Research report · August 2025
Point-of-Sale and Purchasing Power.
Assessing whether markets, financial channels and community preferences can support cash-based assistance across Northwest Nigeria.
Overview
Cash is broadly feasible, but its value and delivery require active management.
Cash-based assistance can provide flexibility, dignity and economic efficiency. In Northwest Nigeria, however, its effectiveness depends on functional markets, accessible financial services, stable purchasing power and delivery mechanisms that can withstand climate and security disruptions.
This assessment brings those factors together to help humanitarian and development actors choose locally appropriate cash, in-kind or mixed assistance.
Key findings
Agent networks expand access while inflation erodes impact.
Markets are widely accessible
Most assessed communities reported access to functioning markets, although insecurity and fragmented supply chains affect reliability in some locations.
POS agents lead financial access
Agent banking is the most widely available channel for receiving and transferring money, especially where banks and ATMs are scarce.
Inflation weakens purchasing power
Food-price increases were widespread, making regular transfer-value reviews essential to preserve the usefulness of assistance.
Communities favour flexible support
Cash and mixed assistance were strongly preferred, while relatively few communities selected in-kind assistance alone.
Selected indicators
The enabling environment differs by state.
Market access
83–93%reported access to functioning markets across the six assessed states.POS access
63–92%reported POS agents as an available means of receiving or transferring money.Food-price pressure
63–95%reported food-price increases during the preceding three months, depending on state.Cash preference
48%preferred cash during emergencies across the assessment area.Mixed support
44%preferred a combination of cash and in-kind assistance.In-kind only
8%preferred assistance delivered exclusively as physical goods.The assessment reflects community-level perspectives rather than individual household experiences. Consult the report for state breakdowns and study limitations.
Strategic implications
Cash programming must be adaptive and context-specific.
Adjust for inflation
Monitor market prices and regularly revise transfer values to protect purchasing power.
Leverage agent networks
Work with diverse POS providers while assessing liquidity, reliability and recipient safety.
Bridge digital gaps
Combine digital transfers with agent-assisted cash-out and practical digital-literacy support.
Plan for insecurity
Use local security analysis to shape modalities, timing and distribution locations.
Keep mixed options available
Complement cash with targeted goods where markets cannot reliably supply essential items.
Strengthen inclusion
Integrate gender, protection and accessibility considerations into programme design.
Methodology
A community-level assessment of markets and financial access.
FACT conducted 513 structured key-informant interviews across 481 communities in 138 LGAs. Four interviews were planned per LGA to support geographic diversity across rural and urban settings.
The assessment examined functioning markets, assistance preferences, financial-service availability and barriers to cash programming. Findings were analysed using descriptive statistics and cross-tabulations, with selected open-ended responses summarised for context.
Because the study relied on community informants rather than household surveys or focus groups, the results describe broad community trends and may not fully represent the experiences of marginalised households.