According to a recent report by the World Bank, Nigeria’s conditional cash transfer scheme, despite being a significant initiative funded in part by the global lender, has shown minimal effects on household consumption, financial inclusion, and employment among beneficiaries. The findings, published on the World Bank website, highlight the need for complementary interventions to enhance households’ self-sufficiency.
Launched in collaboration with the Federal Government in 2016, the social safety net program aimed to provide financial support to vulnerable Nigerians. However, despite sustained efforts throughout President Muhammadu Buhari’s administration, the scheme faced credibility challenges, leading to its rejection by President Bola Tinubu’s administration.
Despite the infusion of an $800 million World Bank facility into the program, the report indicates a lack of statistical evidence supporting its effectiveness in promoting financial inclusion. The World Bank recommends supplementing the cash transfer initiative with livelihood support interventions to foster sustainable improvements in household welfare.
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While the cash transfer program encountered obstacles, the report acknowledges some positive outcomes, including increased household savings, food security, and enhanced access to agricultural resources. Beneficiary households also reported greater autonomy in decision-making and mobility.
Meanwhile, Finance Minister Wale Edun has disclosed plans for the government’s social intervention programs to resume soon, following the completion of beneficiary biometric verification. However, the implementation of these programs has faced public scrutiny, especially in light of corruption allegations surrounding the suspension of Humanitarian Affairs Minister Dr. Beta Edu.
The report underscores the importance of continuous evaluation and refinement of social safety net initiatives to effectively address the needs of vulnerable populations and promote sustainable development.
