Atiku Bagudu, the minister of Budget and Economic Planning, has hinted that Nigeria still has a whopping 44% representing $329.52 million balance from the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) programme is unutilised.
The Minister who called for rapid access said that the initiative, backed by a $750 million World Bank loan, is designed to alleviate the pandemic’s impact on vulnerable populations and stimulate local economies.
But despite the availability of the fund, a significant portion remains unutilised. 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).
This further prompts the call for immediate action to utilise these funds, especially given their concessionary loan nature with less than a 2% interest rate.
In his words:
“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, highlighted the programme’s flexibility, allowing states to tailor the interventions to their specific needs. The programme’s focus areas include social transfers and livelihood support, agricultural development, and SME assistance.
Furthermore, Abdulkarim Obaje, the National Coordinator of NG-CARES, called for an enhancement of the programme’s structure.
He suggests continuous training, increased funding, and even a name change to “Nigeria Community Action for Recovery and Economic Stimulus (NG-CARES)”.
Obaje underscores the importance of advocacy to improve understanding and performance of the program, particularly in states with poor performance.
He 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.”
In response to the need for faster fund utilisation, the programme’s deadline was extended by a year, moving the closing date to June 30, 2024.
To date, NG-CARES have positively impacted 1,656,731 individuals and 44,196 firms across Nigeria.
This development marks a crucial opportunity for Nigerian states to accelerate their economic recovery efforts by taking full advantage of the NG-CARES programme.
It is an invitation to turn these idle funds into active instruments for mitigating the lingering effects of the pandemic on Nigeria’s most vulnerable communities and sectors.
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