The World Bank has raised concerns over the Nigerian government’s Conditional Cash Transfer (CCT) programme, saying it has failed to reach millions of vulnerable citizens it was meant to support. According to the Bank’s latest Nigeria Development Update report titled “Building Momentum for Inclusive Growth”, only 37 per cent of the 15 million targeted households have benefitted from the initiative two years after it was launched.
The programme, introduced in 2023 following the removal of fuel subsidy and foreign exchange unification, was supported by an $800 million loan from the World Bank and aimed to provide temporary relief to poor Nigerians affected by inflation and economic reforms. However, as of 2024, only 5.6 million households have received any payment under the scheme.
The report, released in Abuja, paints a grim picture of Nigeria’s poverty landscape. It estimates that 40 million Nigerians have slipped into poverty since 2019, pushing the national poverty rate to 46 per cent. The Bank attributed this surge to high inflation, sluggish economic growth, and declining labour income, especially in urban areas where purchasing power has been severely eroded.
“Successive years of rising inflation and sluggish growth have increased poverty and hardship levels,” the report said. “Since 2018/19, an additional 40 million people fell into poverty, and nearly half of all Nigerians (46 per cent) are estimated to have been living in poverty in 2024.”
The World Bank warned that unless the cash transfer programme is urgently expanded and better implemented, millions more could be left vulnerable in the face of rising living costs. It noted that the slow roll-out of the programme is tied to the requirement of biometric verification and the lack of a foundational digital identity for many would-be beneficiaries.
“Only 5.6 million households—around 37 per cent—have received at least one tranche of direct transfers,” the Bank said. “Further expansion remains dependent on verifying at least one adult in each household with a foundational digital ID.”
Although President Bola Tinubu launched the programme with the intention of transferring ₦75,000 (₦25,000 monthly for three months) to each household, the initiative was suspended following allegations of misappropriation by former Minister of Humanitarian Affairs, Betta Edu. In February 2024, the Federal Government announced the restart of the programme, adding that it would now target an additional 12 million households.
To address delays and inefficiencies, Vice President Kashim Shettima last week inaugurated an inter-agency task force to fast-track the cash transfer scheme and resolve administrative bottlenecks.
