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Challenges Affecting Cash Transfers to Vulnerable Nigerians Revealed by World Bank

Challenges Affecting Cash Transfers to Vulnerable Nigerians Revealed by World Bank

Title: "Challenges Affecting Cash Transfers to Vulnerable Nigerians Revealed by World Bank


A recent report from Nairametrics has brought to light a significant issue in the Federal Government's cash transfer program in Nigeria. The World Bank has disclosed that less than one percent of the country's underprivileged individuals have a National Identity Number (NIN).

The World Bank had set a target of 20 percent of the individuals in the National Social Registry having a valid NIN by June 30, 2022. Unfortunately, as of December 31, 2022, only 0.10 percent of these individuals had NIN, falling far short of the target.

The report attributes this shortfall to the slow expansion of the National ID system, a factor beyond the control of the program. As a result, the National Social Safety Nets Project (NASSP) had to resort to alternative methods to verify the identity of beneficiaries receiving cash transfers. CONTINUE READING........

This situation raises concerns that around 9.66 million underprivileged individuals may be excluded from the program if they fail to obtain their NIN. Recent reports suggest that the Federal Government is considering expanding the National Social Register and may disqualify individuals without both NIN and Bank Verification Numbers (BVN).

The NIN challenges in Nigeria have been marked by delays and extortions, despite the efforts of the National Identity Management Commission (NIMC). Technical issues with the NIN verification portal have also been reported, particularly in 2022.

To address these challenges, the Federal Government relocated the NIMC from the Ministry of Communications, Innovation, and Digital Economy to the Ministry of Interior. Additionally, the NIMC introduced a self-service solution for Nigerians to conveniently enroll for their NIN via smartphones, although the implementation is still pending. CONTINUE READING......

In 2016, the Federal Government and the World Bank joined forces to establish the National Social Safety Nets Coordinating Office (NASSCO) with the aim of improving social safety nets and social protection systems in Nigeria. The goal is to eliminate severe poverty and improve opportunities for all citizens.

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The World Bank extended a $500 million credit to support the social safety net program, originally set to conclude in June 2022 but later extended to December 2022 due to payment delays. Furthermore, the World Bank approved an additional $800 million to extend the program until 2024, making it one of the fuel subsidy palliatives of the current administration.

In recognition of the 2023 International Day for the Eradication of Poverty, President Bola Tinubu initiated the disbursement of N25,000 to 15 million households for three months as part of a social safety net initiative.

Source: Nairametrics


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