An audit of Nigeria’s federal cash transfer programme has raised concerns over documentation gaps, payment verification and financial controls surrounding billions of naira allocated to support vulnerable households, prompting renewed calls for greater transparency in the country’s social protection system.
The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to direct relevant government agencies to account for more than ₦78.8 billion in questioned expenditures linked to the National Cash Transfer Office (NCTO) and the National Social Safety Nets Coordinating Office (NASSCO).
The organisation’s demand followed findings attributed to the 2024 Annual Report of the Auditor-General of the Federation, which examined government transactions covering periods between January and December 2023.
According to SERAP, the audit raised concerns over several payments made under Nigeria’s cash transfer and social investment programmes, including beneficiary payments, procurement activities and administrative expenses.
One of the largest items highlighted by SERAP is ₦33.751 billion reportedly paid by the National Cash Transfer Office to 3,295,207 households and beneficiaries across 35 states in 2023.
SERAP said the Auditor-General questioned the availability of sufficient records to confirm that the funds reached the intended beneficiaries, citing the absence of complete REMITA payment statements and gaps in beneficiary documentation.
The organisation also cited ₦36.744 billion in payments allegedly made in December 2023 without evidence of prepayment audit checks, as well as ₦4.616 billion in expenditures that lacked adequate supporting documents.
Other questioned transactions cited include:
• ₦350.18 million paid for enrolment of unbanked beneficiaries without sufficient documentation.
• ₦89.51 million spent on store items that were allegedly not supported by delivery records or entries in store ledgers.
• ₦17.42 million issued as cash advances for diesel expenses without adequate supporting details.
• ₦280.42 million in mobilisation and advance payments to payment service providers without advance payment guarantees.
• ₦393.71 million reportedly disbursed to nine states for beneficiary enrolment activities but not fully utilised.
SERAP also raised concerns about NASSCO-related expenditures, including ₦2.24 billion processed through vouchers without prepayment audit, ₦44.55 million for laptops allegedly without delivery records, ₦19.76 million for advertisements without evidence of publication, and ₦141.01 million paid for software without reported clearance from the National Information Technology Development Agency.
SERAP has argued that the findings point to weaknesses in financial oversight mechanisms and called for a detailed reconciliation of payments against Nigeria’s National Social Register and National Beneficiary Register.
The organisation has asked the government to publish audit trails showing beneficiaries, payment records, approvals, verification processes and recovery efforts for any funds found to have been improperly spent.
It also requested investigations by relevant anti-corruption agencies into the questioned expenditures.
Nigeria’s cash transfer programme is part of the wider National Social Investment Programme designed to provide financial support to poor and vulnerable households.
The initiative expanded significantly during the administration of former President Muhammadu Buhari, with the National Social Safety Nets Project supported partly through financing from international development institutions.
The World Bank approved additional financing for Nigeria’s National Social Safety Nets Project during the COVID-19 period as the country attempted to expand support for vulnerable citizens affected by economic disruption.
The programme relies heavily on the National Social Register, a database designed to identify poor and vulnerable households eligible for government assistance.
However, questions around the accuracy, updating and verification of beneficiary databases have remained a recurring issue in Nigeria’s social intervention programmes.
Nigeria’s social protection spending has historically remained low compared with many developing countries. The World Bank and other development organisations have repeatedly identified limited coverage, weak administrative systems and targeting challenges as key obstacles affecting social assistance programmes.
The expansion of cash transfers has increased the importance of reliable beneficiary databases and strong monitoring systems, particularly as government resources face competing demands from infrastructure, debt servicing, healthcare and education.
Financial experts have noted that cash transfer programmes can provide direct support to vulnerable citizens when properly implemented, but poor verification systems can create risks of duplication, inclusion of ineligible beneficiaries or failure to reach intended recipients.
The Auditor-General of the Federation is constitutionally responsible for auditing public accounts and reporting findings to the National Assembly.
Audit observations do not automatically establish criminal wrongdoing. They highlight areas where public institutions are required to provide explanations, supporting documents or corrective actions.
Where financial irregularities are confirmed after investigation, relevant authorities may pursue recovery, sanctions or prosecution depending on the circumstances.
The controversy places renewed attention on how Nigeria manages social assistance funds at a time when millions of households continue to face economic pressure.
The Federal Government has not publicly announced specific actions in response to SERAP’s latest demand. Any further investigation, clarification or recovery process would depend on responses from the responsible agencies and findings from relevant oversight institutions.
For Nigeria’s social protection system, the broader challenge remains balancing the need for rapid assistance to vulnerable citizens with the accountability structures required to ensure that public funds reach those they are intended to support.