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Federal Government reports ₦658.9bn in cash transfers to 10.46 million poor and vulnerable households as of September 2026.
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World Bank calls for wider coverage, adequate payments and consistent disbursements to improve household welfare.
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Bank urges federal and state governments to establish dedicated budget lines and sustainable funding for social protection.
October 19, (THEWILL) – The World Bank has urged the Federal Government and state governments to establish a sustainable social protection system after the Federal Government reported disbursing ₦658.9 billion in direct cash transfers to 10.46 million poor and vulnerable households as of September 2026.
The bank said the reported payments represented progress in reaching vulnerable Nigerians but stressed that the programme’s impact would depend on expanding coverage, ensuring adequate assistance and making disbursements more consistent.
The recommendation was contained in its latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities, which examined Nigeria’s economic conditions and the role of government interventions in cushioning households against financial pressures.
According to the report, the Federal Government used biometric and digital verification systems to identify beneficiaries and facilitate payments under the direct cash transfer programme.
However, the bank argued that the next phase of the intervention should move beyond emergency assistance towards a regular system supported by predictable government funding.
“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.
World Bank Seeks Wider Coverage
The World Bank said the Federal Government needed to accelerate efforts to expand the programme and improve the value and regularity of payments to strengthen its contribution to household welfare.
“The Federal Government reported disbursing ₦658.9 billion in direct cash transfers by September 2026, reaching 10.46 million poor and vulnerable households, using biometric and digital verification for beneficiary identification and payment delivery”, it stated.
The bank added that the intervention needed to reach more eligible households and provide more consistent support to those already enrolled.
“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 said.
The recommendations highlight three important measures of the programme’s effectiveness: the number of vulnerable households reached, the purchasing power of the payments and the frequency with which beneficiaries receive them.
While the reported disbursement provides an indication of the programme’s scale, the figures alone do not establish how much each household received, how frequently payments were made or whether the assistance kept pace with increases in living costs.
These details are important in assessing whether cash transfers provide sustained relief to households facing economic hardship.
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The World Bank also called for a long-term funding framework that would give social protection a more permanent place in federal and state budgets.
“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 would require state governments to complement federal interventions with their own budgetary commitments, rather than leaving much of the responsibility for supporting vulnerable households to the Federal Government.
Dedicated allocations could make funding more predictable, support regular payments and reduce dependence on temporary interventions.
A coordinated national framework could also improve beneficiary identification, reduce duplication and strengthen monitoring of social assistance programmes across the country.
The bank’s position places the sustainability of cash transfers within the broader challenge of ensuring that government revenue translates into tangible improvements in household welfare.
For the programme to provide lasting support, the government will need to demonstrate not only that funds have been disbursed, but also that assistance reaches eligible households regularly and at levels sufficient to help them manage economic pressures.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
