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N20,000 monthly transfers can cut poverty, says W’Bank

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The World Bank has said Nigeria could lift up to 13.9 million people out of poverty if it implements a structured N20,000 monthly cash-transfer system targeted at poor households, warning that the country’s current safety-net programmes are too weak and underfunded to deliver meaningful relief.

The Bretton Woods institution delivered the verdict in a new report titled “The State of Social Safety Nets in Nigeria,” obtained by our correspondent on Friday. It urged an increase from the current disbursement of N5,000.

It said Nigeria’s social safety-net programmes are too poorly funded, weakly targeted, and inefficiently executed to deliver meaningful relief to the more than 100 million citizens living in extreme poverty. This comes after the bank revealed that only 44 per cent of total benefits from government-funded safety-net schemes actually reach poor Nigerians.

In its latest assessment, the bank noted that existing interventions “remain too small, too fragmented and too inefficient to move the needle on poverty,” despite the scale of economic hardship confronting millions of citizens.

“At their present scale and design, social protection programmes are simply not adequate to cushion vulnerable families or reverse the rising poverty trend,” the report stated.

It stressed that the combination of high inflation, shrinking household purchasing power, and limited beneficiary reach has weakened the impact of federal welfare spending.

According to the report, simulations show that expanding transfers to N20,000 per month, backed by stronger targeting and increased funding, “could dramatically reduce both the poverty headcount and the depth of deprivation among Nigeria’s poorest households.”

It added that with the right level of investment and a cleaner delivery system, “Nigeria has the potential to lift 13.9 million people out of poverty, more than double what current programmes can achieve.”

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According to the World Bank, simulations using Nigeria Living Standards Survey data show that safety nets could significantly reduce poverty and inequality if spending is increased and benefits reach their intended targets.

The bank examined spending scenarios ranging from N500bn to N2.4tn annually, with benefit levels of N5,000 to N20,000 per household per month. The results were striking. Under a clean, perfectly targeted system with zero leakage, N500bn, roughly Nigeria’s current allocation, could lift 3.3 million people out of poverty and cover nearly 70 per cent of the poor.

With N1.8tn (0.9 per cent of GDP), about 10.6 million Nigerians could be lifted out of poverty, while spending N2.4tn (1.2 per cent of GDP, the LMIC average) could lift 13.9 million people above the poverty line.

The report read, “While the impact of the safety net expenditure in Nigeria is negligible, the low impacts are driven by low and inadequate coverage and inefficient spending. Simulations using the NLSS 2018/19 data show that safety nets can have large impacts on poverty and inequality (measured by the depth of poverty) with larger overall expenditures and with efficient spending going directly to the poor.

“The simulations examine scenarios where the overall expenditures vary from N500bn, a very low scenario comparable to the current allocation, to N2.4tn, an ambitious scenario for Nigeria but one of average expenditures (relative to GDP) in other lower-middle-income countries. The simulations vary in benefit size per household from N5,000 to N20,000 per month. The simulations assume that the budget is spent exclusively on poor people, that is, without any targeting errors, leakage, or administrative and operational costs.

“The coverage is then determined by the data based on the budget and benefit size. Poverty impacts can be very significant even under the relatively low expenditures scenario, when spent efficiently. The simulations show that spending N500bn (about 0.2 per cent of GDP) on the poor, without any inefficiency or leakage, can lift 1.6 per cent (3.3 million people) out of poverty and cover close to 70 per cent of the poor. With higher levels of expenditure on the poor, especially expenditures exceeding N1.8tn (0.9 per cent of GDP), 5 per cent (or 10.6 million people) can be lifted out of poverty. With the lower-middle-income country average expenditures of 1.2 per cent of GDP (N2.4tn) on the poor, Nigeria can lift 13.9 million people out of poverty.”

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The bank urged the Federal Government to treat safety-net spending as an investment rather than a temporary palliative. “Scaling up cash transfers, particularly towards the N20,000 benchmark, represents one of the most efficient paths to reducing poverty in Nigeria,” it said, adding that wider coverage, not just higher benefit levels, would ensure more equitable relief for the millions living just below the poverty line.

It noted that while several interventions exist on paper, the impact of Nigeria’s welfare spending “remains negligible,” largely because too few poor households are covered and too much of the current funding leaks to non-poor beneficiaries. The bank urged Nigeria to prioritise wider coverage instead of concentrating large benefits on fewer households.

Its analysis shows that spreading N1tn across all poor households, even with smaller benefits, would lift about six million people out of poverty, compared to 5.8 million if the same amount were spent as N20,000 monthly transfers targeted at only one-third of poor households.

The broader coverage also reduces the depth of poverty more effectively, particularly for the millions of citizens just below the poverty line, who need only minimal support to cross it. The World Bank found that the poorest households, those far below the poverty line, remain untouched even by higher transfer amounts.

Under a perfect targeting system, N1tn spent on the poorest third would reduce poverty severity by 1.5 percentage points, nearly double the impact of randomly distributed transfers, but would have almost zero effect on headcount poverty because the poorest are too deep in deprivation to be lifted out with modest transfers.

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Earlier, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the Federal Government plans to deliver digital cash transfers to 15 million households, estimated at 70 million Nigerians. He said 8.5 million households had already received at least one round of the N25,000 grant, with payments to the remaining 6.5 million expected before the end of the year.

Edun described the intervention as a cornerstone of the government’s strategy to cushion the impact of inflation and subsidy removal, but the World Bank report suggests the programme’s short duration and funding limits may not deliver long-term poverty reduction.

The World Bank concluded that Nigeria’s current safety-net architecture is incapable of driving the government’s poverty-eradication ambition unless urgent reforms are made.

It recommended three immediate steps, “Increase overall spending on safety nets, treating them as investments, not handouts, Expand coverage to reach more of the 100 million extremely poor Nigerians, Improve targeting and raise benefit levels to ensure transfers make a measurable impact.

“Nigeria’s safety nets, at their current funding level and implementation pattern, are too small, too narrow, and too diluted to meaningfully reduce extreme poverty,” the report declared.

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Without Ooni’s Intervention, Refinery Couldn’t Have Been Built — Dangote

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Businessman and President of Dangote Group, Aliko Dangote, has credited the Ooni of Ife, Oba Adeyeye Ogunwusi, with making the construction of his multi-billion-dollar refinery possible by intervening to remove 19 shrines from the project site.

Speaking in a video shared by The Cable via X on Friday, the billionaire industrialist revealed that construction workers were unable to proceed with the project in Ibeju-Lekki, Lagos, due to the presence of numerous shrines.

Dangote said, “I must recognise and thank the Ooni of Ife for enabling the building of our factory. What happened was that when we got there, there were over 19 shrines at the site. Nobody was able to go near there to do anything.”

The business mogul explained that the traditional ruler personally visited the site and boldly ordered the removal of all the shrines, despite the spiritual implications.

“But Ooni went there, stood there and said ‘remove all of them. Let the gods come and talk to me’. Your Royal Majesty, I want to thank you from the bottom of my heart because without that singular act of yours, I don’t think we would have been able to build the refinery,” Dangote stated.

PUNCH Online reports that the Dangote Refinery, located in the Dangote Industries Free Zone in Ibeju-Lekki, is the world’s largest single-train refinery with a capacity of 650,000 barrels per day.

The industrialist had earlier disclosed that he paid $100 million to the Lagos State Government for the massive land, but construction faced significant delays due to community issues surrounding the shrines.

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The refinery, which began operations in 2024, is expected to transform Nigeria’s petroleum sector by ending decades of fuel importation and creating thousands of jobs for Nigerians.

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CBN delists non-compliant BDCs

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The Central Bank of Nigeria has announced that all legacy Bureau De Change operators who failed to meet its new licensing requirements by 30 November 2025 have automatically lost their licences, effectively ceasing to operate as BDCs in the country.

This was disclosed in a Frequently Asked Questions document on the current reform of the bureau de change, published on Tuesday on the CBN website.

The PUNCH reported that the CBN confirmed on Monday that only 82 Bureaux De Change have been licensed to operate, having met its new guidelines.

The development follows an extended compliance window granted by the apex bank. Under the revised BDC Guidelines, existing operators were initially given six months, from 3 June to 3 December 2024, to satisfy the new regulatory conditions. The CBN later granted an additional six-month extension, which elapsed on 3 June 2025, to allow more operators to align with the updated standards.

According to the document, the CBN has now enforced the final cutoff, declaring that any BDC that did not meet the requirements by the end of November is no longer recognised.

“The Guidelines provided a transition timeline of six months from the effective date, 3 June 2024, with a deadline of 3 December 2024, for all existing BDCs to meet the requirement of the new Guidelines or lose their licence(s). However, the management of the CBN graciously extended this deadline by another six months, which ended 3 June 2025, to give ample time for as many legacy BDCs desirous of meeting the new requirements to do so.

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Consequently, any legacy BDC that failed to meet the requirements of the new Guidelines as of 30 November 2025 has ceased to be a BDC, as its licence no longer exists. Please visit the CBN website for the updated list of existing BDCs in Nigeria,” the apex bank said.

The CBN added that it would continue to receive applications on its Licensing, Approval and Requests Portal from prospective promoters, and those that meet the criteria will be considered for a licence. However, the CBN reserves the right to discontinue the licensing of BDCs at any time.

The new measures form part of broader efforts by the CBN to strengthen transparency, compliance, and stability within Nigeria’s foreign exchange market.

The new CBN regulatory framework for BDCs, introduced in February 2024, mandated BDC operators to meet higher capital requirements. Tier-1 operators are required to meet a minimum capital requirement of N2bn, while Tier-2 operators must meet N500m as MCR.

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NNPC sets 36-year oil production record at 355,000bpd

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The Nigerian National Petroleum Company’s upstream subsidiary, NNPC Exploration and Production Limited, has recorded its highest daily crude oil production in more than three decades, hitting 355,000 barrels per day on December 1, 2025.

The milestone, confirmed in a statement issued on Tuesday by NNPC Limited’s Chief Corporate Communications Officer, Andy Odeh, marks the company’s biggest output since 1989 and signals renewed momentum in Nigeria’s upstream recovery efforts.

According to the statement, NNPC E&P Limited’s average daily output has surged by 52 per cent in just two years, rising from 203,000 barrels per day in 2023 to 312,000 barrels per day in 2025, a performance the company attributed to strengthened operational systems, disciplined asset management and structured field development.

“On December 1st, 2025, NNPC E&P Limited, the flagship upstream subsidiary of NNPC Limited, achieved a record production level of 355,000 barrels of oil per day, its highest daily output since 1989. The milestone marks a significant step forward for Nigeria’s upstream sector and reflects the company’s ongoing transformation anchored on efficiency and discipline.

“The figures show genuine transformation: average daily production surged 52 per cent, rising from 203,000 barrels per day in 2023 to 312,000 in 2025.

“This record growth is no coincidence; it stems from a clear strategy anchored on operational excellence, strong asset management, and structured field development,” the statement said, stressing that the achievement reflects a “genuine transformation” underway within the company.

Commenting on the achievement, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, described the accomplishment as fresh evidence that Nigeria’s energy revival “is not a dream but already happening.”

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Ojulari noted that by exceeding its own production benchmarks, NNPC E&P has demonstrated that the essential building blocks needed to scale national output are being firmly established.

“By showing its ability to exceed its own production benchmarks, NEPL confirms that the essential building blocks for scaling national output are being firmly established. The achievement signals that the machinery of production, equipment, processes, capabilities, and partnerships can be driven with commercial discipline to produce real and positive outcomes.

“The achievement converts national ambition into measurable momentum. The presidential targets of two million barrels per day by 2027 and three million by 2030 have often appeared aspirational. NEPLs’ delivery brings them closer to reality,” he added.

Ojulari said the accomplishment boosts investor confidence and reassures global partners that Nigeria remains committed to reclaiming its place as a stable, dependable crude supplier.

The Executive Vice President, Upstream, Udy Ntia, said the milestone represents more than a production figure, stressing that NEPL’s growth is anchored on responsible and sustainable operations.

“In a sector where shortcuts can yield short-term wins but long-term damage, NEPL is making a different point: sustainable progress must rest on responsible operations. This ensures that scaling production does not compromise worker safety, community wellbeing, or environmental protection. It reinforces a shift away from extraction at any cost towards sustainable value creation, a core requirement for any modern energy company seeking global relevance,” Ntia said.

According to him, the company’s approach ensures that scaling output does not undermine worker safety, environmental protection or community wellbeing.

Similarly, the Managing Director of NNPC E&P Limited, Nicolas Foucart, said the new production record reflects the broader transformation sweeping through NNPC Limited.

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“This is a story shaped by leadership that charts a clear course; by partnerships built on alignment and accountability; and by a workforce whose hard work is turning goals into measurable progress. Our people, our processes, and principles are the real engines behind this success. We are building for tomorrow, not just celebrating today,” Foucart noted.

He added that the gains translate into increased national revenue, stronger energy security and a more resilient economic foundation.

“For Nigerians, this accomplishment means far more than increased barrels; it translates into greater national revenue, stronger energy security, and a more resilient economic foundation. NEPL has not only produced more hydrocarbons; it has reignited belief in what Nigeria’s energy sector can achieve with the right systems, culture, and dedication.”

Nigeria’s crude oil sector has struggled over the past decade, with output frequently dropping below OPEC quotas due to pipeline vandalism, crude theft, underinvestment, deferred maintenance and declining performance of mature fields.

At several points between 2021 and 2023, the country’s production fell to multi-decade lows, raising concerns about revenue losses and the long-term viability of the industry.

Reforms under the Petroleum Industry Act, the unbundling of NNPC into a commercial entity and renewed upstream interventions have aimed to reverse the decline.

President Bola Tinubu’s administration has set ambitious production targets of two million barrels per day by 2027 and three million barrels per day by 2030, goals industry players previously considered optimistic.

NNPC E&P Limited, a wholly-owned subsidiary responsible for several joint venture and production-sharing assets, has been positioned as a critical driver of this revival. The company has implemented field optimisation strategies, renewed contractor alignment, strengthened governance structures and ramped up previously underperforming assets.

See also  PHOTOS: Blue Band Margarine Advertisement in Nigeria, circa 1966

The latest 355,000 bpd performance, the company’s highest since 1989, is a significant step toward stabilising national output and rebuilding investor confidence in Nigeria’s oil industry.

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