In a significant move aimed at modernizing Nigeria’s financial ecosystem, the World Bank is set to provide a $10.5 million grant to the Central Bank of Nigeria (CBN). This initiative, part of the Finance for Development Multi-Donor Trust Fund, is designed to help the apex bank embrace cutting-edge technologies and build stronger oversight mechanisms in the fast-evolving digital finance space.
The grant, still in its planning phase, reflects a deepening collaboration between the World Bank and the CBN to address long-standing operational inefficiencies and meet the demands of today’s financial landscape.
According to details published on the World Bank’s official website and obtained by Nairametrics, the proposed CBN Technical Assistance Facility aims to integrate data science, innovation, and digital risk supervision into the bank’s regulatory operations.
This partnership isn't just a technical upgrade; it's part of a broader strategy to transform how Nigeria handles domestic payments, particularly in relation to remittance inflows and financial inclusion.
“The objective is to strengthen technology-enabled, data-driven, risk-based supervision at the CBN and improve payment infrastructure for remittances,” the World Bank noted.
The proposal, currently undergoing concept review, is structured around three major development pillars:
1. Building Institutional Strength
The project will focus on improving CBN’s internal governance and strategic readiness. Through expert advisory services, peer-to-peer collaborations with other central banks, and a revamp of internal workflows, the goal is to future-proof the institution for the digital age.
2. Enhancing Supervisory Capacity with SupTech
One of the standout features of the initiative is the adoption of Supervisory Technology (SupTech). This includes smarter tools for real-time monitoring, better data analytics, and streamlined oversight processes that will help the CBN respond to emerging risks with greater precision.
3. Modernizing Payment Systems, Especially for Remittances
Nigeria receives billions in remittances each year, but much of it flows through informal channels. This project will explore innovative ways to formalize these channels, improve security, and build trust. Plans include annual remittance household surveys and knowledge exchange sessions with other countries that have successfully digitized similar systems.
The grant aligns closely with Nigeria’s ongoing push toward digital financial services and a cashless economy. It also complements recent reforms by the CBN to improve transparency, compliance, and public trust in the financial sector.
If all goes according to plan, the project will be submitted for World Bank board approval by June 12, 2025, with the CBN leading its implementation.
This proposed grant comes on the heels of broader financial commitments to Nigeria by the World Bank. Just days earlier, the institution approved $1.08 billion across three financing operations aimed at improving education, nutrition, and economic resilience for underserved communities.
These include:
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$500 million for the NG-CARES initiative to build economic and community resilience
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$80 million for the Accelerating Nutrition Results in Nigeria (ANRIN 2.0) project
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$500 million for the HOPE-EDU initiative to improve basic education access and quality
Since the beginning of President Bola Tinubu’s administration, Nigeria has secured over $8 billion in World Bank loans. According to the Debt Management Office (DMO), Nigeria now owes the World Bank $17.32 billion—with the bulk of that (about $16.84 billion) coming from the International Development Association (IDA), which alone accounts for roughly 39.14% of Nigeria’s total external debt.
Meanwhile, another branch of the World Bank, the International Bank for Reconstruction and Development (IBRD), is owed $485.08 million, representing 1.13% of the country’s external debt profile.
The proposed $10.5 million grant from the World Bank marks a pivotal moment for Nigeria’s financial modernization efforts. With a focus on tech-driven supervision, remittance innovation, and stronger institutional frameworks, the project could significantly strengthen the Central Bank’s ability to keep pace with global financial trends.
As Nigeria continues to navigate economic challenges and a growing external debt burden, partnerships like these may prove crucial in driving sustainable, tech-enabled progress.