World Bank Criticizes Nigeria’s Conditional Cash Transfer Program for Failing to Reach Millions

The World Bank has criticized Nigeria’s conditional cash transfer program, launched by the Federal Government in 2023, for failing to adequately support vulnerable households. According to the World Bank’s latest Nigeria Development Update report, only 37% of the targeted households have benefited from the scheme, with just 5.6 million out of the planned 15 million households receiving aid. The program, which aimed to cushion the economic impact of rising fuel prices and exchange rate adjustments, has been slow in its rollout, raising concerns over its effectiveness.

The report highlights that since 2019, surging inflation and slow economic growth have pushed an additional 40 million Nigerians into poverty, with nearly half of the population—46%—now living below the poverty line. The World Bank emphasized that poverty has deepened and broadened, especially in urban areas, as labor incomes have not kept pace with inflation, severely depleting Nigerians’ purchasing power. This has led to growing hardship for many households, which the cash transfer program was designed to alleviate.

However, the World Bank noted significant shortcomings in the implementation of the initiative. Although the government initially aimed to provide financial support to 15 million households, the program has only reached a fraction of this target. One major obstacle has been the challenge of biometrically verifying households, with many still lacking the necessary digital identity for registration. The report urges the government to scale up efforts, ensuring that the poorest and most vulnerable households are reached, as millions risk being left behind amid the rising cost of living.

In response, the World Bank has recommended urgent improvements to Nigeria’s social protection framework. These include accelerating the distribution of cash transfers and reallocating government revenue gains to support targeted social programs. The report also stresses the need for structural reforms to strengthen the social protection system, focusing on economic inclusion, human capital development, and poverty reduction over the long term.

Despite the challenges faced by the cash transfer program, the Nigerian government has expressed its commitment to restarting and expanding the initiative. In February 2024, the government announced plans to target an additional 12 million households, and an inter-agency task force was established to address the delays and administrative issues hindering the program. However, with millions still awaiting assistance, the World Bank’s call for rapid action remains a crucial concern for the success of the initiative and the alleviation of poverty in the country.