The Nigerian government announced on Monday its intention to provide a monthly stipend to unemployed young people as a measure to alleviate economic hardship.
Wale Edun, the Minister for Economy, revealed this decision after the weekly federal executive council meeting chaired by President Bola Tinubu in Abuja.
According to Edun, President Tinubu approved the implementation of a Social Security unemployment program to boost the purchasing power of the poorest Nigerians, particularly the youth and unemployed graduates.
However, specific details such as the amount of the stipend, commencement date, and duration of implementation were not disclosed.
This intervention comes in response to recent data from the National Bureau of Statistics (NBS), which reported a rise in Nigeria’s annual inflation rate to 29.90% in January 2024, compared to 28.92% in December 2023.
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The NBS attributed the increase in food inflation to rising prices of essential commodities like bread, cereals, potatoes, yam, oil, fat, fish, meat, fruit, coffee, tea, and cocoa.
In light of these economic challenges, the government aims to introduce an “unemployment benefit” for young unemployed Nigerians, despite the December 2023 NBS report indicating a 5% increase in the country’s unemployment rate.
President Tinubu’s decision to remove petrol subsidies has drawn both praise and criticism, with the World Bank commending the move while many Nigerians grapple with worsening economic conditions and deepening poverty.
In addition to the monthly stipend, the government plans to introduce a social consumer credit program to make goods more affordable and stimulate economic revival. Other social investment programs include providing N25,000 to 12 million households and implementing a nationwide school feeding initiative for poor children.
