N33.7bn Cash Transfer Questioned as 160m Nigerians Sink Into Poverty

N33.7bn Cash Transfer Questioned as 160m Nigerians Sink Into Poverty

The Auditor-General for the Federation has questioned N33.75 billion transferred to more than 3.29 million households under Nigeria’s cash transfer programme.

The concerns are contained in the 2024 Annual Report on Non-Compliance and Internal Control Weaknesses in MDAs.

The report examined transactions of the National Cash Transfer Office, NCTO, Abuja, for the 2023 financial year.

Auditors said they could not establish whether the money reached genuine beneficiaries because the NCTO failed to provide adequate records.

The report said N33.751 billion was electronically transferred to 3,295,207 households across 35 states during the period under review.

The beneficiaries were reportedly drawn from the National Social Register and the National Beneficiary Register.

However, the auditors said the NCTO could not provide sufficient information to identify recipients or reconcile payments with the official registers.

They also faulted the office for failing to produce complete beneficiary details on payment vouchers.

The auditors specifically requested a Remita statement showing beneficiaries who received the funds against those listed on the approved registers.

According to the report, the statement was not provided, making independent verification of the payments difficult.

“This hindered the authentication of the payments and made it difficult to ascertain whether the beneficiaries who received the funds were genuine,” auditors said.

The report further alleged that NCTO accounts staff obstructed efforts to obtain the Remita records.

“All efforts to obtain access to the REMITA statement were obstructed and denied by NCTO accounts staff, thereby frustrating the audit process,” it stated.

The findings have emerged shortly after the Federal Government launched a $1 billion social protection programme targeting vulnerable Nigerians.

The Household Prosperity and Empowerment Social Protection Project, HOPE-SP, seeks to move beneficiaries from temporary relief towards economic empowerment and self-reliance.

The programme was launched at the State House Banquet Hall, Abuja, alongside four other initiatives addressing humanitarian needs and poverty.

The Auditor-General said the cash transfer deficiencies contravened provisions of the Financial Regulations 2009.

Paragraph 613 requires paying officers to establish that recipients are authorised to receive public funds and provide identification where necessary.

Paragraph 603(i) also requires payment vouchers to contain complete details and supporting documents for verification.

Concerns over the credibility of Nigeria’s social register have persisted for several years.

In 2023, state governors urged the National Economic Council to replace the register, citing concerns over its credibility.

The then Permanent Secretary, Dr Sani Gwarzo, acknowledged shortcomings but described the register as a starting point that could be reviewed.

In January 2024, President Bola Tinubu suspended programmes administered by the National Social Investment Programme Agency, NSIPA.

The suspension followed investigations into alleged corruption within the Ministry of Humanitarian Affairs and Poverty Alleviation.

The then minister, Beta Edu, was subsequently suspended from office.

Poverty rate rises

The latest audit concerns come amid worsening poverty, with the World Bank estimating that Nigeria’s poverty rate reached 64 per cent in 2025.

The figure represents a sharp increase from 40 per cent recorded in 2019, according to the World Bank.

Its Nigeria Development Update projected poverty to remain around 64 per cent in 2026.

The rate is expected to decline gradually to 61 per cent in 2027 and 59 per cent by 2028.

The number of Nigerians living in poverty has also increased dramatically, rising from about 80 million in 2019.

The World Bank estimated that approximately 160 million Nigerians were living in poverty in 2025.

It expects the figure to remain around 160 million in 2026 before falling to 155 million in 2027.

The number is projected to decline further to approximately 150 million by 2028.

Extreme or ultra-poverty has also increased substantially, rising from about 30 million Nigerians in 2019.

The World Bank estimated that approximately 78 million Nigerians were living in extreme or ultra-poverty in 2025 and 2026.

The bank expects poverty to gradually decline as inflation eases and economic growth strengthens.

It projects average real GDP growth of 4.2 per cent between 2026 and 2028.

Expert faults handling of public funds

Development expert and Executive Director of the Center for Fiscal Transparency and Public Integrity, CEPTI, Dr Umar Yakubu, described the audit findings as disturbing.

Yakubu said the report exposed serious weaknesses in the management of Nigeria’s social safety-net programmes.

“When administrative staff actively obstruct auditors from accessing Remita records and multi-billion-naira transactions bypass mandatory pre-audits,we are looking at institutionalized impunity that actively shields corruption from public scrutiny.”

“This systemic failure underscores why technology-driven oversight, rigorous transparency indices like the Transparency and Integrity Index (TII) and independent verification frameworks are non-negotiable for public spending in Nigeria.”

“Social intervention programmes cannot function as opaque conduits for unverified expenditures while vulnerable populations remain statistical justifications for leaked funds,” he said.

CSO demands accountability

The Chancellor of the International Society for Social Justice and Human Rights, ISSJHR, Dr Jackson Omenazu, demanded accountability before further disbursements.

Omenazu said the Auditor-General’s inability to verify the beneficiaries raised serious questions about the management of public resources.

“If public money cannot be independently audited, Nigerians have a legitimate right to ask: who is accountable for the money and where did it go?” he said.

The organisation demanded publication of details covering beneficiaries, implementing agencies, amounts transferred and the purposes of the payments.

It also called for an independent forensic audit, with the findings made available to the public.

ISSJHR urged the government to grant the Auditor-General unrestricted access to records concerning the cash transfers.

The group further demanded that additional disbursements be suspended until the outstanding accountability concerns are addressed.

It said the proposed $1 billion programme should include beneficiary verification, transparent procurement, independent monitoring and regular public reporting.

The organisation also called for recovery of misappropriated funds and prosecution where investigations establish wrongdoing by officials, contractors or beneficiaries.