The World Bank has called on the Federal Government to expand and improve its direct cash transfer programme, following the disbursement of ₦658.9bn to 10.46 million poor and vulnerable households as of September 2026.
The bank said the government must ensure that more vulnerable Nigerians benefit from the initiative, while improving the amount paid to recipients and making disbursements more regular.
The recommendations were contained in its latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities, which examined the country’s economic situation and government interventions aimed at easing financial pressures on households.
According to the report, the Federal Government employed biometric and digital verification systems to identify beneficiaries and facilitate payments under the programme.
The World Bank, however, stressed that the effectiveness of social protection initiatives depended on the number of people reached, the value of assistance provided and the consistency 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.
The bank acknowledged that the ₦658.9bn disbursement had provided support to millions of households but maintained that the programme required further expansion to improve its impact on beneficiaries.
It urged the government to accelerate efforts to increase coverage and ensure that financial assistance offered meaningful relief to Nigerians struggling with economic hardship.
The report stated, “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.”
Beyond improving the existing programme, the World Bank called for a shift from emergency-based assistance to a sustainable social protection system supported by long-term government funding.
It urged the Federal Government and state governments to establish dedicated budgetary allocations for social protection programmes and gradually increase funding from their own resources.
“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 recommendation places responsibility on state governments to complement federal efforts by committing resources to social assistance programmes within their respective budgets.
The bank noted that predictable funding and better coordination between the two levels of government would help ensure continuity in the delivery of support to vulnerable citizens.
It said a coordinated and adequately funded social protection framework would strengthen the government’s capacity to respond to economic challenges and improve household welfare across the country.
