The Federal Government says 10.46 million vulnerable households received direct cash transfers by September 2026, but the World Bank wants wider coverage, adequate payments and a sustainable funding plan to protect Nigerians from economic hardship.

The World Bank has urged the Federal Government and state governments to strengthen Nigeria’s social protection system after the government reported disbursing ₦658.9 billion in direct cash transfers to 10.46 million poor and vulnerable households as of September 2026.

The bank acknowledged the progress recorded under the Federal Government’s cash transfer programme but warned that more needs to be done to ensure that assistance reaches more Nigerians, provides meaningful financial relief and arrives consistently.

In its latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities, the World Bank stressed that cash transfers and effective public services remain important tools for cushioning households against mounting economic pressures.

However, it cautioned that the impact of such interventions depends not only on the amount of money disbursed but also on the number of beneficiaries reached, the adequacy of payments and the regularity of support.

According to the report, the Federal Government has deployed biometric and digital verification systems to identify beneficiaries and facilitate payments under the programme.

“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.

Despite the reported reach of the initiative, the World Bank said the programme must be expanded and improved to deliver more substantial and lasting benefits to households struggling with economic hardship.

“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.

World Bank Wants Shift From Emergency Relief

Beyond increasing the number of beneficiaries, the bank called for a fundamental shift from emergency assistance towards a permanent and adequately funded social protection system.

It argued that poor and vulnerable Nigerians need predictable support rather than interventions that depend largely on temporary programmes or short-term responses to economic difficulties.

The report urged the Federal Government and state governments to establish dedicated budget lines for social protection, gradually increase funding from their own revenue sources and work within a coordinated national framework.

“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 World Bank stated.

The recommendation places greater responsibility on state governments to complement federal efforts by allocating funds to social assistance programmes within their respective budgets.

Such commitments, the bank suggested, would help make support more predictable, strengthen accountability and reduce the country's dependence on temporary relief measures.

States Asked to Share Responsibility

The World Bank’s position highlights the need for a coordinated approach in which both tiers of government take responsibility for protecting vulnerable households.

While the Federal Government has reported substantial disbursements, the bank believes that sustained progress will require stronger state-level participation, reliable financing and better coordination in identifying and supporting eligible beneficiaries.

Dedicated budgetary allocations could also help governments plan social assistance more effectively, monitor results and ensure that funding remains available beyond the lifespan of individual interventions.

For millions of Nigerians facing financial pressure, the effectiveness of the programme will ultimately depend on whether payments are sufficient to ease their difficulties and consistent enough to provide meaningful support.

The World Bank therefore called for continued improvements in the reach, adequacy and regularity of cash transfers, alongside a long-term financing framework capable of sustaining social protection across the country.

The bank's central message is that Nigeria must move beyond one-off relief efforts and build a dependable system that gives poor and vulnerable households a more reliable safety net.