By Chibuzor Alli
The World Bank has urged the Federal Government to make cash assistance to poor Nigerians more regular, adequate and far-reaching, warning that the impact of social protection programmes depends on more than the amount of money disbursed.
The call comes after the government reported paying N658.9bn in 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 called for a shift from emergency relief measures towards a sustainable social protection system backed by predictable government funding.
The report, analysed on Sunday, examined economic conditions and the role of public interventions in helping households cope with financial pressures.
“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.
N658.9bn reaches 10.46 million households
According to the report, the Federal Government used biometric and digital verification systems to identify beneficiaries and facilitate payments under its direct cash transfer programme.
“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.
Despite the reported reach of the programme, the World Bank said more needed to be done to ensure assistance delivers meaningful and sustained benefits to households facing economic hardship.
It called for improvements in the number of beneficiaries reached, the value of payments and the consistency of disbursements.
“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 recommendation highlights three key challenges for cash assistance programmes: reaching more eligible households, ensuring payments are sufficient to provide meaningful support, and delivering funds consistently enough for beneficiaries to plan their spending.
World Bank wants permanent funding framework
Beyond expanding the existing programme, the bank urged federal and state authorities to establish a long-term financing structure for social protection.
It argued that dedicated budget allocations and gradually increased funding from government resources would help reduce reliance on temporary interventions and make assistance more predictable.
“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 proposal would require state governments to take a more active role in financing social assistance rather than leaving most of the responsibility to the Federal Government.
Dedicated allocations in federal and state budgets could provide a more reliable funding base, while a coordinated national framework could strengthen programme implementation, monitoring and accountability.
Focus shifts from cash payments to lasting relief
The World Bank’s recommendations suggest that the success of Nigeria’s cash transfer programme should be measured not only by the total amount disbursed but also by the consistency and adequacy of the support received by beneficiaries.
Although the reported N658.9bn disbursement represents a substantial government intervention, the bank stressed that broader coverage and more predictable payments would be necessary to strengthen the programme’s contribution to household welfare.
A sustainable system, backed by regular budgetary commitments and coordinated federal and state action, could help vulnerable Nigerians access support beyond periods of immediate economic distress.
The challenge for the authorities is to turn the existing cash transfer programme into a dependable social protection system capable of providing sustained assistance to households most in need.
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