The World Bank has raised serious concerns regarding the effectiveness and efficiency of social safety net programs of Nigeria, despite recent large disbursements by the government.
In its latest report, “The State of Social Safety Nets in Nigeria”, the Bank revealed that while 56% of beneficiaries of these programs are classified as poor, only 44% of the total financial benefits actually reach poor households. This means that the majority of the poor population of Nigeria remains unreached by the schemes, and the funds are not being distributed proportionally to those most in need.
The World Bank attributes this inefficiency and inequality in benefit distribution to a fundamental flaw in the design of most Nigerian safety net interventions, including the National Social Safety-Net Programme (NASSP) cash transfers.
Most programs determine benefit levels at the household level (a fixed amount per household) rather than on an individual, per-person basis. Since poor people tend to live in larger households, the fixed transfer amount is divided among more family members. This dilutes the benefit per person in the poorest homes compared to smaller or relatively better-off households receiving the same sum.
The World Bank’s report contrasts with claims made by the Nigerian government regarding the success of its social protection programs.
The Minister of Finance, Olawale Edun, recently reported that the government had disbursed ₦330 billion in cash transfers to the poor and vulnerable, assuring that the social protection program was firmly back on track.
The Bank’s analysis shows that despite the funds spent, the current safety net structure fails to adequately target and sustain its most vulnerable populations, leading to minimal impact on overall poverty reduction.
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