The Nigerian government has earmarked N350 billion ($700 million) in the 2024 budget for poverty reduction and expanding consumer credit, aiming to lift millions out of hardship and boost economic prosperity.
Of the total, N250 billion will fund the National Poverty Reduction with Growth Strategy, an ambitious 10-year plan launched in 2021 to cut extreme poverty by half. An additional N100 billion has been allocated to a new Consumer Credit Fund, which seeks to increase access to financing for individuals and households.
The poverty strategy intends to reach 100 million Nigerians through interventions in agriculture, infrastructure development, health, education, and social transfers to vulnerable groups. The Buhari administration claimed 1.8 million citizens benefited before the transition of power this past year.
Meanwhile, the consumer credit fund responds to the limited access households currently face to tapping financial resources for purchases big and small. The fund will collaborate closely with agencies like the Central Bank of Nigeria to develop a framework that eases stringent eligibility restrictions.
Curtailing poverty and increasing consumption are dual priorities for the new administration under President Bola Tinubu. Income inequality and deprivation have also been linked to the nation’s ongoing struggles with insecurity and unrest.
However, realising the impact may prove challenging. The World Bank estimates the number of Nigerians living in extreme poverty will rise to 38.8% in 2024, pulled down by meagre growth and rising inflation. Still, officials remain committed to lifting up those most vulnerable through targeted policy action in the near term.