Attachments
Summary
This case study summarizes an analysis conducted by the Christian Rural and Urban Development Association of Nigeria (CRUDAN) to assess the cost-efficiency of a multi-purpose cash assistance (MPCA) program implemented in Nigeria in 2022.
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The program’s Cost Transfer Ratio was found to be $0.98, meaning it cost about $0.98 in non-transfer delivery costs (e.g., targeting, transfer fees, monitoring, etc.) for every one dollar delivered to clients. This is in line with other cash programs in West Africa implemented by international NGOs.
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The relatively large program scale (i.e., 1,080 households) enabled high program efficiency, showing that national NGOs can achieve high Value for Money, when funded at the same scale as international NGOs typically are.
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Efficiency could be further increased if the humanitarian community is able to harmonize each implementing organization’s cash transfer size to cover all basic needs in each distribution and coordinate for existing client lists to be shared and reused among implementing organizations.
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At the same program scale and context, cash distribution can be more efficient (i.e., 18 percent lower cost per dollar of value distributed) than non-food item (NFI) distribution, and offer better value and choice for recipient households where goods are available in local markets and when paired with community sensitization.