Federal Government Overhauls Cash Transfer Program to Combat Fraud
The Federal Government has announced a major overhaul of its cash transfer program to address fraud, with immediate implementation of direct payments. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed this in an interview on Channels Television.
The adjustment is aimed at fulfilling the President’s commitment to supporting vulnerable groups amid rising food prices. The government has promised direct transfers of N75,000 to 15 million households over three months.
Enhanced verification methods, including the use of National Identification Numbers (NIN), Bank Verification Numbers (BVN), or access to mobile money accounts, will be employed to ensure the integrity of the program and reach the intended beneficiaries.
This overhaul follows suspensions and investigations into alleged misappropriations within the program. Betta Edu was suspended as a humanitarian affairs minister due to the misappropriation of N585 million earmarked for palliative distribution. Additionally, Edu’s predecessor, Sadiya Umar-Farouq, is being investigated by the EFCC for an alleged laundering of N37.1 billion during her tenure.
In addition to the cash transfer program, the government is focused on ensuring access to affordable food for the average Nigerian. Plans include providing an additional 60,000 metric tons of grains for food and feed mills to increase the availability of food in the market.
Another initiative announced by Edun is a N50 billion non-refundable grant to be distributed to at least 1000 artisans, traders, and nano businesses in all 774 local government areas in the country. This grant aims to support small businesses and stimulate economic activity at the grassroots level.
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