The World Bank has clarified that the $10.50 million financing planned for the Central Bank of Nigeria (CBN) is a grant, not a loan.
A source at the World Bank, who spoke anonymously, stated that the funding is being provided under the Finance for Development Multi-Donor Trust Fund as part of a partnership with the CBN.
Earlier reports had suggested that Nigeria approached the World Bank for a $10.50 million loan to boost the CBN’s technical capacity and modernise domestic payment infrastructure. This was due to the World Bank’s website listing the CBN as a "borrower" on the project.
However, according to Sunday PUNCH, the information was independently verified, confirming that the amount is indeed a grant and not listed under the International Development Association (IDA) or the International Bank for Reconstruction and Development (IBRD), which are the usual channels through which Nigeria receives loans.
The grant is part of a joint initiative aimed at strengthening the CBN’s capacity for technology-enabled, data-driven, risk-based supervision and improving domestic payment systems, especially those related to remittances.
According to details from the World Bank’s website, the proposed CBN Technical Assistance Facility is designed to support the integration of innovative technologies into the apex bank’s supervisory processes. The initiative targets both long-standing and emerging challenges within Nigeria’s evolving financial system.
The project, currently at the concept review stage, will focus on enhancing institutional capacity, improving supervisory functions with advanced technology, and modernising payment systems to boost reliability and safety—particularly for remittance flows.
The $10.50 million grant is scheduled for board approval on June 12, 2025. The CBN will act as the implementing agency, collaborating closely with the World Bank to ensure effective execution
