The World Bank is planning a $10.50 million grant to Nigeria aimed at boosting the technical capacity of the Central Bank of Nigeria (CBN) and modernising the country’s domestic payment infrastructure.
The grant is being provided under the Finance for Development Multi-Donor Trust Fund and represents a partnership between the World Bank and the CBN.
Nairametrics obtained the information from the World Bank website, which revealed that the proposed CBN Technical Assistance Facility aims to integrate innovative technologies and data science into the CBN’s supervisory processes.
This initiative is expected to help the apex bank address both long-standing and emerging challenges within Nigeria’s evolving financial landscape while also bolstering the infrastructure for remittance payments.
According to the World Bank, the primary objective is “to strengthen technology-enabled, data-driven risk-based supervision at the CBN and improve domestic payment infrastructure for remittances in Nigeria.”
The partnership between the World Bank and the CBN is seen as a strategic move to enhance the apex bank’s capacity to monitor and regulate the financial sector more efficiently, using advanced technological solutions and data-driven methods.
Focus areas for the project
The project, currently at the concept review stage, is structured around three key areas:
- Strengthening institutional capacity: The project aims to equip the CBN with the necessary tools to keep pace with technological advancements. This will involve establishing a robust governance framework, expert advisory support, peer-to-peer central bank exchanges, and updating internal processes to meet digital era demands.
- Enhancing supervisory capacity: The project will focus on improving CBN’s supervisory functions by incorporating modern technical solutions, including Supervisory Technology (SupTech) systems. This will enhance data accuracy, operational efficiency, and risk-based supervision.
- Modernising payment systems for remittances: To improve the safety and reliability of domestic payment systems, the project will explore innovative ways to channel informal remittance flows into formal systems. This includes conducting annual surveys on remittance households and fostering peer-to-peer knowledge sharing.
The project aligns with the government’s commitment to a cashless economy and the growing adoption of digital financial services. It is scheduled for board presentation approval on June 12, 2025, with the Central Bank of Nigeria as the implementing agency.
What you should know
The World Bank earlier approved three financing operations totalling $1.08 billion to support education, nutrition, and economic resilience in Nigeria.
- According to a statement on the bank’s website on Wednesday, the concessional loans aim to improve the quality of education, build household and community resilience, and enhance nutrition for underserved groups.
- The approved operations include $500 million in additional financing for the Community Action for Resilience and Economic Stimulus (NG-CARES) Programme, $80 million for Accelerating Nutrition Results in Nigeria (ANRIN 2.0), and $500 million for the Hope for Quality Basic Education for All (HOPE-EDU) initiative.
- So far, about 13 different loan projects have been approved by the World Bank under the administration of President Bola Tinubu.
- The Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $8.03 billion from the World Bank in less than two years.
- According to data from the external debt report released by the Debt Management Office (DMO), the World Bank’s share of Nigeria’s debt totals $17.32 billion, with the majority owed to the International Development Association (IDA), which accounts for $16.84 billion, which represents 39.14% of Nigeria’s total external debt.
The International Bank for Reconstruction and Development (IBRD), another arm of the World Bank, is owed $485.08 million, or 1.13%.
