In Nigeria’s ongoing battle against poverty and efforts to foster economic stability, the Federal Government, in collaboration with the World Bank, launched a conditional cash transfer program back in 2016. This initiative aimed to provide financial support to vulnerable segments of the population, with the hope of uplifting them from the grips of poverty.
However, recent research conducted by the Bretton Woods Institute has shed light on the program’s limited impact on household consumption, financial inclusion, and employment, especially among women.
Despite the earnest efforts to uplift vulnerable populations, the study revealed that the cash transfer program fell short of significantly improving household consumption or boosting women’s employment opportunities.
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“However, in contrast to these strong positive impacts, we do not find any statistically significant effects on overall household consumption or on caregivers’ employment and financial inclusion, the World Bank stated.
“Nonetheless, the limited impacts on household consumption and women’s employment suggest that there is remaining scope for a complementary livelihood support intervention to generate sustainable improvements in households’ self-sufficiency.”
This revelation has prompted the World Bank to advocate for supplementary livelihood support interventions to fortify sustainable progress in enhancing households’ self-sufficiency.
The Bretton Woods Institute’s findings underscore the pressing need for additional measures to foster meaningful change in household welfare and economic empowerment, particularly among the most marginalized communities.
While the cash transfer program has yielded positive outcomes such as increased household savings, improved food security, and greater decision-making autonomy for beneficiaries, its efficacy in driving substantial socioeconomic transformation remains in question.
The Federal Government’s National Social Safety Nets Project (NASSP), which oversees the cash transfer program, initially aimed to provide financial assistance to one million Nigerians as part of a broader N500 billion social intervention package.
The Federal Government secured an $800 million World Bank facility in 2023 to expand the cash transfer program, particularly targeting the most vulnerable segments of society in the aftermath of the removal of petrol subsidies.
However, the program has faced challenges, including issues of credibility and corruption allegations, prompting public scrutiny and demands for reform.
The Humanitarian Ministry, responsible for disbursing the funds, is plagued by allegations of corruption and malfeasance. The latest minister, Betta Edu, was suspended by President Bola Tinubu for allegedly diverting funds designated for the social intervention program into private accounts.
Despite these shortcomings, the World Bank’s research uncovered several positive outcomes. These include an uptick in household savings and food security, as well as enhanced access to farmlands and livestock, among other benefits.
The report also highlighted that beneficiary households were more inclined to shift away from solely using their income for household consumption and instead engage in longer-term saving practices. Moreover, beneficiaries reported experiencing improved autonomy in decision-making and greater freedom of movement.
“We also find improvements in caregivers’ self-reported happiness, decision-making autonomy over how to spend their own income, and freedom of movement.
“Households are substantially more likely to save the longer they have been receiving cash transfers and to switch away from exclusively using the cash for household consumption,” the World Bank said.