🇳🇬 Nigeria’s $800m World Bank Loan Sparks Fresh Debate Over Poverty and Cash Transfers

Nigeria’s use of an $800 million World Bank social-safety-net loan is coming under renewed scrutiny as questions grow over whether cash-transfer programmes are reaching the Nigerians most affected by poverty and rising living costs. The World Bank approved the $800 million credit in December 2021 under the National Social Safety Net Programme Scale-Up (NASSP-SU), designed to expand support for poor and vulnerable households and strengthen Nigeria’s social-protection system. As of the latest available loan records, Nigeria had received approximately $744.61 million, or about 93.1% of the facility, following additional disbursements totalling $208.29 million during the first half of 2026. About $55.39 million remained undrawn. The programme has nevertheless faced questions about its effectiveness. A recent report by Nigeria’s Auditor-General said the government could not provide sufficient evidence that ₦33.75 billion in cash transfers intended for more than 3.29 million vulnerable households reached genuine beneficiaries. Earlier World Bank reporting also raised concerns about coverage, saying millions of intended beneficiaries had not been reached by the cash-transfer programme. The controversy therefore centres on a fundamental question: Can borrowing billions of dollars for social protection substantially reduce poverty if beneficiary identification, distribution and accountability remain weak? Key angle: The debate is not simply about the size of Nigeria’s borrowing, but whether borrowed funds intended to protect vulnerable Nigerians are being delivered transparently and effectively. Source: https://punchng.com/auditor-general-flags-n33-75bn-transfers-to-unverified-beneficiaries