The World Bank has urged the Federal Government and state governments to expand cash transfer programmes and establish sustainable funding arrangements to provide consistent financial support to poor and vulnerable Nigerians.
The recommendation followed the Federal Government’s reported disbursement of N658.9bn to 10.46 million vulnerable households through its direct cash transfer programme as of September 2026.
In its latest Nigeria Development Update, titled ‘Beyond the Federal Purse: How Higher Revenues Shaped State Priorities’, the bank said the intervention needed to reach more beneficiaries, provide adequate financial assistance and ensure regular payments to improve household welfare.
The report, analysed on Sunday, examined Nigeria’s economic conditions and the role of government interventions in helping households cope with financial difficulties.
It acknowledged the use of biometric and digital verification systems by the Federal Government to identify eligible beneficiaries and facilitate payments under the programme.
However, the bank stressed that the success of social protection initiatives depended not only on the amount disbursed but also on the number of households covered, the value of assistance received 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.
While recognising the reported payments to millions of households, the World Bank called for improvements in the programme’s implementation to ensure that financial assistance delivered greater relief to beneficiaries struggling with economic pressures.
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“The Federal Government reported disbursing N658.9 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,” the bank stated.
It further urged the authorities to accelerate efforts to increase the number of recipients, improve payment adequacy and maintain a consistent disbursement schedule.
“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 added.
Beyond expanding the existing programme, the bank recommended a transition from emergency assistance to a permanent social protection framework supported by dedicated government funding.
It said both federal and state authorities should make specific budgetary provisions for social assistance and progressively increase the share of funding drawn from government 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 stated.
The recommendation places an emphasis on greater participation by state governments, which the bank said should complement federal efforts through their own financial commitments.
According to the report, dedicated budget allocations and a coordinated approach across both levels of government would help ensure predictable payments, strengthen the monitoring of social assistance and reduce reliance on temporary interventions.
The World Bank maintained that a long-term funding framework and sustained collaboration between federal and state authorities would be critical to ensuring that vulnerable Nigerians receive reliable support.