The World Bank has urged Federal and State governments to strengthen Nigeria’s social protection system with regular funding, wider coverage and more consistent cash transfers after the government disbursed N658.9 billion to 10.46 million poor and vulnerable households as of September 2026.

The bank said the reported disbursement marked progress in providing financial support to vulnerable Nigerians but stressed that the programme’s impact on household welfare would depend on reaching more people, providing adequate assistance and ensuring that payments were regular.

The recommendation was contained in the latest Nigeria Development Update, titled: “Beyond the Federal Purse: How Higher Revenues Shaped State Priorities,” which examined economic conditions and government interventions to cushion households against financial hardship.

According to the report, the Federal Government used biometric and digital verification systems to identify beneficiaries and deliver payments under its direct cash transfer programme.

“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 called for faster implementation and improvements in the reach, value and consistency of cash transfers, noting that these measures were necessary to strengthen the programme’s contribution to household welfare.

“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 programme, the World Bank said Nigeria needed to move away from relying mainly on emergency interventions towards a sustainable system that provides predictable support to poor and vulnerable households.

It recommended dedicated budget allocations for social protection at both federal and state levels, alongside a gradual increase in government funding to sustain the programme.

“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 responsibility on state governments to complement federal interventions through their own budgetary commitments, with coordinated funding and implementation expected to support more predictable assistance to vulnerable Nigerians.

A sustainable funding framework would also help reduce dependence on temporary interventions and provide a stronger basis for maintaining cash transfers over time.

The World Bank’s assessment further highlighted the need to improve the effectiveness of social protection programmes, particularly in ensuring that assistance reaches the households most in need.

The report noted that cash transfers and public service delivery could help cushion the effects of economic pressures, but their contribution to poverty reduction would depend on how effectively the interventions were designed, funded and implemented.

It also identified limited productive opportunities, gaps in school readiness and weak learning outcomes as challenges that could influence the pace of poverty reduction.

The findings underscore the need to combine direct financial assistance with sustained investment in essential services and a coordinated approach to improving household welfare.