Nigeria draws additional $208m from World Bank for cash transfers

Nigeria has taken another $208.29 million from its $800 million World Bank social safety net loan, pushing total withdrawals to about $744.61 million. That leaves only $55.39 million of the facility undrawn, according to World Bank loan records.

The money came in three tranches: $8.29 million on April 8, $150 million on April 29, and $50 million on June 22, 2026. The credit was approved in December 2021 through the International Development Association to expand social assistance to poor and vulnerable Nigerians and strengthen social protection systems.

How the funds have been drawn

World Bank records also show an $83.65 million reversal on February 1, 2026, followed by a re-disbursement of the same amount the same day, so there was no net change in total access.

Earlier drawdowns include $300 million in October 2023, $15 million in November 2023, $215 million in April 2025, and $6.32 million in November 2025. Nigeria has now accessed about 93.1% of the facility.

Cash transfers and verification changes

The programme became more important after President Bola Tinubu removed the petrol subsidy in May 2023, squeezing household incomes. The government initially planned to pay N5,000 monthly to selected households, then raised the figure to N25,000 per month for three months, targeting millions of vulnerable Nigerians.

The World Bank says the programme aims to reach 56 million poor and vulnerable people. More than 42 million have already received digital cash transfers.

Implementation has faced problems. The Ministry of Humanitarian Affairs and Poverty Alleviation was scrutinised over alleged financial irregularities, leading to stricter verification. Beneficiaries are now identified using Bank Verification Numbers and National Identification Numbers to cut fraud and improve targeting.

Another World Bank loan in the works

Nigeria is also pushing for a new $1.25 billion World Bank loan expected to be approved in June 2026, close to the 2027 elections. The proposed facility, titled Nigeria Actions for Investment and Jobs Acceleration, would be the second-largest World Bank loan under the Tinubu administration after the $1.5 billion Reforms for Economic Stabilisation facility approved in June 2024. At N1,361.4 per dollar, the new loan would total about N1.70 trillion.

For the naira, the continued drawdown signals Nigeria's growing reliance on external borrowing to fund social programmes while economic reforms and rising living costs persist. It also means future debt service obligations will keep weighing on the country's fiscal position.