World Bank urges FG, states to sustain N658.9bn cash transfer scheme
The World Bank has urged the Federal and State Governments to strengthen Nigeria’s social protection system with regular funding, wider coverage and consistent cash transfers.
The call comes after the Federal Government disbursed N658.9 billion to 10.46 million poor and vulnerable households as of September 2026.
In its latest Nigeria Development Update titled “Beyond the Federal Purse: How Higher Revenues Shaped State Priorities,” the Bank said while the disbursement marked progress, its impact on household welfare will depend on reaching more people, increasing the amount paid, and ensuring payments are regular.
According to the report, government used biometric and digital verification systems to identify beneficiaries and deliver payments.
“Social protection and service delivery can help cushion households against these pressures, though their effectiveness will continue to depend on coverage, adequacy, and continuity,” the report stated.
The Bank called for faster implementation and improvements in the reach, value and consistency of the transfers.
“These efforts need to be accelerated and deepened, with continued progress on coverage, adequacy, and consistency of transfers necessary to broaden and strengthen their contribution to household welfare,” it said.
It urged Nigeria to move from emergency interventions to a sustainable system that provides predictable support to poor and vulnerable households.
“Building on this progress, the next step is to move from an emergency response toward a regular, sustainable social protection system, with dedicated budget lines at the federal and state levels, gradually increasing financing from government resources, and a shared overarching vision,” the report stated.
The recommendation places responsibility on state governments to complement federal efforts with their own budgetary allocations.
The Bank said a sustainable funding framework would reduce dependence on temporary palliatives and ensure cash transfers are maintained over time.
It added that beyond funding, the effectiveness of the programme will depend on how well it is designed and targeted to reach households most in need, noting that limited productive opportunities, gaps in school readiness and weak learning outcomes remain challenges to poverty reduction(Guardian)
