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NSIO clears Osinbajo from financial scandal

We have a clear pathway for power sector reform —Osinbajo

The National Social Investment Office (NSIO) on Wednesday cleared the Vice- President Yemi Osinbajo from financial scandal relating to disbursement of funds for the National Social Investment Programmes (N-SIPs)

A statement by the organisation’s Communications Manager, Justice Bibiye, stated that the Ministry of Budget and National Planning was in charge of all assignment relating to financing, budgeting, procurement and disbursement of funds allocated and released for the N-SIPs.

The statement explained that N-SIPs, which involves four broad programmes (N-Power, Conditional Cash Transfers, National Home-Grown School Feeding and Government Enterprise and Empowerment Programmes), planned towards different subgroups of Nigerians for empowerment.

It also said that the Steering Committee for the NSIO, chaired by the Vice President, supervises the implementation of the SIP.

“The Steering Committee comprises 9 Ministers, including that of Finance; Education; Health; Agriculture, Trade and Investment, Youth and Sports, Women Affairs; Labour and Productivity; Information; with the Ministry of Budget and National Planning as the Secretariat. The Steering Committee meets regularly for updates, to review, advise, guide and approve the processes of the N-SIPs”, the statement said.

It continued that “The NSIO has continued to prioritize transparency in disbursements. It has also ensured a level-playing field for all the beneficiaries, collated data and verified identities of beneficiaries of the different schemes, through a close collaboration with relevant agencies of government.

“All payments on the programmes are transferred directly to beneficiaries from the Federal Government coffers. The only exception is in relation to the cash transfer programme, basically because the beneficiaries reside in areas where there is a dearth of banking infrastructure. Being much too poor to travel long distances to receive the monthly N5,000 disbursements, the decision was taken to ensure the funds are conveyed to them at their places of residence.

“Furthermore, in departure from past experiences in similar programmes, whereby beneficiaries were selected in an opaque manner, this Administration’s Cash Transfer (CCT) beneficiaries are identified by members of the communities themselves, through a tripartite method, which includes technology, for objectively and scale. At commencement, geographical poverty mapping is utilized to determine the sequence of LGAs to commence work and spread from, after which the World Bank community-based targeting process was adopted to assure of community ownership of the process.

“Trained and equipped State and LGA enumerators then collate the requisite information of all the identified households on android devices. Finally, a proxy means test is applied to the data of the households on the devices, to rank them in relation to their poverty status. This carefully collated data is cleaned up and hosted on a State Social Register, all of which State Registers combined, constitute the National Social Register. Caregivers in each of the identified households are then enrolled for payment. All of the cash transfer beneficiaries that are paid by the National Cash Transfer Office (NSTO) are mined from the NSR. Because the beneficiaries reside in locations where there is a dearth of banking infrastructure, payment is made through mobile money agents that have been procured in an open and transparent process. To preclude fraud since payment is effected in cash (at least until there are fixed location agents in those communities), every mobile money agent must have a backend technology platform that enables the visualization of transparent disbursements and timely reconciliation, by the Federal office.

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“For the other NSIO programmes, such as the N-Power and the National Home-Grown School Feeding, payments are made directly into the accounts of the youth and the cooks, through accounts held by them, having initially been verified by the NIBSS as a pre-requisite of enrollment into the programmes.

It was also added that “Under the Government Enterprise and Empowerment Programme (GEEP) which provides collateral and interest-free financial support to businesses at the bottom of the financial pyramid, the payment process is also transparent. GEEP is being managed by the Bank of Industry (BOI) since the NSIO has deliberately retained a lean team, being a coordinating office. Moreover, the BOI has offices around the country, with accredited agents to support the collection of repayments.

“For GEEP schemes such as Market Moni and FarmerMoni, the loans are paid to the beneficiaries who must belong to a registered cooperative or association and have opened bank accounts linked to a BVN. Consequently, the loans are easily paid directly to their accounts, once they meet the criteria.

“For TraderMoni of N10,000 loans to petty traders, enumeration is done in the open markets and wherever the traders ply their trade. While BVN is not required for the first level of N10,000 loans, the criteria include having a phone, a verifiable place of trade (e.g. kiosk, table-top, spot) and the interest to apply for the loan. The registered traders are then processed for the N10,000 loan disbursement. Upon repayment within 6 months, the beneficiary becomes eligible for a larger amount of N15,000 and incrementally, all the way to N100,000 if and when the collateral-free loans are repaid within the designated time frame. It is at the 2nd stage, where the applicant indicates the interest to apply for a larger loan amount, that it becomes necessary for the applicant to open a bank account with a BVN.

“Important to mention, also, is that the N-SIPs have also been monitored by an umbrella of non-government organisations (NGOs) and Civil Society Organisations (CSOs) which have all adjudged the processes to be transparent.

“Organisations like Action Aid (Nigeria), the Africa Network for Environment and Economic Justice (ANEEJ), and the Nigerian Economic Summit Group (NESG), working with Accenture and the Busara Centre for Behavioral Sciences – have either monitored or evaluated the progress of the programmes. These entities continue to commend the NSIPs for meeting the urgent needs of Nigerians in different areas including providing employment, supporting small businesses and in poverty alleviation.

“According to its 2018 Third-party Monitoring Report, Action Aid noted that the Social Investment Programmes, despite the challenges encountered, are effective and relevant in the States because their expected outcomes have been achieved.

Commending the openness and transparency entrenched in the process of disbursements, the Senior Adviser, Department for International Development (DFID)-UK, Sonia Warner, said ANEEJ played a pivotal role in the Monitoring of Recovered Assets in Nigeria with Transparency and Accountability (MANTRA) Project to monitor US$322.5 million returned to Nigeria from Switzerland. Findings from ANEEJ, the umbrella body of the coalition of Independent Civil Society Organisations monitoring the use of returned $322 million Abacha Loot on cash transfers to the poorest of the poor confirm that the money is being disbursed to poor Nigerians, with the desired impact.

Warner noted that she “feels a strong sense of achievement being part of an intervention which has demonstrated that it is possible to retrieve stolen money and use it to support the victims of corruption in Nigeria.”

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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