A new World Bank report on social benefits in Nigeria has revealed that despite billions of naira spent yearly on poverty-alleviation programmes, a majority of the country’s poor citizens remain excluded from government-funded safety nets.
The report, titled “The State of Social Safety Nets in Nigeria”, paints a sobering picture of inefficiency, weak funding, and poor targeting in the nation’s social protection system.
According to the findings, only 44 per cent of benefits from government social safety-net programmes actually reach poor Nigerians — a figure that underscores the systemic flaws undermining poverty reduction efforts.
World Bank Report on Social Benefits in Nigeria Highlights Poor Targeting
The World Bank analysis shows that while 56 per cent of beneficiaries of existing safety-net programmes fall within poor households, they receive just 44 per cent of total benefits.
This gap, the report explains, stems largely from structural issues in programme design — particularly the allocation of benefits on a per-household basis instead of per-person.
As a result, large families in rural or low-income areas, which make up most of Nigeria’s poor, receive the same benefits as smaller households in relatively better economic conditions.
This imbalance reduces the actual impact of cash transfers and other welfare initiatives.
“For well-targeted programmes, the same benefit amount is divided among a larger number of people in poorer households,” the World Bank report on social benefits in Nigeria noted.
“Programmes such as the National Home-Grown School Feeding Programme (NHGSFP), which target individuals, are less affected but still limited by coverage.”
Currently, the NHGSFP reaches only children in grades one to three in select public schools, leaving millions of children outside the programme’s scope.
Low Spending, Minimal Impact on Poverty
Nigeria’s expenditure on social protection is among the lowest in the world, the World Bank report observed.
The country spends just 0.14 per cent of its Gross Domestic Product (GDP) on social protection — compared to a global average of 1.5 per cent and 1.1 per cent across Sub-Saharan Africa.
The report warns that this minimal allocation has “almost no impact” on poverty.
Collectively, all social protection initiatives combined have reduced Nigeria’s national poverty rate by a negligible 0.4 percentage points.
“The inadequacy of benefit levels, low programme coverage, and poor targeting continue to weaken Nigeria’s fight against poverty,” the World Bank report on social benefits in Nigeria stated.
“Even the largest national schemes, such as the cash transfer programme under the National Social Safety Nets Programme (NASSP), offer limited relief per household.”
Dependence on Donor Support Threatens Sustainability
Another major concern highlighted in the World Bank report on social benefits in Nigeria is the country’s overreliance on external funding to sustain its welfare programmes.
Between 2015 and 2021, international donors financed nearly 60 per cent of Nigeria’s total social safety-net spending — with the World Bank itself providing more than 90 per cent of that assistance.
The report warns that such dependence exposes Nigeria to serious fiscal risks, especially when donor commitments decline or global economic conditions shift.
“There is an urgent need for Nigeria to find fiscal space for sustainable social safety-net programming,” it added.
Digital Cash Grant Scheme Offers Hope, But Gaps Remain
In recent months, the Federal Government, through the Ministry of Finance, has launched several new digital cash-transfer initiatives to strengthen direct support for vulnerable citizens.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently announced plans to reach 15 million households, representing around 70 million people, through the digital cash-grant programme.
He noted that about 8.5 million households have already received one tranche of the N25,000 payment, with the remaining 6.5 million expected to benefit before the end of the year.
However, the World Bank report on social benefits in Nigeria indicates that such efforts, while commendable, are undermined by low funding levels and poor data coordination across federal, state, and local agencies.
Social Registry Shows Promise for Targeted Assistance
Despite these challenges, the World Bank commended the National Social Safety Nets Programme (NASSP) for its use of the National Social Registry (NSR) — a database that has already captured over 85 million Nigerians, making it the largest of its kind in Sub-Saharan Africa.
The registry has proven to be an effective tool for identifying and reaching vulnerable households more transparently.
Among NASSP beneficiaries, the programme has reportedly reduced poverty by 4.3 percentage points and the poverty gap by 4.2 percentage points — almost ten times the average impact of other programmes combined.
“This demonstrates the potential of data-driven and well-targeted initiatives to create real change,” the report concluded.
Experts Call for Reform and Better Funding
Analysts say the findings from the World Bank report on social benefits in Nigeria should prompt urgent reforms.
Experts recommend increasing social protection funding, improving transparency, and scaling up digital payment systems to eliminate leakages.
They also urge policymakers to prioritise per-person rather than per-household benefit structures and expand programmes like the NHGSFP to cover more children nationwide.
As the economic reality continues to bite and inflation erodes household income, Nigerians are looking to the government for more effective relief.
For many, the World Bank’s findings serve as a critical reminder that social protection is not merely a welfare issue — but a fundamental pillar of national stability.
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