Revised funding targets data-driven banking supervision and payment system oversight without adding to Nigeria’s external debt….
The World Bank has reduced a planned grant to the Central Bank of Nigeria from $10.50m to $6.80m, with board consideration for the project now fixed for March 27, according to updated project details.
Despite the reduction, the funding remains a grant rather than a loan and is designated for the CBN Technical Assistance Facility, an initiative aimed at strengthening the apex bank’s technology-driven and data-based supervision of Nigeria’s banking sector, as well as improving oversight of domestic payment and remittance systems.
Latest information published on the World Bank’s website shows the project has progressed to the decision meeting stage, the final internal phase before presentation to the World Bank Group’s board for approval. This represents a significant step forward from its earlier concept review stage.
The approval date is now listed as March 27, 2026, replacing the earlier June 12, 2025 timeline associated with the initial $10.50m proposal.
The revised $6.80m commitment will be financed entirely through the Finance for Development Multi-Donor Trust Fund, with no contribution from either the International Development Association or the International Bank for Reconstruction and Development, confirming that the project will not increase Nigeria’s external debt burden.
The Central Bank of Nigeria is identified as the implementing agency. According to the project description, the facility is designed to integrate advanced technological tools and data science into the CBN’s regulatory and supervisory framework, addressing both existing and emerging risks within Nigeria’s rapidly evolving financial system.
The World Bank stated that the project’s development objective is “to strengthen CBN’s technology-enabled and data-driven oversight of the banking sector and deepen understanding of payment and remittance systems in Nigeria.”
The project carries a moderate environmental and social risk rating and is expected to close on February 28, 2029.
Although the updated documentation does not specify the reason for the reduction in grant size, the progression from concept review to decision meeting suggests that the project has undergone refinements, even as the financing envelope was adjusted.
The World Bank Group remains Nigeria’s largest single external creditor, accounting for $19.39bn of the country’s total external debt. This includes $18.04bn owed to the International Development Association and $1.35bn to the International Bank for Reconstruction and Development, representing about 41.3 percent of Nigeria’s external debt stock.
World Bank lending to Nigeria between 2023 and 2025 is projected to reach $9.65bn by the end of this year as approvals, negotiations and disbursements continue across multiple sectors.
The figure covers loans from both the International Development Association and the International Bank for Reconstruction and Development. When grants are included, total World Bank financial support to Nigeria over the three-year period rises to approximately $9.77bn.
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