CCT Programs in NigeriaDespite having some of the greatest potential for development in Africa and a vast amount of resources, Nigeria remains one of the poorest countries in the world. Over the years, the Nigerian Government has attempted to implement various poverty alleviation strategies in order to diminish poverty. Unfortunately, little progress has been made. However, more recently, the Nigerian Government has started implementing a new strategy in order to fight the persistent poverty in the country through Conditional Cash Transfer (CCT) Programs. It is hopeful that CCT programs in Nigeria will bring lasting benefits for impoverished communities.

The Success Rates of CCT Programs

Around the world, CCT programs have become increasingly popular and have been overwhelmingly successful. Positive results have also been seen in certain regions in Africa. As explained by the World Bank, “Cash transfers targeted to the poor, particularly children and other vulnerable groups, now help millions of Africans to support their basic consumption, avoid destitution and respond to shocks.” To achieve this success, most programs focus efforts toward providing cash transfers to poor families with children. In return for these transfers, families must maintain their children’s school attendance as well as keep up with regular health checkups. As a result, the country profits through an increase in the value of its human capital.

The COPE CCT Program

Beginning in 2007, the Nigerian Government implemented the In Care of the People (COPE) CCT program, which at the time was the only nationwide government-sponsored CCT program. The program was launched across 12 Nigerian states and aimed to break intergeneration poverty through cash transfers with the conditions that households maintained their children’s school attendance of at least 80% and receive regular immunizations and healthcare visits.

In the development of COPE, one of the main goals that the Nigerian Government was hoping to achieve was to reduce poverty short-term and promote an increase in the value of human capital in the long-term. Although many Nigerian citizens benefited from the CCT program, there were complications in the execution of the program. One key example that is necessary for the program to succeed is to extend the length of time in which households participate in the program. When first implemented, the program only lasted a year for participating families. However, in order to effectively assist these households, it is important that the Nigerian Government expand the period of time in which families can benefit from the cash transfers.

The Kano State CCT Program

While the COPE CCT program was designed to impact different states across Nigeria, the Kano CCT program took a different approach. The Kano State government implemented a pilot of this CCT program from 2010 to 2012 in order to increase female school attendance and reduce female drop-out rates in the specific region.

Although the COPE CCT program did not have overwhelming success, the Kano CCT program did see some success. For example, data from the World Bank shows that the number of girls enrolled in school slightly increased from 47% in 2009 to 50%  in 2011. However, there were also unexpected decreases in rates despite the CCT program. In Kano, in 2009, 47% of girls enrolled in class one enrolled in class six in, while in 2011, only 41% of those enrolled in class one were in class six.

Regardless of conflicting outcomes, the World Bank still rates the program’s efficiency as substantial. In Kano, the savings from the CCT program were also spent on the construction of additional boreholes and toilets in the schools.

Although the program itself still needs further development, the Kano CCT program has the potential to benefit households living in poverty as well as further improve female education attendance and drop-out rates.

The Potential of CCT Programs in Nigeria

Although these CCT programs still need improvement with regard to execution and development, the programs show great promise in reducing poverty rates, breaking intergeneration cycles of poverty and increasing the value of human capital in Nigeria. This is especially hopeful considering the success of the programs in other African countries. Because these programs target the health and education of youth living in poverty, these strategies help to create a strong foundation for children, thus creating a path for them to escape poverty in the future. With continued efforts to improve and develop these CCT programs in Nigeria, there is potential to greatly expand and improve Nigeria’s economy over time and reduce poverty in the region.

– Caroline Dunn
Photo: Flickr

Digital Cash Transfers in Cote d’IvoireCote d’Ivoire had been consumed by civil conflict at the beginning of the century. However, the conflict ended in 2011, soon after the election of Alassane Ouattara. Since then, Cote d’Ivoire has been one of the fastest-growing countries in the world. However, its growth has failed to reach large portions of the population as the country still struggles with a 46.1 percent poverty rate while an additional 17.6 percent of the population lives on the edge of poverty. In 2014, the World Bank Group started working to initiate digital cash transfers in Cote d’Ivoire to assist the poorest and most disconnected.

The Rise of Mobile Money in Cote d’Ivoire

From 2012 to 2018, the number of active mobile money users grew from less than 1 million to more than 9 million. Of note, the number of mobile cellular subscribers increased from 18.1 million to 33.81 million during the same time frame. With a population of less than 28 million, it is evident how popular the use of technology is becoming in the country. Ivorians have adapted to using mobile money for several reasons:

  • Person-to-person cash transfers in Cote d’Ivoire are easy to operate.
  • Due to high fees and the historic failure of several banks in the country, more Ivorians are turning away from licensed financial institutions. In 2017, 34 percent of Ivorians had mobile money accounts compared to 15 percent with bank accounts.
  • There is a rising trend in the digitalization of secondary school feels.
  • Migrants are digitally transferring remittances back home.
  • Paying bills digitally is growing.

How the Cash Transfer Program Works

According to the World Bank, the program operates as follows: “(i) a targeting system for cash transfers; (ii) a social protection household registry; (iii) a cash transfer payment system using digital mobile money technology; and (iv) management information system and capacity-building.”

For the actual transferring of money, the government of Cote d’Ivoire has partnered with the digital financial service organization, Orange. The Account of the Ministry of Social Protection sends a wire transfer to Orange. Then, it creates e-money and puts it into the digital accounts of the intended recipients. The recipients can then access and use their money electronically or cash-out.

Initial Constraints of the Program

Despite the widespread use of mobile devices in the country, there are a few issues with the implementation of the program. Many beneficiaries already owned mobile phones. However, others are given a device through which the program struggled to adapt. Financial literacy has been another issue as some beneficiaries are unsure about how much to withdraw and how much to save. Moreover, the lack of understanding of the importance of the PIN number resulted in some beneficiaries sharing sensitive information, thus compromising their accounts. Regulatory issues such as the requirement of a state-issued ID also created challenges in ensuring beneficiaries are eligible to continue to receive their transfers.

Successes of the Program

Peer-to-peer and community-oriented training focus on increasing knowledge surrounding the operation of devices and building awareness about security best practices with accounts. Those without a proper state-issued ID have been informed on how to obtain one. In addition, exemptions have been provided which allow beneficiaries to designate a trusted transfer recipient within the household or community. This led to 100 percent of beneficiaries receiving their payments in 2018.

By going digital, administrative and transactional costs are limited. As of April 2019, 300,000 poor individuals have benefitted from the program, more than half of whom are women. Additionally, as of the same date, 720,000 individuals have been registered with the social program’s registry. This expands the number of potential future social program beneficiaries.

Overall, the implementation of cash transfers in Cote d’Ivoire is an excellent example of how technology can assist those who are most financially vulnerable and most disconnected from the rest of society.

– Scott Boyce
Photo: Flickr