The Latin American and Nigerian Conditional Cash Transfer Experience: A Comparative Analysis

Abstract

Despite the recent economic growth in Nigeria, poverty remains a social problem. One of the strategies employed by the Nigerian government and some development partners towards solving this problem is the deployment of social protection instruments, such as Conditional Cash Transfers (CCTs), which aim at stemming the tide of poverty and vulnerability. This study uses the secondary research method to examine the extent to which the Latin American CCT model influenced the design and operation of the Nigerian CCT programme. The policy diffusion model adopted for the study posits that the success of CCT programmes in Latin America has stimulated its extension to many developing countries outside the region. The findings from the review of selected literature explain the rationale for CCTs as short-term poverty reduction and long-term human capital development. Admittedly, a nexus exists between the Latin American and Nigerian strategies. Yet the study concludes that the Latin American model cannot adequately serve as a blueprint for the Nigeria strategy, given that underlying conditions in upper middle-income Latin American countries are clearly different from those present in low income or lower middle-income African countries like Nigeria. The study recommends urgent implementation of the National Social Protection Policy; a review of the current CCT programme in Nigeria every two years and extensive research into social protection strategies.