APPENDIX 2CONDITIONAL CASH TRANSFER SCHEMEAN OVER-VIEW OF EFFORTS TOWARDS ATTAINMENT OF GOAL 1(HALVING THE PERCENTAGE OF EXTREME POOR AND REDUCTION INHUNGER) IN NIGERIAINTRODUCTION:Nigeria, which was one of the richest 50 countries in the early 1970s, has retrogressedto become one of the 25 poorest countries at the threshold of the twenty first century. Itis ironic that Nigeria is the sixth largest exporter of oil and at the same time host thethird largest number of poor people after China and India. Statistics show that theincidence of poverty using the rate of US $1 per day increased from 28.1 percent in1980 to 46.3 percent in 1985 and declined to 42.7 percent in 1992 but increased againto 65.6 percent in 1996. The incidence increased to 69.2 percent in 1997. The 2004report by the national Planning Commission indicates that poverty has decreased to54.4 percent. Nigeria fares very poorly in all development indices. According to themost recent statistics from the National Bureau of Statistics Report on “NigeriaPoverty Profile 2010”, 60.9 percent of Nigerians in 2010 were living in absolutepoverty as against 54.7 percent in 2004.The problem of poverty and how to reduce it remains the most pressing challenge inthe international development debate. Poverty is said to be multi-dimensional,consequent on the fact that it can be as a result lack of Technology, Lack of Education,Lack of adequate health services, Inability of the growth to provide decent jobs,inadequate data on the nature, sources and causes of poverty including its intensity andspread. It can also be attributed to lack of the much needed synergy by the differentarms of Government in addressing poverty.The above statistics portrays that despite various poverty alleviation initiatives bysuccessive administrations, the level of social impacts of these initiatives leaves muchto be desired. Over the years, poverty alleviation has been an integral component of
APPENDIX 2Nigeria’s development plan and specialized agencies were established to promote theobjective of poverty reduction. It is important to highlight that all the 8 MDGs Goalsare primarily geared toward tackling issues of poverty, deprivation and hunger.The OSSAP-MDGs was set up to assist Nigerians to meet the 8 MDGs Goals.Contingent upon the multi dimensional nature of poverty there is need to provideadditional investment in Health, Water and Sanitation, Education, Agriculture etc inother to stem poverty in Nigeria. This led to the creation of the Office of the SeniorSpecial Assistant to the President on MDG’s. Since its creation, the office hadconcentrated its efforts towards the provision additional funding to critical sectors thatcould help Nigeria meet the MDGs. There were additional investmentsin Health,education, provision of water and sanitation and in the areas of Social Safety Net.SOCIAL SAFETY NET:It is in response to this, that federal government through the MDGs introduced a newinnovation in the fight against poverty and the subsequent attainment of Goal 1 thatlead the Federal Government to introduce the Social Safety Net in 2007 with anappropriation of N10billion. The initiative entails a non-contributory transfer programsseeking to prevent the poor or those vulnerable to shocks and poverty from fallingbelow a certain poverty level. Safety net programs can be provided by the public sectorThe Social Safety Net Scheme as implemented by the National Poverty EradicationProgramme, (NAPEP) comprises the scaling up of ongoing Schemes for theempowerment of economically active women, farmers and youths.The Social Safety Net (SSN) as deployed by the federal government at its inceptionencompasses the following:Conditional Cash Transfer (CCT);Support for Youth Empowerment through the provision of Keke NAPEPin 2007;
APPENDIX 2Support for Micro Credit the in 2007Conditional Cash Transfer (CCT). The Conditional Cash Transfer entails the provisionof grants to targeted poor households on the condition of investment in human capitaldevelopment and it consists of two main components of payment: the Basic IncomeGuarantee (BIG) and the Poverty Reduction Accelerator Investment (PRAI).The implementation of the CCT in the country since its inception in 2007 to date haswitnessed several innovations towards its improvement. The CCT now is beenimplemented under the CGS platform. This has brought tremendous increase in statesbuy-in and has led to, not only increase in funds available to the programme throughthe payment of matching grants by the states, but, has also created greater chance forthe sustenance of the scheme. The scheme is presently encouraging flexibility in theimplementation as opposed to the rigid centrally controlled CCT in order to encouragestates to modify conditionalities to suit their desire to meet the MDGs. a state mayplace health, education, nutrition or ante natal care visit for pregnant as itsconditionalities to assess the funds.OBJECTIVE OF THE CCT:The objective of the CCT Scheme is to improve the effectiveness of conditional cashtransfer mechanisms to provide adequate incentives for extremely poor families to useavailable education and health services for children and pregnant women whileincreasing household consumption.SCALING UP OF CCT FOR ATTAINMENT OF GOAL 1 AND MDGS 2015:
APPENDIX 2It is imperative to highlight that on inception of CCT in 2007, the scheme wasdeployedthrough NAPEP and was piloted in 12 states. This was subsequently scaled upto 36 states in 2008. This method centrally coordinated CCT implemtation had itschallengessuch as:Low buy-in by the states and local governments. They viewed the scheme asa federal intervention which does not need their spport;Inadequate funding mechanism due to lack of matching grants from stateand local government;Ownership and Sustainability of the scheme through NAPEP was lacking.This was what informed the switch in strategies and led to the implementing of CCTunder a more successful intervention, the Conditional Grants Scheme(CGS). In the2009 3 pilot States of; Jigawa, Cross-River and FCT were selected for theimplementation of the scheme. The successes recorded in this method led to thescaling-up of the scheme to 10 states in 2011 and under the 2012 round of theConditional Grants Scheme to State an impressive 24 states were selected toimplement the CCT with a total of N5billion as the Federal portion of funds to the 24benefitting state, with a matching grants of N5 billion from implementing states. Oncompletion of the 2012 round of the CCT under the Conditional Grants Scheme a total56000 households would have benefitted and this would greatly affect the economiclandscape of the implementing States.It is important to note that Office of the Senior Special Assistant to the President onMDGs is projecting that by 2013 all the 36 states of the federal including FCT wouldbe benefitting from the Conditional Cash Transfer under the Conditional GrantsScheme. This mile stonewill immensely go-along- way to reduce poverty and socialexclusion currently evident in many parts of the country.OTHER INTERVENTIONS TO REDUCE POVERTY:
APPENDIX 2Other germane interventions were also initiated by OSSAP-MDGs to tackle Goal 1such as:OSSAP-MDGs collaborating with the Federal Ministry of Agriculture toCreating value chain for cassava other agricultural produce geared towardswealth creation and employment generation with budget of N5billion.In addition, the CCT programme exist strategy is to provide an addition sumof N100,000 cash grant to each of the participating households. This sum isexpected to be channeled into small scale farming enterprise of eachhousehold. Households will be supported to invest in poultry, fishery,backyard vegetable production etc in order to add to the Nations foodsecurity, create wealth and reduce hunger.THE NEW IMPROVED CONDITIONAL CASH TRANSFER(CCT)Having Spearheaded the introduction of CCT in Nigeria since 2007, and having knownfully our strength and challenges as a nation in its implementation, the Office of theSenor Special Assistant to the President on MDGs decided to review the process ofCCT implementation in Nigeria to increase its outreach sustainability and to plug-in allleakages in the pro-poor Social Safety Nets. The following measures were introducedthus;State Buy-in:Hence forth, State and Local Government shall be empowered under ourCGS platform to implement CCT. This is expected to create flexibility theco-responsibility of the households state can implement CCT on educationor Health.
APPENDIX 2E-transfer System through Mobile Payment:The use of paymasters is now abolished. This is to eliminate cases of non-payment or short payment, delay in payment or short payment report insome States. Hence forth all payment is to be done through e-mobilebanking services. We are collaborating with EcoBank to make a successof this e-transfer system. On our part, we have procured 56000 cell-phoneto these to extreme poor 56000 households to make a success of theprogramme.E-registration of Participating Households:One of the key success area of any CCT is the targeting of beneficiaries inline with international best practices. Targeting or selection of householdsis not complete if the selected household is not enrolled. Over time, wehave discovered that manual registration is fraught with problems ofidentification during payment. In order to address this, we introduced e-registration of participating households using a bio-snap e-registrationmechanism. Through this method, each selected householdsis now beenregistered electronically to ensure that adequate baseline data of eachhousehold is kept for subsequent evaluation.Poverty Mapping:It is widely accepted among development partners in Nigeria and beyondthat one of the major challenges facing us as a country and many thirdworld countries is the absence of or inadequate data for efficientallocation of scarce resources for development.Successive governments have attempted to address issues of poverty,deprivation and hunger with little or no success. Poverty alleviationefforts weremarred by inadequate statistics on the nature, spread, severityand causes of poverty in each of the local government or ward where thepoverty reside. It is in response to this and our strong desire to channel the
APPENDIX 2nation resources to where and how it is needed most, that lead MDG’s toinvestment Poverty Mapping. This Poverty Mapping is a more drilleddown statistics of poverty in each state, local government andcommunities. This Alas of poverty is constantly been used to allocateMDGs resources in order to obtain maximum impact.ADVOCACY AND LAUNCH OF CONDITIONAL CASH TRANSFER BYSSAP-MDGsThe Senior Special Assistant to the President on MDGs in her effort to fast-track theprocess towards the attainment of Goal 1, initiated an Advocacy, Sensitization andFlag-off Visits to the 24 Statesin the Federal including FCT. This initiative wasgermane, contingentupon the slow pace toward halving extreme poverty by 2015.These visits afforded the SSAP the platform to share experiences on best practices,flag-off the programme and also motivate the states to fast-track implementationprocesses.SSAP FLAG-OFF CEREMONY OF CONDITIONAL CASH TRANSFER INSOKOTO STATE
APPENDIX 2SUCESSS STORIESThe CCT implementation towards attaining Goal 1 though still gaining momentum,has been able to prevent over 100,000 basic school aged children from dropping out ofschool. The project has also supported the utilization of basic health serviceinfrastructure in the rural areas by adding a health component to the conditionalities forchildren of under-five to access basic health service of immunization, vaccinationbefore household receive cash transfers.
APPENDIX 2Indigent beneficiaries especiallywidows and the aged through Conditional CashTransfer programme have been able to realize the dreams of sending their childrenback to school, have access to primary health care, paid steepens at the month for theupkeep of the family for a period of one year and also receive an accumulated savingsinvestment at the end of the year.NOTABLE ACHIEVEMENTS IN 2012:The 2012 MDGs CCT program is supporting 24 states across the six geopolitical zonesof Nigeria. The criteria for states to be eligible to participate in the operation include:(i) state ownership and funding of current and related programs; (ii) the level ofpoverty using HCDI index; and (iii) geographical spread. The states are:Ebonyi,Enugu, Anambra, Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Oyo, Osun, Ogun, Ekiti,FCT, Niger, Plateau, Kwara, Kebbi, Jigawa, Sokoto, Kano, Borno, Bauchi, Yobe, andAdamawa.It is also pertinent to highlight that:
APPENDIX 2A total of 600 (six hundred) communities are benefiting from theprogramme (25 communities per state);A total of 5 billion has extended to states for this program (90% directproject fund and 10% coordination)A total of 56, 250, 000 Households is benefiting from the MDGs CCTCash transfer in the 24 states across the geopolitical zones;24 CCT Operational accounts have been opened and the funds, N187,500, 000.00 needed for the take off of the CCT in the 24 states have beencredited with Eco Bank; andA CCT database server, containing all beneficiaries’ baseline informationis housed in the MDGs CCT server room.Most of the participating stateshave provided their matching grants of N187, 500,000.00.