The World Bank has called on the Federal Government and state governments to establish a sustainable social protection system with dedicated budgetary allocations, warning that inadequate payments and irregular disbursements could limit the impact of cash transfers on poor and vulnerable households.
The call followed the Federal Government’s disclosure that it had spent N658.9bn on 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 acknowledged the progress recorded under the programme but stressed the need to expand coverage, improve payment adequacy and ensure consistent disbursements to achieve meaningful improvements in household welfare.
The report noted that the Federal Government had deployed biometric and digital verification systems to identify beneficiaries and facilitate payments under the scheme.
However, it cautioned that reaching millions of households would not be sufficient without a reliable system that provides predictable and sustained financial assistance to Nigerians facing economic hardship.
“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.
The bank urged the government to accelerate and strengthen the programme, noting that broader coverage, adequate payments and regular disbursements were essential to improving the welfare of beneficiary households.
“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.
Beyond the immediate expansion of cash transfers, the World Bank recommended that Nigeria move away from emergency relief measures towards a long-term social protection framework backed by sustainable public funding.
“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 recommendation places responsibility on state governments to complement federal interventions by making specific budgetary provisions for social assistance, rather than leaving the burden of supporting vulnerable households largely to the Federal Government.
According to the bank, dedicated allocations in federal and state budgets would provide more predictable funding, strengthen programme continuity and reduce dependence on temporary relief interventions.
It also emphasised the importance of coordination between the two tiers of government to improve the delivery, monitoring and effectiveness of social protection programmes.
The report noted that social protection and effective public service delivery remained important instruments for cushioning households against economic pressures, but their impact would depend on the adequacy and consistency of the support provided.
The World Bank maintained that a coordinated and sustainably financed social protection system would expand access to assistance and strengthen efforts to improve the welfare of poor and vulnerable Nigerians.
