions,” he said.

Nevertheless, he noted that there had been instances where the government respected media freedoms.

“At least we have seen some tolerance in some instances, where the government has not taken action that hinders media freedom,” he stated.

Additionally, Banda mentioned that the marginalised were often overlooked both in new media platforms and traditional mainstream media outlets.

“The marginalised are often neglected across television, radio, and newspapers,” he said.

This story is sponsored content from Zambia Monitor’s Project Aliyense.

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Nigeria may need to raise supplementary budget to be able pay minimum wage— IMF

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The International Monetary Fund (IMF) says the Nigerian government may need to raise a supplementary budget to be able to pay the proposed minimum wage increase for workers.

The IMF which gave the advise in its latest staff country report for Nigeria on Monday, said a supplementary budget was necessary because the negotiated amount for the wage increase may surpass the budgeted amount in the original 2024 budget.

“The authorities noted that a supplementary budget may be needed to accommodate the outcome of the ongoing wage structure negotiations which may exceed what they had included in the 2024 budget,” the report said.

“Staff projects a higher fiscal deficit than anticipated in the 2024 budget, but broadly unchanged from 2023. The drivers are lower oil/gas revenue projections, reflecting IMF oil price forecasts but incorporating recent production gains; higher implicit fuel and electricity subsidies; continued suspension of excise measures included in the MTEF; and higher interest costs,” the agency noted.

The report also noted that the government might need to raise the domestic and external borrowing ceilings to prevent fresh borrowings from the apex bank’s Ways and Means.

“Over the medium-term, staff projects consolidation in the non-oil primary deficit. With rising interest costs, government debt stabilises towards the end of the projection period.

“Staff factors in an under-execution of capital expenditure in line with past outcomes and estimates an FGN deficit of 4.5 per cent of GDP relative to the 2024 budget target of 3.4 per cent of GDP.

“For the consolidated government, this implies a projected deficit of 4.7 per cent of GDP in 2024—compared to 4.8 per cent of GDP in 2023 measured from the financing side—which is appropriate given the large social needs and factoring in a realistic pace of revenue mobilisation.

“Based on staff’s projections, the authorities must raise the domestic and external borrowing ceilings to prevent renewed recourse to CBN financing.

“With higher interest rates, banks and nonbanks should have sufficient appetite—as indicated by market sources—conditional on careful management of system liquidity, including a likely reduction in the currently high cash reserve requirement.”

Organised labour in the country has continued to clamour for an increase in the minimum wage for government workers.

Labour leaders have demanded for N615,000 from N30,000 as salaries for lowest ranked workers, while a tripartite committee set up by the government have mulled N70,000 as the new minimum wage.

Despite the government allocating N6.48tn for personnel cost in the 2024 budget, the international lender argues that the amount may be insufficient, which could force the government to come up with a supplementary budget to fund the deficit, the report added.

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