The World Bank has reduced the size of a planned grant to the Central Bank of Nigeria from $10.5 million to $6.80 million, with board consideration for the project now scheduled for March 27.
According to The Punch, the funding, which remains a grant and not a loan, is for the Nigerian Apex bank Technical Assistance Facility, a project designed to strengthen the apex bank’s technology-enabled, data-driven supervision of the banking sector and to improve oversight of domestic payment and remittance systems.
Updated information from the World Bank website indicates that the project has reached the decision meeting stage, the final internal stage before approval by the World Bank Group’s board.
This marks a clear advancement from its earlier concept review stage, when The PUNCH first reported the project in April 2025.
The approval date is now listed as March 27, 2026, a shift from the earlier June 12, 2025, timeline associated with the initial $10.50m grant proposal.
The revised commitment amount of $6.80m will be financed entirely through the Finance for Development Multi-Donor Trust Fund, with no involvement of the International Development Association or the International Bank for Reconstruction and Development, confirming that the project does not add to Nigeria’s external debt.
The Central Bank of Nigeria is listed as the implementing agency. According to the project overview, the facility is designed to integrate advanced tools and data science into the CBN’s regulatory and supervisory processes, addressing both long-standing and emerging risks in Nigeria’s evolving financial system.
The 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 World Bank noted on its website.
The project carries a moderate environmental and social risk rating and is expected to close on February 28, 2029. While the updated information does not state why the grant size was cut, the progression from concept review to decision meeting suggests that the project has been refined, even as its financing envelope has been adjusted.
Commenting on the reduction and changes reflected on the project page, a top source at the World Bank office in Nigeria told The PUNCH that such revisions were normal at this stage.
“Please note that projects or operations under preparation, as indicated on the World Bank website, can be subject to changes,” the source said. “Until the World Bank Board approves them, elements such as design, components, and financing envelopes may be revised or adjusted. This is normal for projects in the preparation stage.”
If approved next month, the grant will formalise a partnership focused on strengthening the CBN’s supervisory capacity through technology, data analytics, and improved oversight of the payment system in Africa’s largest economy.
The World Bank Group remains Nigeria’s largest single creditor, accounting for $19.39bn of the country’s total external debt, comprising $18.04bn from the IDA and $1.35bn from the IBRD. This represents 41.3 per cent of the country’s external debt, underscoring the bank’s dominant role in financing Nigeria’s development initiatives.
Discover more from The Source
Subscribe to get the latest posts sent to your email.
