This study examines the targeting efficiency of Nigeria’s Household Upliftment Programme (HUP) in Osun and Oyo States, focusing on the extent and cost implications of inclusion and exclusion errors. Using household-level data ranked by multidimensional deprivation scores, the study applies a decile-based classification to assess targeting outcomes across regions and local government areas (LGAs). About 45.27% of beneficiary households were ineligible, indicating substantial inclusion errors that generated a monthly leakage of ₦550,030.50. In contrast, 64.05% of eligible households were excluded from the programme, resulting in a monthly under-coverage cost of ₦1,184,925.00. Exclusion errors were particularly pronounced in the least poor LGAs, where nearly four-fifths of poor and vulnerable households were omitted. The analysis highlights that the humanitarian and welfare costs of exclusion outweigh the fiscal benefits of inclusion, reaffirming earlier evidence from the global social protection literature. Although the HUP demonstrates success in reaching some poor households, improving the accuracy of proxy-means targeting and enhancing data validation mechanisms remain essential for reducing mistargeting and optimizing the social returns of cash transfer programmes in Nigeria. This study contributes to the social protection literature by empirically quantifying the magnitude and fiscal cost of inclusion and exclusion errors in Nigeria’s Household Upliftment Programme using a multidimensional deprivation framework and subnational comparative analysis across poverty-ranked LGAs in Osun and Oyo States.
| Published in | American Journal of Management Science and Engineering (Volume 11, Issue 1) |
| DOI | 10.11648/j.ajmse.20261101.13 |
| Page(s) | 26-34 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2026. Published by Science Publishing Group |
Targeting Efficiency, Cash Transfer, Social Protection, Nigeria
Dimension | Indicator | Description | SDG | Criteria for Deprivation cut-off | Weight |
|---|---|---|---|---|---|
Health | Food insecurity | Food Insecurity Experience in the last 30 days | SDG 2 | According to the Food Insecurity Experience Scale (FIES), the household is severely food insecure (deprived) if the response to at least 7 questions is affirmative (≥7 answers affirmatively) |
|
Child mortality | Death of under five-year-old child(ren) since 2017 | SDG 3 | If the household has experienced at least one natural or disease-related child death in the household, then D = 1, and 0 otherwise. |
| |
Education | Number of years of education | Years of formal education of the household head |
| If the head’s highest class is not more than six years of formal education (≤ 6 years), then D = 1, and 0 otherwise. |
|
Reading and Writing | If the household head cannot read and write in any language | SDG 4 | Deprived if the head cannot read and write in any language, then D = 1, and 0 otherwise |
| |
Living Standard | Cooking fuel | Household cooks with dung, agricultural crop, shrubs, wood, charcoal or coal etc. | SDG 7 | Deprived if household is using any of these as cooking fuel: wood, charcoal, animal dung, agricultural crop residue, coal, straw as main fuels for cooking, as opposed to electricity, liquefied petroleum gas, natural gas, biogas, or kerosene, then D = 1, and 0 otherwise. |
|
Sanitation | A household is non-deprived when there is access to improved sanitation if there is a composting toilet, ventilated improved pit, flush toilet, or latrine, and they are not shared. Deprived if otherwise | SDG 11 | Deprived if the household’s sanitation facility is shared with others, then D = 1, and 0 otherwise. |
| |
Drinking Water | Access to safe drinking water facility | SDG 6 | Deprived if source of water is not piped, then D = 1, and 0 otherwise |
| |
Electricity | If household lacks access to electricity. | SDG 7 | Deprived if on-grid electric connection is absent, then D = 1, and 0 otherwise |
| |
Housing | If the roof or walls are made of crude materials, or if the floor is made of natural materials, the housing is inadequate | SDG 11 | Deprived if the floor is made of mud, clay, earth, sand, or dung; if the wall or roof of the dwelling is made of natural materials like sticks, cane, palm/trunks, sod/mud, dirt, grass/reeds, thatch, bamboo, or rudimentary materials like cardboard, plastic/polythene sheeting, bamboo with mud or stone with mud, loosely packed stones, adobe that is not covered, raw or repurposed wood, plywood, cardboard, unburned brick, or canvas or tent, then D = 1, and 0 otherwise |
| |
Asset ownership | Not owning a car or truck, but having one of the following assets: a radio, TV, phone, computer, animal cart, bicycle, motorbike, or refrigerator. | SDG 1 | Deprived if household does not own more than one of these assets: radio, TV, telephone, computer, animal cart, bicycle, motorbike, or refrigerator, and does not own a car or truck, then D = 1, and 0 otherwise |
|
Indicators (%) | Indicators Description | Calculation | |
|---|---|---|---|
a. | Inclusion error | The proportion of HUP beneficiary households, despite being ineligible | The number of ineligible beneficiary households to the total number of HUP beneficiary households |
b. | Exclusion error | The proportion of non-beneficiary households in the 1st -6th deciles | The number of eligible non-beneficiary households, to the total number of eligible households |
c. | Successful targeting | The proportion of HUP beneficiary households in the 1st-6th deciles | The number of eligible HUP beneficiary households, as a percentage of the total number of eligible households |
d. | Successful exclusion | The proportion of the non-beneficiary households in the 7th -10th deciles | The ratio of non-beneficiary households in the 7th-10th deciles to the total number of households in the 7th-10th deciles |
Variable | 2017 (%) |
|---|---|
Age of Household head (Years) | |
≤ 20 | 1.30 |
21 - 40 | 33.44 |
41 - 60 | 49.51 |
61 - 80 | 14.45 |
>80 | 1.30 |
Mean | 42.00±19.14 |
Minimum | 19.00 |
Maximum | 84.00 |
Age of Household Caregiver/Alternate (Years) | |
≤ 20 | 4.04 |
21 - 40 | 42.37 |
41 - 60 | 39.45 |
61 - 80 | 12.82 |
>80 | 1.30 |
Mean | 37.11±15.03 |
Minimum | 17.00 |
Maximum | 73.00 |
Sex of Household Head | |
Male | 56.49 |
Female | 43.51 |
Sex of Caregiver | |
Male | 12.34 |
Female | 87.66 |
Marital Status of Household Head | |
Single | 1.14 |
Married Monogamy | 57.14 |
Married Polygam- | 20.94 |
Divorced/Separated | 3.73 |
Widowed | 17.05 |
Household size | |
≤ 4 | 33.28 |
5-8 | 57.95 |
9-12 | 6.82 |
13-16 | 0.97 |
17-20 | 0.97 |
21-24 | 0.00 |
Mean | 5.61±2.78 |
Minimum | 2.00 |
Maximum | |
Years of Formal Education | |
None | 28.73 |
1-6 | 30.19 |
7-12 | 37.34 |
13-16 | 3.73 |
>16.00 | 0.00 |
Mean | 6.74±5.04 |
Minimum | 0.00 |
Maximum | 16.00 |
Farm Size (Plots) | |
0.00 | 56.82 |
0.1 -1.00 | 16.07 |
1.1 - 2.00 | 18.99 |
2.1 - 3.00 | 4.71 |
>3.00 | 3.41 |
Mean | 0.76±1.07 |
Minimum | 0.00 |
Maximum | 4.00 |
Household Monthly Income (Naira) | |
0.00 | 7.95 |
1.00-15,000.00 | 59.42 |
15,001 -30,000 | 22.40 |
30,001 -45,000 | 4.38 |
45,001-60,000 | 4.55 |
60,0001-75,000 | 0.65 |
75,001-90,000 | 0.65 |
>90,000.00 | 0.00 |
Mean | 15,093.83±14,644.74 |
Minimum | 0.00 |
Maximum | 90,000.00 |
Monthly Remittance (Naira) | |
0.00 | 64.29 |
1-2,000 | 21.27 |
2,001 -4,000 | 9.42 |
4,001 -6,000 | 4.71 |
>6,000.00 | 0.32 |
Mean | 866.15± 1440.45 |
Primary Occupation of Household Head | |
Farming | 17.69 |
Trading | 56.33 |
Crafts/ artisan | 13.64 |
Civil Service | 0.32 |
Private Employment & Others | 4.87 |
None | 7.14 |
Experience in Primary Occupation (years) | |
<1.00 | 25.49 |
1-10 | 43.51 |
11-20 | 16.56 |
21-30 | 8.28 |
31-40 | 3.08 |
> 40 | 3.08 |
Mean | 9.49±11.29 |
Minimum | 0.00 |
Maximum | 50.00 |
Indicator | Regional (%) | State | LGA Rank | ||||
|---|---|---|---|---|---|---|---|
Osun (%) | Oyo (%) | Poorest (%) | Moderately Poor (%) | Least Poor (%) | |||
a. | Inclusion Error | 45.27 | 48.36 | 42.15 | 32.07 | 49.37 | 54.37 |
b. | Exclusion Error | 64.05 | 65.39 | 62.76 | 62.30 | 50.24 | 79.61 |
c. | Successful Targeting | 35.95 | 34.62 | 37.23 | 37.69 | 52.63 | 20.39 |
d. | Successful Exclusion | 55.28 | 61.18 | 49.38 | 55.26 | 52.44 | 57.95 |
HUP | Household Upliftment Programme |
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APA Style
Adewale, A. A. (2026). Targeting Efficiency of the Household Upliftment Programme in Southwestern Nigeria. American Journal of Management Science and Engineering, 11(1), 26-34. https://doi.org/10.11648/j.ajmse.20261101.13
ACS Style
Adewale, A. A. Targeting Efficiency of the Household Upliftment Programme in Southwestern Nigeria. Am. J. Manag. Sci. Eng. 2026, 11(1), 26-34. doi: 10.11648/j.ajmse.20261101.13
AMA Style
Adewale AA. Targeting Efficiency of the Household Upliftment Programme in Southwestern Nigeria. Am J Manag Sci Eng. 2026;11(1):26-34. doi: 10.11648/j.ajmse.20261101.13
@article{10.11648/j.ajmse.20261101.13,
author = {Ayoola Abosede Adewale},
title = {Targeting Efficiency of the Household Upliftment Programme in Southwestern Nigeria},
journal = {American Journal of Management Science and Engineering},
volume = {11},
number = {1},
pages = {26-34},
doi = {10.11648/j.ajmse.20261101.13},
url = {https://doi.org/10.11648/j.ajmse.20261101.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20261101.13},
abstract = {This study examines the targeting efficiency of Nigeria’s Household Upliftment Programme (HUP) in Osun and Oyo States, focusing on the extent and cost implications of inclusion and exclusion errors. Using household-level data ranked by multidimensional deprivation scores, the study applies a decile-based classification to assess targeting outcomes across regions and local government areas (LGAs). About 45.27% of beneficiary households were ineligible, indicating substantial inclusion errors that generated a monthly leakage of ₦550,030.50. In contrast, 64.05% of eligible households were excluded from the programme, resulting in a monthly under-coverage cost of ₦1,184,925.00. Exclusion errors were particularly pronounced in the least poor LGAs, where nearly four-fifths of poor and vulnerable households were omitted. The analysis highlights that the humanitarian and welfare costs of exclusion outweigh the fiscal benefits of inclusion, reaffirming earlier evidence from the global social protection literature. Although the HUP demonstrates success in reaching some poor households, improving the accuracy of proxy-means targeting and enhancing data validation mechanisms remain essential for reducing mistargeting and optimizing the social returns of cash transfer programmes in Nigeria. This study contributes to the social protection literature by empirically quantifying the magnitude and fiscal cost of inclusion and exclusion errors in Nigeria’s Household Upliftment Programme using a multidimensional deprivation framework and subnational comparative analysis across poverty-ranked LGAs in Osun and Oyo States.},
year = {2026}
}
TY - JOUR T1 - Targeting Efficiency of the Household Upliftment Programme in Southwestern Nigeria AU - Ayoola Abosede Adewale Y1 - 2026/02/20 PY - 2026 N1 - https://doi.org/10.11648/j.ajmse.20261101.13 DO - 10.11648/j.ajmse.20261101.13 T2 - American Journal of Management Science and Engineering JF - American Journal of Management Science and Engineering JO - American Journal of Management Science and Engineering SP - 26 EP - 34 PB - Science Publishing Group SN - 2575-1379 UR - https://doi.org/10.11648/j.ajmse.20261101.13 AB - This study examines the targeting efficiency of Nigeria’s Household Upliftment Programme (HUP) in Osun and Oyo States, focusing on the extent and cost implications of inclusion and exclusion errors. Using household-level data ranked by multidimensional deprivation scores, the study applies a decile-based classification to assess targeting outcomes across regions and local government areas (LGAs). About 45.27% of beneficiary households were ineligible, indicating substantial inclusion errors that generated a monthly leakage of ₦550,030.50. In contrast, 64.05% of eligible households were excluded from the programme, resulting in a monthly under-coverage cost of ₦1,184,925.00. Exclusion errors were particularly pronounced in the least poor LGAs, where nearly four-fifths of poor and vulnerable households were omitted. The analysis highlights that the humanitarian and welfare costs of exclusion outweigh the fiscal benefits of inclusion, reaffirming earlier evidence from the global social protection literature. Although the HUP demonstrates success in reaching some poor households, improving the accuracy of proxy-means targeting and enhancing data validation mechanisms remain essential for reducing mistargeting and optimizing the social returns of cash transfer programmes in Nigeria. This study contributes to the social protection literature by empirically quantifying the magnitude and fiscal cost of inclusion and exclusion errors in Nigeria’s Household Upliftment Programme using a multidimensional deprivation framework and subnational comparative analysis across poverty-ranked LGAs in Osun and Oyo States. VL - 11 IS - 1 ER -