Nigeria's World Bank safety net drawdown hits $744.61m, fraud controls tighten
By Aboki Forex —
Nigeria has drawn an additional $208.29 million from the World Bank under its $800 million National Social Safety Net Programme-Scale Up facility, bringing total disbursements to about $744.61 million. The latest funds come as the Federal Government steps up cash transfers to poor households and tightens controls around payment systems.
The new drawdown represents about 93.1 per cent of the $800 million approved by the World Bank in December 2021. Only $55.39 million remains undrawn under the facility.
Tranches and timing
World Bank loan records show the latest funds were released in three tranches in 2026. Nigeria received $8.29 million on April 8, $150 million on April 29, and $50 million on June 22.
The bank also recorded a reversal of $83.65 million on February 1 2026, before re-disbursing the same amount that day. The transaction had no net impact on the total amount accessed.
Nigeria's net drawdown in the first half of 2026 stood at $208.29 million. Earlier disbursements under the facility included $300 million on October 31 2023, $15 million on November 8 2023, $215 million on April 29 2025, and $6.32 million on November 3 2025.
Programme history and subsidy fallout
The World Bank approved the National Social Safety Net Programme-Scale Up on December 16 2021, with an initial closing date of June 30 2024. Implementation challenges later pushed the closing date to June 30 2027.
The facility is financed through the International Development Association under Credit No. IDA-70190. It was designed to strengthen Nigeria's social protection system and provide financial assistance to poor and vulnerable households.
The loan became a vital funding source after the petrol subsidy removal in May 2023. Initially structured to pay N5,000 monthly to selected households, the programme was revised under President Bola Tinubu's administration to N25,000 monthly for three months, targeting 15 million households.
Despite approval in 2021, implementation was delayed for almost 17 months. The delay was blamed on administrative challenges, political transitions, and controversies around the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.
Fraud scandals and new controls
The ministry became a corruption focus in December 2023 when the Economic and Financial Crimes Commission uncovered an alleged N37.1 billion fraud involving officials and contractors under former minister Sadiya Umar-Farouq. The EFCC detained her in January 2024.
President Tinubu suspended her successor, Betta Edu, in January 2024 after reports that she authorised the transfer of N585 million to a private account for payments to vulnerable groups. The Accountant-General of the Federation rejected the transaction, citing public financial regulations.
The EFCC later said it recovered about N32.7 billion and $445,000 linked to the alleged irregularities. Halima Shehu, former National Coordinator of the National Social Investment Programme Agency, was also arrested over allegations relating to the movement of N44 billion from agency accounts.
Tinubu then appointed Finance Minister Wale Edun to lead a special investigative panel to review and restructure social investment programmes. The government introduced additional controls for beneficiary identification and payment.
The Ministry of Humanitarian Affairs and Poverty Alleviation partnered with the Central Bank of Nigeria and the National Identity Management Commission to make Bank Verification Numbers and National Identification Numbers mandatory for beneficiaries.
Dr Bernard Doro, Humanitarian Affairs and Poverty Reduction Minister, said in March that about 9.2 million Nigerians had benefited from the Household Prosperity and Empowerment Cash Transfer Programme, with approximately N688 billion disbursed over two years.
With the latest World Bank release, Nigeria is close to exhausting the $800 million facility. For taxpayers and development partners, the tighter verification rules will determine whether the remaining funds and future social spending actually reach poor households.