By Ahmed Ahmed
Economists have welcomed the federal government’s launch of a $1 billion social protection programme, describing it as a timely intervention that could cushion economic hardship, reduce poverty and move vulnerable Nigerians towards sustainable economic empowerment.
The experts, who spoke in separate interviews with the News Agency of Nigeria (NAN) in Lagos recently, said the initiative could provide a critical bridge for households struggling with the rising cost of living while creating opportunities for entrepreneurship and self-reliance.
The federal government launched the Household Prosperity and Empowerment Social Protection Project (HOPE-SP) recently at the State House Banquet Hall in Abuja. The programme is designed to shift vulnerable Nigerians from temporary relief towards sustainable economic empowerment.
The launch formed part of a broader set of five programmes aimed at strengthening Nigeria’s humanitarian response and poverty reduction framework.
Former Executive Secretary of the Chartered Institute of Bankers of Nigeria, Dr. Uju Ogubunka, described the initiative as commendable, particularly against the backdrop of persistent cost-of-living pressures facing households.
“The programme launch is commendable, particularly now that a lot of our people are grappling with economic hardship caused by the cost-of-living crisis,” he said.
Dr. Ogubunka, however, stressed that the success of the intervention would depend largely on effective targeting and accurate beneficiary data.
He called for the initiative to be replicated by sub-national governments, arguing that stronger coordination at the grassroots level would expand its reach and impact.
“This policy should also be replicated by sub national governments to bring more benefits to the grassroots,” he said.
According to him, previous government interventions have sometimes struggled to reach the people they were designed to support because of weaknesses in data and beneficiary identification.
“Previous experiences have shown that without adequate data, government efforts do not really get to the targeted people who need such support for their livelihoods,” Dr. Ogubunka said.
He noted that ensuring that assistance reaches the right beneficiaries would be particularly important in an economy where many young Nigerians are attempting to establish businesses and create livelihoods.
Also, Dr. Muda Yusuf, the Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), commended the federal government for the intervention, particularly its potential to support entrepreneurship.
Dr. Yusuf said high borrowing costs and expensive digital lending platforms had made it difficult for many Nigerians to access capital to establish or expand small businesses.
“We need to support our citizenry to get out of poverty and create businesses because bank interest rates are expensive and loan apps are too exorbitant,” he said.
He argued that government-backed interventions could provide an important source of support for small businesses, given their contribution to economic activity, employment and household incomes.
“But this government intervention will go a long way, considering the role small businesses play in the general economy,” Dr. Yusuf stated.
Beyond direct financial assistance, Dr. Yusuf urged the government to sustain investment in critical infrastructure, particularly electricity, as part of a broader strategy for economic empowerment.
He said reliable electricity would reduce some of the operating constraints confronting young entrepreneurs and create an environment in which innovation and wealth creation could thrive.
“Government investment in regular electricity will encourage the youth to be more innovative and create wealth,” he said.
The economists’ comments highlight an important distinction in the government’s social protection approach: providing immediate relief while creating pathways for beneficiaries to become economically productive.
For the intervention to achieve that objective, however, effective implementation will be critical. Accurate data, transparent beneficiary selection and coordination between federal and sub-national authorities will determine whether resources reach the households and entrepreneurs most in need.
