World Bank Urges FG to Strengthen Cash Transfers After N658.9bn Payment to 10.46 Million Households

The World Bank has urged the Federal Government to expand and strengthen its social protection programme after disbursing N658.9 billion in direct cash transfers to 10.46 million poor and vulnerable households as of September 2026.

The bank called for wider coverage, adequate financial assistance and regular payments to ensure that the programme provides meaningful and sustained relief to Nigerians facing economic hardship.

The recommendation was contained in the World Bank’s latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities, which examined Nigeria’s economic situation and the role of government interventions in supporting households affected by financial pressures.

According to the report, the Federal Government had adopted biometric identification and digital verification systems to identify eligible beneficiaries and facilitate payments under its direct cash transfer programme.

While acknowledging the reported progress, the World Bank stressed that the effectiveness of the initiative would depend on the number of households reached, the adequacy of the payments and the consistency of disbursements.

The bank noted that social protection programmes and effective public service delivery could help cushion the impact of economic difficulties on vulnerable households.

However, it warned that irregular payments and inadequate coverage could limit the programme’s ability to improve the living conditions of beneficiaries.

The report stated that the government needed to accelerate and deepen its efforts by expanding the programme and ensuring that financial assistance reached more eligible households.

It added that improving the value and regularity of cash transfers would strengthen the programme’s contribution to household welfare.

Beyond the immediate expansion of the initiative, the World Bank called on the Federal Government to move away from emergency-driven interventions towards a permanent and sustainable social protection system.

According to the bank, establishing a reliable framework would require dedicated budgetary allocations at both federal and state levels, alongside a gradual increase in government funding.

The report emphasised the need for a coordinated national approach to ensure that vulnerable Nigerians receive consistent assistance, rather than depending primarily on temporary relief measures.

It also urged state governments to complement federal efforts by making adequate financial provisions for social protection programmes within their respective budgets.

The bank argued that greater involvement by state governments would distribute the responsibility for supporting vulnerable households and strengthen the country’s overall social assistance system.

With dedicated funding arrangements, cash transfers could become more predictable, allowing beneficiaries to plan around the assistance they receive while reducing dependence on emergency interventions.

The World Bank further noted that a shared vision between federal and state authorities would improve coordination, implementation and monitoring of social protection initiatives across the country.

The recommendations come amid continuing concerns about the financial pressures confronting Nigerian households and the need for effective government policies to protect low-income earners from economic hardship.

Although the reported N658.9 billion disbursement represents a significant government intervention, the bank maintained that more work was needed to ensure that the programme reached a wider population and delivered adequate, consistent support.

It stressed that strengthening social protection would require not only expanding the number of beneficiaries but also ensuring that payments were sufficient and delivered regularly.

The World Bank’s position highlights the importance of sustainable funding, effective implementation and cooperation between the federal and state governments in improving the welfare of poor and vulnerable Nigerians.

The bank maintained that transitioning to a properly funded and predictable social protection system would help ensure that government assistance provides lasting benefits to households in need.