The Federal Government disbursed N658.9 billion in direct cash transfers to 10.46 million poor and vulnerable households by September 2026, according to the World Bank’s latest Nigeria Development Update.

The report said the programme uses biometric and digital verification to identify beneficiaries and deliver payments, while noting that its impact will depend on expanding coverage, improving the adequacy of transfers, and ensuring regular payments.

The World Bank also called for a shift from emergency support towards a sustainable social protection system backed by dedicated federal and state budget allocations and gradually increased government funding.

FG expands cash transfer coverage

The World Bank said cash transfers and other social protection measures could help cushion households against economic pressures, but stressed that the programmes must reach more people and provide consistent support to improve welfare.

  • “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 lender noted.
  • The World Bank called for improvements in the coverage, adequacy, and consistency of cash transfers.
  • It recommended dedicated budget lines for social protection at both federal and state levels.
  • The report also advocated gradually increasing government funding to support a more sustainable system.
  • The bank said a shared vision for social protection would help move the country beyond emergency responses.

The recommendations highlight the need to ensure that cash assistance provides reliable support to vulnerable households rather than serving only as a short-term intervention.

Nigeria’s social protection faces coverage gaps

The latest report follows concerns about the reach and effectiveness of Nigeria’s social intervention programmes.

Nairametrics previously reported that the Federal Government committed hundreds of billions of naira to social intervention programmes in 2025, while millions of vulnerable households remained unreached.

  • In a separate report, the World Bank found that although 56% of social protection beneficiaries were poor, only 44% of total benefits reached poor households. This points to gaps in how social protection resources are distributed and the need to improve targeting.
  • The bank also highlighted wider human development challenges that continue to affect household welfare.
  • Under-five mortality declined from 132 deaths per 1,000 live births in 2018 to 110 in 2024.
  • Antenatal and postnatal care coverage improved over the same period, although neonatal mortality remains an area of concern.
  • Only about a quarter of children demonstrate age-appropriate literacy, while around two-fifths demonstrate age-appropriate numeracy.
  • Access to electricity, including through off-grid connections, has improved, but further expansion is needed to support broader welfare gains.

The report said limited productive opportunities, gaps in school readiness, and weak learning outcomes remain challenges that could influence the pace of poverty reduction.

Economic growth remains a priority

Nigeria is targeting economic growth of 7% in 2027, above the International Monetary Fund’s projection of 4.3%, as the Federal Government seeks to accelerate reforms and lower inflation to support business activity.

The growth target comes as the government faces the challenge of improving living standards while expanding social protection for poor and vulnerable households.

The World Bank’s findings suggest that cash transfers remain one part of a broader effort to improve welfare. Sustained progress will also depend on stronger education and health outcomes, wider access to essential services, and a social protection system supported by reliable public funding.