World Bank faults gaps in FG’s N658.9bn cash transfers to poor households

The World Bank has urged the Federal Government and state governments to establish a sustainable social protection system with dedicated budgetary allocations, warning that cash transfers to poor households will have limited impact without adequate payments and consistent disbursements.

The call came after the Federal Government reported spending N658.9bn on direct cash transfers 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 acknowledged the reported progress but said the programme needed wider coverage, sufficient payments and regular disbursements to improve household welfare.

According to the report, the Federal Government used biometric and digital verification systems to identify beneficiaries and deliver payments under the programme.

However, the bank said reaching millions of households was not enough without a system capable of providing predictable and sustained assistance to vulnerable Nigerians.

“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.

It urged the government to accelerate implementation and strengthen the programme to ensure that cash transfers provide more meaningful relief to households struggling with economic hardship.

“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,” the bank added.

The World Bank also called for a shift from emergency assistance towards a long-term social protection framework supported by sustainable government funding.

“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,” it stated.

The recommendation places responsibility on state governments to complement federal interventions through their own budgetary commitments, rather than leaving the burden of supporting vulnerable households largely to the Federal Government.

The bank argued that dedicated allocations in federal and state budgets would help ensure more predictable funding and reduce reliance on temporary relief measures.

It also stressed the need for coordinated action between both levels of government to improve the delivery and monitoring of social assistance.

The report noted that effective social protection and public service delivery remained important tools for cushioning households against economic pressures, but their success would depend on the consistency and adequacy of support.

The World Bank said a coordinated, sustainably funded system would help broaden the reach of social assistance and strengthen its contribution to the welfare of poor and vulnerable Nigerians.