World Bank Calls for Sustainable Cash Transfer System in Nigeria

The World Bank has urged the Federal Government of Nigeria and state governments to create a sustainable social protection system following the disbursement of ₦658.9 billion in direct cash transfers to 10.46 million poor and vulnerable households as of September 2026. This recommendation was part of the Nigeria Development Update report titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities.

The report highlighted that while the cash transfers indicate progress in aiding vulnerable Nigerians, the program's effectiveness relies on expanding coverage, ensuring adequate assistance, and maintaining consistent disbursements. The Federal Government utilized biometric and digital verification systems for beneficiary identification and payment delivery.

The World Bank emphasized the need for the program to transition from emergency assistance to a regular system with predictable funding. It called for accelerated efforts to improve the value and regularity of payments to enhance household welfare, noting that the effectiveness of the program is measured by the number of households reached, the purchasing power of payments, and the frequency of disbursements.