By Anastasia John E.
The World Bank has clarified that the planned provision of $10.50 million to the Central Bank of Nigeria (CBN) is in the form of a grant, not a loan, as initially indicated on its website.
A source within the World Bank, speaking anonymously to Sunday PUNCH, explained that the $10.50 million is being provided through the Finance for Development Multi-Donor Trust Fund, representing a collaborative partnership between the World Bank and the CBN.
Earlier reports suggested that Nigeria had approached the World Bank for a $10.50 million loan to bolster the CBN’s technical capabilities and modernize the nation’s domestic payment infrastructure. This was based on information presented on the World Bank’s website, which had listed the CBN as a borrower for the project.
However, following the clarification from the World Bank source, Sunday PUNCH independently verified the information on the website, which now confirms the $10.50 million is designated as a grant to support the initiative. This funding is not a financing commitment under the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) of the World Bank, which are the typical lending arms for Nigeria.
The World Bank source emphasized that this grant is a collaborative effort aimed at enhancing the CBN’s capacity for technology-enabled, data-driven, risk-based supervision and improving domestic payment infrastructure, with a particular focus on remittances.
According to previously available information on the World Bank website, the proposed CBN Technical Assistance Facility is designed to support the integration of innovative technologies into the CBN’s supervisory framework. The initiative is expected to assist the apex bank in addressing both long-standing and emerging challenges within Nigeria’s rapidly evolving financial sector, while also improving the safety and reliability of domestic payment systems, especially for remittance flows.
The project, currently in its concept review stage with a commitment amount of $10.50 million, is scheduled for board presentation approval on June 12, 2025. The CBN will serve as the implementing agency, working in close collaboration with the World Bank to ensure the successful execution of the project.
