Chris Okpoko
Nigeria, a nation rich in cultural diversity and resources, is beset by profound economic challenges. Among these challenges is the inadequacy of its social protection systems, an issue that not only impacts individual lives but also hinders national development. Despite billions of naira spent annually to cushion hardship, a new World Bank report says Nigeria’s social safety-net programmes are failing to reach those who need them the most. In the latest report titled “The State of Social Safety Nets in Nigeria”, released in November 2025, the bank revealed that only 44 per cent of total benefits from government-funded safety-net schemes actually reach poor Nigerians.
The report examined Nigeria’s spending on social safety nets, assessing their coverage and efficiency, and reveals how poor targeting, weak funding, and fragmented implementation have left millions of vulnerable citizens without meaningful relief despite the government’s lofty poverty-reduction promises.
Recall that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently announced that the federal government is targeting 15 million households, covering some 70 million people via the digital cash grant scheme. He disclosed that about 8.5 million households have already received at least one tranche of the N25,000 payment, while the remaining 6.5 million households are expected to be paid before year-end.
Despite this, the World Bank described Nigeria’s social safety-net spending as inefficient, saying that a smaller share of benefits goes to the poor, even though they are the dominant beneficiaries. According to the bank, while about 56 per cent of the recipients of safety-net programmes are poor, they receive only 44 per cent of the total benefits. It explained that this imbalance stems from the way most programmes, including the National Social Safety Nets Programme, allocate a fixed amount per household rather than per person. As a result, poor families, often larger, end up sharing limited benefits among more members. The report noted that initiatives such as the National Home-Grown School Feeding Programme, which focus on individuals rather than households, are less affected by this problem. However, it added that the school feeding scheme currently targets only pupils in grades one to three and lacks full national coverage, restricting the number of children who can benefit.
According to the bank, Nigeria spends barely 0.14 per cent of its Gross Domestic Product on social protection, far below the global average of 1.5 per cent and the Sub-Saharan African average of 1.1 per cent. That tiny allocation, the report warns, has had “almost no impact” on poverty. The combined effect of all existing social protection programmes in the country has reduced the national poverty headcount by just 0.4 percentage points; hence, it is imperative to rethink and reform safety nets to effectively lift people out of poverty and break the cycle of poverty.
Social protection encompasses policies and programs aimed at reducing poverty and vulnerability by promoting efficient labour markets, diminishing people’s exposure to risks, and enhancing their capacity to manage economic and social risks. In Nigeria, various forms of social protection exist, including cash transfers, food assistance, and public works programs. However, these initiatives often fall short due to limited funding, lack of accessibility, bureaucratic inefficiencies, and inadequate coverage of the most vulnerable populations.
Nigeria’s current safety net programmes are primarily handouts rather than comprehensive solutions that would address systemic issues. While cash transfer programs like the National Social Investment Programme (NSIP) have provided some relief, they are not enough to make a substantial impact. Many citizens in desperate need of support remain outside the reach of these programmes, facing barriers such as geographic isolation, lack of awareness, and administrative bottlenecks.
Moreover, the emphasis on temporary and inadequate assistance does not empower beneficiaries to rise above poverty. Instead of fostering skills or providing opportunities for sustainable livelihoods, existing safety nets often create dependencies. This reliance on handouts can promote a cycle of poverty rather than breaking it, limiting individuals’ aspirations and potential for growth.
To genuinely lift lives, Nigeria must rethink its approach to social protection. Moving beyond handouts requires a strategy that integrates economic development, education, health care, and community engagement into the safety net framework.
One of the most effective ways to enhance safety nets is by focusing on creating sustainable economic opportunities. Instead of merely providing financial assistance, the Nigerian government could invest in programmes that promote entrepreneurship and job creation. Skills-building initiatives tailored to market demands can empower individuals, allowing them to become self-sufficient and contribute to the economy.
For instance, vocational training programmes could be established in collaboration with private sector partners, enabling young Nigerians to acquire relevant skills in trades such as technology, manufacturing, and agriculture. By shifting some of the social protection budget toward these initiatives, Nigeria can cultivate a resilient workforce capable of driving economic growth.
Education is a cornerstone of social mobility and economic development. Nigeria’s education system faces significant challenges, including poor infrastructure, insufficient funding, and low enrollment rates, particularly among marginalized groups. Prioritizing education within the social protection framework is vital to equip future generations with the skills needed to thrive.
Implementing targeted educational programmes, such as conditional cash transfers for families that keep their children in school, can help increase enrollment and retention rates. Furthermore, investing in teacher training and educational resources will improve the quality of education, ensuring that students receive the knowledge and skills necessary to succeed.
Health care is another critical area that intersects with social protection. Many Nigerians face financial barriers to accessing basic health services, which exacerbates poverty while contributing to a cycle of ill health and economic instability. Strengthening health care systems and ensuring that essential services are accessible to all can significantly improve overall well-being.
A universal health coverage strategy could alleviate the financial burden on families, allowing them to seek medical care without fear of economic ruin. Additionally, integrating health education and preventive care within the safety net structure can empower individuals to take control of their health, ultimately leading to increased productivity and economic participation.
Engaging communities in designing and implementing safety net programmes can lead to more effective outcomes. Local knowledge and insights can help tailor initiatives to address specific needs and build trust among beneficiaries. Community-led programmes that encourage participation and ownership can foster a sense of responsibility and collective empowerment.
Integrating peer support networks and local organizations into the implementation of safety nets can enhance outreach and ensure that assistance reaches those who need it most. By prioritizing a bottom-up approach, Nigeria can create a more inclusive social protection system that resonates with its diverse populations.
Realigning Nigeria’s safety nets is not without challenges, particularly regarding funding. To elevate social protection spending from the current 0.14 percent of GDP, innovative financing mechanisms must be explored. This includes reallocating existing budgets, increasing taxation for high earners, and seeking international aid and investment.
Public-private partnerships can also play a vital role in funding social protection initiatives. Engaging businesses in corporate social responsibility (CSR) efforts aligned with government priorities can mobilize additional resources. Establishing transparent mechanisms for managing these funds is crucial to ensuring accountability and efficacy.
Lastly, implementing robust monitoring and evaluation frameworks is essential for assessing the effectiveness of safety net programmes. Regular reviews and feedback mechanisms can identify strengths and weaknesses within the system, allowing for timely adjustments and improvements. Data-driven decision-making will enable policymakers to allocate resources where they are most impactful, ensuring that social protection truly serves its purpose of uplifting lives.
In conclusion, transforming the nation’s safety nets from simple handouts to effective support systems requires a comprehensive and integrated approach. By investing in economic opportunities, improving education, strengthening health care, and fostering community engagement, Nigeria can create a social protection framework that empowers its citizens and breaks the cycle of poverty. Addressing funding challenges and emphasizing monitoring and evaluation will further ensure the sustainability and effectiveness of these initiatives. As Nigeria embarks on this journey towards overhauling its safety nets, it holds the potential not just to lift lives but to catalyze national growth and development, ultimately realizing the aspirations of its diverse and vibrant population.