The World Bank has reduced the size of a planned grant to the Central Bank of Nigeria (CBN) from US$10.5 million to US$6.8 million, according to updated project information reviewed this week, with board consideration for the facility now scheduled for March 27.
The funding, which remains a grant rather than a loan, is intended to support a technical assistance programme aimed at strengthening the Nigerian central bank’s supervisory and regulatory capacity through technology and data-driven tools.
The project, known as the CBN Technical Assistance Facility, is designed to enhance the apex bank’s oversight of the banking sector, as well as improve supervision of domestic payment and remittance systems in Africa’s largest economy.
Updated information published on the World Bank’s website shows that the project has progressed to the “decision meeting” stage, the final internal review before submission to the World Bank Group’s board for approval. This marks a significant step forward from the earlier concept review phase, when the project was first disclosed in April 2025.
The revised approval date is now listed as March 27, 2026, compared with the earlier June 12, 2025 timeline associated with the initial US$10.5 million proposal.
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Under the revised plan, the $6.8 million grant will be financed entirely through the Finance for Development Multi-Donor Trust Fund. The World Bank confirmed that neither its concessional lending arm, the International Development Association (IDA), nor the International Bank for Reconstruction and Development (IBRD) is involved in the financing, meaning the project will not add to Nigeria’s external debt burden.
The Central Bank of Nigeria is listed as the implementing agency.
According to the project description, the facility aims to integrate advanced technology, data science and analytical tools into the CBN’s regulatory and supervisory processes. The goal is to improve the identification and management of both long-standing and emerging risks within Nigeria’s rapidly 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 said in its project overview.
The initiative carries a “moderate” environmental and social risk rating and is expected to close on February 28, 2029.
While the updated project documents do not explain why the grant amount was reduced, the World Bank said such changes are common during the preparation phase.
A senior source at the World Bank’s Nigeria office told local media that adjustments to project design and financing are routine before board approval.
“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.”
If approved next month, the grant would formalise a partnership focused on strengthening the CBN’s supervisory capacity at a time when Nigeria’s financial system is facing mounting pressures, including currency volatility, inflation and increased scrutiny of banks and fintech firms.
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The World Bank remains Nigeria’s largest single external creditor, accounting for US$19.39 billion of the country’s total external debt. This includes US$18.04 billion owed to the IDA and US$1.35 billion to the IBRD, representing more than 41 percent of Nigeria’s external debt stock.
Despite concerns about rising debt levels, the Nigerian government has continued to work closely with the World Bank on development financing and technical assistance across multiple sectors.
The World Bank’s loan commitments to Nigeria between 2023 and 2025 are projected to reach $9.65 billion by the end of this year, according to earlier reports, as approvals, negotiations and disbursements accelerate in areas such as infrastructure, social protection, health and energy.
Against this backdrop, the revised CBN grant underscores the World Bank’s continued engagement with Nigeria’s financial sector, even as funding levels are adjusted to reflect evolving priorities and project design.
