The Federal Government has disbursed N658.9 billion in direct cash transfers to 10.46 million poor and vulnerable households as of September 2026, according to the World Bank.
The bank, however, said the intervention needed to be expanded and strengthened to provide more meaningful and sustained support to Nigerians facing economic hardship.
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The recommendation was contained in the latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities.
The report examined Nigeria’s economic conditions and the role of government interventions in helping households cope with financial pressures.
According to the World Bank, the Federal Government used biometric and digital verification systems to identify beneficiaries and facilitate payments under its direct cash transfer programme.
The FG cash transfers have reached millions of vulnerable households, but the bank said their effectiveness would depend largely on three factors — coverage, adequacy and continuity.
“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 noted that while the N658.9 billion disbursement represented progress, the programme needed to reach more vulnerable households and provide assistance that was sufficient to make a meaningful difference to their 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,” it stated.
The World Bank called for faster implementation and improvements in the reach, value and consistency of the transfers.
It said sustained progress in those areas would help broaden the programme’s contribution to household welfare, particularly as many families continue to face economic pressures.
“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,” the report added.
Beyond expanding the current programme, the World Bank urged the Federal Government and state governments to establish a long-term funding framework for social protection.
It argued that sustainable financing would be essential to maintaining support for poor and vulnerable households beyond emergency interventions.
“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 greater responsibility on state governments to complement federal interventions with their own budgetary commitments.
The bank said vulnerable households should not depend largely on temporary federal interventions, stressing the need for coordinated action between the two levels of government.
Dedicated budget allocations at the federal and state levels could make cash transfers more predictable while reducing reliance on short-term interventions.
The World Bank also argued that a coordinated national framework could strengthen the delivery and monitoring of social assistance.
Such a system, it said, would help ensure that support reaches vulnerable Nigerians more consistently and provides greater protection against economic shocks.
The latest recommendation underscores the bank’s call for Nigeria to move from emergency-based assistance towards a more predictable and sustainable social protection system backed by government resources.
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That approach would require stronger coordination between federal and state authorities, wider beneficiary coverage and more consistent funding for social assistance programmes.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
