Impact of unconditional cash transfers on household livelihood outcomes in Nigeria

Abstract

Abstract In 2018, Nigeria began the implementation of a cash transfer programme (CCT) for poor and vulnerable people. We evaluated the impact of cash transfer on household livelihood outcomes in Nigeria. Using multistage cluster sampling methodology, beneficiaries and non-beneficiaries within the same locality were randomly selected to participate in a survey to assess the impact of cash transfer on food security and food diversity. When gender, marital status, educational status, and age were controlled, beneficiaries were about three times more likely than non-beneficiaries to report experiencing little or no hunger. Children 0–59 months of beneficiaries were twice likely to have at least three meals a day compared to children of non-beneficiaries. Difference in differences regression analysis showed that on the average, beneficiaries of the cash transfer significantly consumed more diverse food than non-beneficiaries. Beneficiaries of the CCT experienced fewer episodes of severe hunger, have more meal frequency, and higher household dietary diversity than non-beneficiaries. This shows that the CCT programme is effective and can directly mitigate adverse effects of malnutrition with its long-term negative impact on children and thus must be expanded to more vulnerable people across all states in Nigeria.