FG Deploys AI to Identify Poor Nigerians, Expands Cash Transfer Scheme to 19.7 Million Beneficiaries

In a bold step toward modernizing social welfare, Nigeria’s federal government has deployed Artificial Intelligence to identify vulnerable citizens for its Conditional Cash Transfer program, aiming to improve transparency and efficiency nationwide.

The initiative, which leverages telecom data and AI for accurate targeting, marks a significant shift toward cashless payments, digital governance, and data-driven poverty reduction strategies in Nigeria.

In a groundbreaking move to reform social welfare delivery, the Federal Government of Nigeria has introduced the use of Artificial Intelligence (AI) to identify economically vulnerable citizens for its Conditional Cash Transfer (CCT) program. The initiative, aimed at deepening transparency and improving efficiency, is a major leap toward modernizing poverty alleviation strategies in the country.

Minister of Humanitarian Affairs and Poverty Reduction, Nentawe Goshwe Yilwatda, announced the development during a recent interview with Arise News. He explained that the government is leveraging AI technology, coupled with telecommunications data, to expand and verify the National Social Register (NSR), which now includes a total of 19.7 million beneficiaries. This figure features 6.5 million newly identified urban poor individuals.

“AI was deployed to generate a list of poor individuals within communities using telecommunications data linked to identified phone numbers,” Yilwatda said.

The minister highlighted that beyond just pinpointing the needy, AI has made it possible to access relevant financial information of prospective beneficiaries, such as their bank account and mobile contact details. This innovation allows for a more seamless and accurate selection process.

“You can now find their phone numbers, account numbers, and financial service details. This was instrumental in identifying an additional 6.5 million urban poor who have now been added to the register,” he added.

In line with President Bola Tinubu’s directive, the CCT scheme has also shifted to a fully cashless payment model. The move is intended to curb corruption, prevent diversion of funds, and ensure direct delivery to recipients. According to Yilwatda, “The President made it clear that cash payments must be discontinued. All disbursements are now done through verified bank accounts.”

To ensure data credibility and fairness in the distribution of funds, the federal government has partnered with the World Bank and independent verifiers, including civil society organisations. These bodies have played a critical role in vetting the NSR entries. The minister noted that 94 per cent of registered beneficiaries have been physically verified, while the remaining six per cent were unreachable due to issues like inactive phone numbers or relocation.

The AI-powered initiative comes at a time when the nation is grappling with the economic challenges posed by subsidy removals and foreign exchange reforms. According to a recent report, around 2.3 million households have been cleared to begin receiving N75,000 under the revamped cash transfer initiative.

This digital transformation of social welfare services signals a turning point in Nigeria’s approach to poverty reduction. It underscores a broader commitment to using technology and data to drive policy decisions, improve service delivery, and build public trust.

As the government continues to refine and expand the program, many see the AI integration as a potential model for other sectors and countries facing similar challenges. The move not only promises better targeting and accountability but also aligns Nigeria’s social policy with global standards in digital governance.