- The FG reported paying N658.9 billion to 10.46 million poor and vulnerable households by September 2026
- The World Bank says the cash transfer scheme needs broader coverage, sufficient payments and a more reliable disbursement schedule
- The bank wants federal and state governments to commit budgetary resources to ensure long-term funding for social protection
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The World Bank has called on the federal government to improve its cash transfer scheme after the government reported disbursing N658.9 billion to 10.46 million poor and vulnerable households by September 2026.
The bank said the next phase should focus on reaching more households, ensuring that payments provide adequate assistance and making disbursements more regular.
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Its recommendations appeared in the latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities.
The report examined Nigeria's economic conditions and the role of public spending in helping households cope with financial difficulties.
The document stated that the federal government relied on biometric checks and digital systems to identify beneficiaries and distribute the funds.
However, the bank cautioned that spending alone would not determine the programme's success. Its effectiveness would also depend on how many households received assistance, whether the payments met their needs and how consistently the money was delivered.
The report stated:
“Social protection and service delivery can help cushion households against these pressures, though their effectiveness will continue to depend on coverage, adequacy, and continuity."
World Bank calls for broader coverage
The bank acknowledged the reported payments but said further improvements were needed to increase the programme's impact on household welfare.
It urged the authorities to speed up implementation and ensure that support reaches more eligible households, with payment amounts and schedules that provide meaningful relief.
The report stressed that expanding the scheme and improving payment reliability would strengthen its contribution to household welfare.
It also called for a more dependable funding arrangement to prevent social assistance from depending largely on short-term emergency measures.
FG, states urged to fund social protection
The World Bank recommended that federal and state governments allocate dedicated funds to social protection programmes and gradually increase the share financed from their own revenues.
It said a coordinated approach would help establish a lasting system for supporting poor and vulnerable Nigerians.
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The proposal would require state governments to take a more active role in financing assistance instead of leaving most of the responsibility to the federal government, Punch reports.
Regular budgetary provisions could help make payments more predictable, while coordination between the two levels of government could improve beneficiary identification, programme monitoring and the distribution of assistance.
The bank said a sustainable social protection framework would be essential to maintaining support for vulnerable households as Nigeria continues to face economic pressures.
FG seeks another $1.2bn loan from World Bank
Earlier, Legit.ng reported that the federal government has intensified efforts to secure a new $1.25 billion World Bank loan, with the facility expected to be approved in June 2026, close to Nigeria’s elections scheduled for 2027.
Punch reports that the proposed loan, titled Nigeria Actions for Investment and Jobs Acceleration, is the second-largest World Bank loan under the President Tinubu administration after the Reforms for Economic Stabilisation facility of $1.5bn, which was approved in June 2024.
Source: Legit.ng