The Federal Government has paid out ₦658.9 billion in direct cash transfers to 10.46 million poor and vulnerable households as of September 2026, according to the World Bank.
However, the institution has called for significant improvements to the programme, including broader coverage, higher payment amounts, and more consistent disbursements.
In its latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities, the World Bank acknowledged the progress made but stressed the need to move beyond temporary emergency measures.
It urged the government to develop a sustainable social protection system that delivers regular support to vulnerable Nigerians.
The report noted that the Federal Government employed biometric and digital verification systems to identify beneficiaries and process payments under the cash transfer scheme.
While social protection programmes can help shield households from economic pressures, the bank cautioned that their success hinges on three key factors: the number of people reached, the adequacy of the assistance provided, and the reliability 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.
Although the ₦658.9 billion disbursement has benefited millions of households, the World Bank said the programme must be expanded and strengthened to make a greater impact on household welfare.
It called for faster implementation with improved reach, higher transfer values, and consistent payments.
The bank also recommended that both the Federal Government and state governments create a long-term funding framework for social protection.
This would involve dedicated budget lines at federal and state levels, a gradual increase in domestic financing, and a shared national vision.
“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 added.
The recommendations place shared responsibility on state governments to complement federal efforts, aiming to make cash transfers more predictable and reduce reliance on short-term interventions.
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