Cash transfer increases household savings and food security – World Bank

New research from the World Bank has found that conditional cash transfers from the federal government since 2016 have led to increases in household savings and food security, as well as better access to agricultural land and livestock, among other things.

The report also noted that beneficiary households were most likely to refrain from explicitly using their income for household consumption and save longer.

It further said that program beneficiaries reported improved decision-making autonomy and freedom of movement.

It stated: “We also find improvements in caregivers’ self-reported happiness, autonomy in making decisions about how to spend their own income, and freedom of movement.

“Households are significantly more likely to save the longer they receive cash, and to move away from using cash exclusively for household consumption.”

However, the research shows that the program has little impact on household consumption, financial inclusion or employment of beneficiaries, especially women.

It was pointed out that apart from the limited effect on household consumption, this had no real impact on women’s employment.

The World Bank study also found that there was no statistical evidence showing that the program promoted financial inclusion.

“Nevertheless, the limited impacts on household consumption and women’s employment suggest that there remains scope for additional livelihood support intervention to generate sustainable improvements in household self-sufficiency,” it added.

The World Bank has therefore recommended an additional livelihood support intervention along with the cash transfer programme.