The Federal Government has disbursed N658.9bn in direct cash transfers to 10.46 million poor and vulnerable households as of September 2026, but the World Bank has urged the authorities to strengthen the programme through wider coverage, adequate payments and consistent disbursements.
The bank said the government needed to build on the reported progress by establishing a sustainable social protection system that would provide regular support to vulnerable Nigerians rather than relying primarily on emergency interventions.
The recommendation was contained in the latest Nigeria Development Update, titled ‘Beyond the Federal Purse: How Higher Revenues Shaped State Priorities’, analysed on Sunday, which examined economic conditions and the role of government interventions in cushioning households against financial hardship.
According to the report, the Federal Government used biometric and digital verification systems to identify beneficiaries and deliver payments under its direct cash transfer programme.
The World Bank said social protection and effective public service delivery could help protect households from the effects of economic pressures, but warned that the impact of such interventions would depend on the number of people reached, the adequacy of the assistance and the regularity of 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.
It noted that although the N658.9bn disbursement had reached millions of vulnerable households, the programme needed to be expanded and strengthened to improve its contribution to household welfare.
“The Federal Government reported disbursing N658.9 billion in direct cash transfers by September 2026, reaching 10.46 million poor and vulnerable households, using biometric and digital verification for beneficiary identification and payment delivery,” the bank stated.
The report called for faster implementation and improvements in the reach, value and consistency of cash transfers to ensure that the programme provided more meaningful relief to beneficiaries facing 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,” it added.
The bank also urged the Federal Government and state governments to establish a long-term funding framework for social protection, arguing that sustainable financing would be essential to maintaining assistance 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 interventions with their own budgetary commitments, rather than leaving the burden of supporting vulnerable households largely to the Federal Government.
Dedicated budget allocations at both levels of government would help make cash transfers more predictable and reduce dependence on temporary interventions, while a coordinated national framework could improve the delivery and monitoring of social assistance.
The bank called for a shift towards a more predictable social protection system backed by government resources and coordinated action between federal and state authorities, to ensure that vulnerable Nigerians receive sustained support.