Conditional Cash Transfer and Vulnerability to Poverty in Rural Southwestern Nigeria

Abstract

Conditional Cash Transfer (CCT) schemes have become a key policy tool for reducing rural poverty and strengthening household resilience in Nigeria. This study investigated conditional cash transfer and vulnerability to poverty in rural Southwestern Nigeria. The objective of the study encompasses purposes for which households use the provided cash resources, participation in CCT activities and vulnerability to poverty of rural households. The research design for this study was a mixed method design. The study employed an extensive six-stage sampling approach to collect data from 242 household beneficiaries and 242 non-beneficiaries of CCTs. Data were analyzed using descriptive and inferential statistic at p =0.05. The findings reveal that a majority of CCT beneficiaries (99.2%) allocate their cash stipends towards essential needs such as food and cooperative savings. Additionally, 75.2% of beneficiaries use the funds for educational expenses while only 48.4% of beneficiaries invest in agricultural activities. Participation in CCT activities, particularly in life skills training and empowerment programs, was strong, with 76.4% of beneficiaries actively engaged. The study identified a significant correlation between beneficiaries' participation in CCT activities and reduced vulnerability to poverty, as beneficiaries experience a lower rate of poverty-related challenges compared to non-beneficiaries (r=-0.257**, p≤0.05) and a statistically significant difference in poverty vulnerability between beneficiaries and non-beneficiaries, underscoring the effectiveness of CCT in reducing household poverty (t=7.312*, p<0.05). However, while CCT has contributed to immediate poverty alleviation, challenges remain in sustaining long-term improvements, particularly in agriculture and debt repayment. The study recommends expanding CCT coverage to non-beneficiaries, enhancing agricultural support, and strengthening educational and health-related components to ensure sustainable poverty reduction.