World Bank Slashes CBN Technical Assistance Grant to $6.8m
The World Bank has reduced a proposed grant to the Central Bank of Nigeria (CBN) from $10.5m to $6.8m, with board consideration for the project now scheduled for March 27, 2026.
Updated project details reviewed by The PUNCH show that the funding, which remains a grant rather than a loan, is for the CBN Technical Assistance Facility. The project is aimed at strengthening the apex bank’s technology-enabled, data-driven supervision of the banking sector and improving oversight of domestic payment and remittance systems.
Information published on the World Bank’s website indicates that the project has progressed to the decision meeting stage, the final internal phase before approval by the World Bank Group’s board. This represents an advancement from the concept review stage first reported in April 2025.
The approval timeline has shifted from the earlier June 12, 2025 date linked to the initial $10.5m proposal to March 27, 2026. The revised $6.8m commitment will be fully financed through the Finance for Development Multi-Donor Trust Fund, with no funding from the International Development Association or the International Bank for Reconstruction and Development, meaning it will 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 will support the integration of advanced technology and data science into the CBN’s regulatory and supervisory processes, helping the bank address both existing and emerging risks in Nigeria’s financial system.
The project’s development objective is to strengthen the CBN’s technology-driven oversight of the banking sector and deepen understanding of Nigeria’s payment and remittance systems. It carries a moderate environmental and social risk rating and is expected to close on February 28, 2029.
While no official reason was provided for the reduction in the grant size, a senior source at the World Bank office in Nigeria told sources that such changes are normal during project preparation.
“Projects under preparation can be subject to changes in design, components, and financing until they are approved by the World Bank Board,” the source said.
If approved, the grant will formalise a partnership focused on enhancing the CBN’s supervisory capacity through technology, data analytics, and improved payment system oversight.
The World Bank Group remains Nigeria’s largest single creditor, accounting for $19.39bn, or 41.3 per cent, of the country’s external debt. Between 2023 and 2025, World Bank loans to Nigeria are projected to reach $9.65bn, rising to about $9.77bn when grants are included, according to earlier reports.
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