The World Bank has reduced a proposed grant to the Central Bank of Nigeria from $10.5 million to $6.8 million, with the project now scheduled for board consideration on March 27, according to updated project details reviewed by The Punch.
The funding, which remains a grant rather than a loan, is earmarked for the CBN Technical Assistance Facility.
The initiative is aimed at strengthening the apex bank’s technology-driven and data-led supervision of Nigeria’s banking sector, while also enhancing oversight of domestic payment and remittance systems.
Information published on the World Bank’s website shows that the project has progressed to the decision meeting stage, the final internal step before approval by the World Bank Group’s board.
This represents a significant move forward from its earlier concept review phase, first reported in April 2025.
The project’s expected approval date has now been shifted to March 27, 2026, replacing the earlier June 12, 2025 timeline that accompanied the original $10.5 million proposal.
Under the revised plan, the entire $6.8 million grant will be funded through the Finance for Development Multi-Donor Trust Fund.
Neither the International Development Association nor the International Bank for Reconstruction and Development is involved, confirming that the project will not contribute to Nigeria’s external debt stock.
Don’t Miss This: Dangote Group, NNPC deepen gas partnership to support expansion projects
The Central Bank of Nigeria is listed as the implementing agency.
According to the project summary, the facility will deploy advanced digital tools and data science to improve regulatory and supervisory functions, addressing both existing and emerging risks within Nigeria’s financial system.
The World Bank stated that the project’s objective is to strengthen the CBN’s technology-enabled oversight of the banking sector and deepen its understanding of payment and remittance systems across the country.
The initiative carries a moderate environmental and social risk rating and is expected to close on February 28, 2029.
Although the updated documentation does not explain the reduction in grant size, the project’s advancement suggests refinements were made during preparation.
A senior source at the World Bank’s Nigeria office told journalist that such changes are typical at this stage of project development, noting that financing structures, design elements, and components often evolve before final board approval.
If approved next month, the grant will formalise a partnership focused on strengthening the CBN’s supervisory capacity through improved technology, data analytics, and payment system oversight.
Despite the grant status of this project, the World Bank remains Nigeria’s largest external creditor, accounting for $19.39 billion—about 41.3 percent—of the country’s total external debt. This includes $18.04 billion from the IDA and $1.35 billion from the IBRD.
Previous reports reveal that World Bank loans to Nigeria between 2023 and 2025 are expected to reach $9.65 billion by the end of this year, rising to approximately $9.77 billion when grants are included.
