States Seek $500m World Bank Loan to Tackle Poverty
The Federal Government has moved to secure an additional $500 million in financing to upscale the Nigeria Community Action for Resilience and Economic Stimulus (NG-CARES) Programme, following its success in supporting vulnerable Nigerians and small businesses.
Minister of Budget and Economic Planning, Sen Abubakar Atiku Bagudu, disclosed this at a stakeholders’ meeting in Abuja, where he confirmed that the Additional Financing (AF) request was made by the state governments through the Federal Government.
The World Bank Board and the Federal Executive Council (FEC) have approved the facility, and it is now awaiting the National Assembly’s endorsement.
Bagudu told stakeholders — including commissioners of Finance, Budget, and Economic Planning from the 36 states and the Federal Capital Territory (FCT) — that President Bola Tinubu remains committed to improving the livelihoods of poor and vulnerable Nigerians. He said the president’s focus is on ensuring food security and facilitating the recovery of micro and small enterprises (MSEs), in line with the Renewed Hope Agenda.
“President Bola Tinubu’s visionary leadership and Renewed Hope Agenda have created a favourable macroeconomic environment, leading to the proliferation of highly impactful programmes aimed at vulnerable and underprivileged groups,” Bagudu said.
The NG-CARES Programme was initially launched as the Nigeria COVID-19 Action Recovery and Economic Stimulus Programme in June 2021, supported by a $750 million World Bank credit secured through the International Development Association (IDA). The programme has since been renamed and redesigned to provide broader support for communities dealing with the impacts of climate change, civil conflicts, natural disasters, and the long-term effects of the COVID-19 pandemic.
As a Programme-for-Results (PforR), NG-CARES has so far delivered measurable outcomes, reaching over 16 million direct beneficiaries across all states and the FCT. The credit facility has enabled states to implement initiatives aimed at curbing poverty and bolstering local economic activity, particularly for groups facing systemic disadvantage.
Bagudu explained that the stakeholders’ engagement was convened to deepen understanding of the design and operational structure for the upcoming NG-CARES Additional Financing.
He said the meeting was also aimed at fostering collaboration between subnational Ministries of Finance and Budget and Planning to enhance implementation outcomes.
“Sustaining the livelihoods of over 200 million people is crucial to everything we do,” the minister said. “The NG-CARES AF would progressively upscale the successes achieved under the existing programme, foster stronger coordination mechanisms between the federal and state governments, strengthen service delivery platforms at all levels, and accelerate the implementation of programmes to address the current crisis.”
He maintained that Nigeria, as Africa’s largest economy, cannot afford to allow millions to remain in extreme poverty. He added that the NG-CARES Additional Financing would play a pivotal role in confronting these challenges and ensuring continuity in community-based support initiatives.
Bagudu assured that the Federal Government will maintain rigorous oversight and quality assurance across the board. He stated that institutional strengthening and technical support will be provided to state governments through relevant federal agencies. These efforts, he said, would ensure strategic coordination, continuous programme review, and improved results.
According to him, the Tinubu administration is committed to building on the gains already recorded by the NG-CARES Programme and scaling up efforts to cushion the economic effects of ongoing local and global shocks on Nigeria’s most vulnerable populations.
