World Bank asks FG to widen over N50,000 cash transfers after N658.9bn reached 10.46m households

The Federal Government has shared over N50,000 to 10.46 million poor and vulnerable households, with total disbursements reaching N658.9 billion by September 2026, the World Bank has said. The bank wants the cash transfer scheme to reach more households, pay enough to matter and disburse funds more reliably.

The recommendations are in the latest Nigeria Development Update. The report examined Nigeria’s economic conditions and the role of public spending in helping households cope with financial difficulties.

Coverage, adequacy and continuity

The World Bank said the federal government used biometric checks and digital systems to identify beneficiaries and distribute the funds. But it warned that spending alone would not determine the programme’s success. Its impact would also depend on how many households receive assistance, whether the payments meet their needs and how consistently the money is delivered.

The report stated: "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 bank acknowledged the reported payments but said more improvements are needed. It urged the authorities to speed up implementation and ensure support reaches more eligible households, with payment amounts and schedules that provide meaningful relief.

Funding must be predictable

The World Bank called for a more dependable funding arrangement so social assistance does not depend mainly on short-term emergency measures. It recommended that federal and state governments allocate dedicated funds to social protection programmes and gradually increase the share financed from their own revenues.

It said state governments should take a more active role in financing assistance instead of leaving most of the responsibility to the federal government. Regular budgetary provisions could make payments more predictable, while coordination between the two levels of government could improve beneficiary identification, programme monitoring and distribution of assistance.

The bank said a sustainable social protection framework would be essential to maintaining support for vulnerable households as Nigeria continues to face economic pressures.

Loan plans in view

Separately, the Federal Government has intensified efforts to secure a new $1.25 billion World Bank loan, with the facility expected to be approved in June 2026, close to Nigeria’s elections scheduled for 2027. The proposed loan, titled Nigeria Actions for Investment and Jobs Acceleration, is the second-largest World Bank loan under President Tinubu after the Reforms for Economic Stabilisation facility of $1.5 billion, which was approved in June 2024.

For vulnerable households, the cash transfer debate is about more than the amount spent. Predictable payments and wider coverage would give more poor families steady support as living costs remain under pressure.