The World Bank has officially clarified that the $10.50 million earmarked for the Central Bank of Nigeria (CBN) is not a loan but a grant under its development initiatives.
A source within the World Bank, who requested anonymity, confirmed this to our correspondent on Friday, explaining that the funds are being disbursed through the Finance for Development Multi-Donor Trust Fund as part of an existing collaboration between the global lender and the Nigerian apex bank.
Earlier reports had suggested that the Federal Government approached the World Bank for a $10.50 million loan aimed at boosting the technical capacity of the CBN and overhauling the nation’s domestic payment systems.
This perception was based on information from the World Bank’s website, which appeared to list the CBN as a borrower under the project.
However, following clarification from the World Bank insider, Sunday PUNCH was able to independently confirm from the institution’s website that the stated sum is, in fact, categorized as a grant meant to finance the project.
The financing is not being provided under the framework of the International Development Association (IDA) or the International Bank for Reconstruction and Development (IBRD)—two of the main arms through which the World Bank typically extends credit to Nigeria.
According to the World Bank, the grant forms part of a joint effort with the CBN to bolster the central bank’s ability to conduct risk-based, data-driven supervision using modern technology, while also enhancing domestic payment infrastructure—particularly in relation to remittance flows.
The initiative, officially referred to as the “CBN Technical Assistance Facility,” is designed to support the integration of cutting-edge technology within the bank’s supervisory architecture.
The project is intended to help the CBN tackle both persistent and emerging regulatory and operational challenges within Nigeria’s dynamic financial environment. A key focus of the initiative is the improvement of the country’s domestic payment infrastructure to ensure the efficiency, safety, and reliability of remittance transactions.
Currently at the concept review stage, the project will concentrate on fortifying the institutional capacity of the CBN, boosting supervisory processes through the use of innovative digital tools, and updating payment systems infrastructure.
With a total funding commitment of $10.50 million, the initiative is scheduled to be presented for board approval on June 12, 2025.
The Central Bank of Nigeria will serve as the implementing agency for the project, working in close coordination with the World Bank to ensure effective execution and outcomes aligned with the project’s objectives.
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