The World Bank has urged the Federal Government and state governments to establish a sustainable funding system for social protection, following the disbursement of N658.9bn to 10.46 million poor and vulnerable households by September 2026.
In its latest Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities, the bank said the impact of cash transfers depended on how many households received assistance, the amount paid and the consistency of disbursements.
The Federal Government used biometric and digital verification systems to identify beneficiaries and deliver payments, according to the report.
The bank acknowledged the scale of the programme but called for faster implementation and broader coverage to improve its contribution to household welfare.
“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.
It urged the government to move beyond emergency assistance towards a regular social protection system supported by dedicated budget allocations at federal and state levels.
“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 bank stated.
The recommendation calls for state governments to commit more public funds to social assistance rather than leaving the responsibility largely to the Federal Government.
The bank said sustained financing and coordinated action between both levels of government would be necessary to maintain support for vulnerable households.
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