World Bank Approves $10.5 Million Grant to Strengthen CBN’s Technical Capacity and Domestic Payment Infrastructure

The World Bank is set to provide a $10.5 million grant to Nigeria as part of efforts to modernize the country’s domestic payment infrastructure and enhance the technical capacity of the Central Bank of Nigeria (CBN). This initiative, under the Finance for Development Multi-Donor Trust Fund, is a strategic collaboration between the World Bank and the CBN aimed at transforming Nigeria’s financial regulatory landscape through technology and data science.

The proposed CBN Technical Assistance Facility seeks to integrate innovative technologies into the apex bank’s supervisory operations, paving the way for data-driven, risk-based supervision. According to project documents released by the World Bank, the facility will play a vital role in improving the infrastructure for remittance payments and supporting the transition to a more inclusive and digitally enabled financial ecosystem.

Key Objectives of the World Bank Grant

The initiative is built around three central pillars:

1. Strengthening Institutional Capacity

The grant will help establish a robust governance framework within the CBN, while offering access to expert advisory support and facilitating peer-to-peer knowledge exchange with other central banks. These efforts are intended to align the bank’s internal systems with the demands of modern digital finance.

2. Enhancing Supervisory Capacity through SupTech

By adopting Supervisory Technology (SupTech) solutions, the CBN will be better positioned to implement risk-based financial oversight, improve data accuracy, and streamline regulatory operations. This aligns with global trends in financial supervision and reflects Nigeria’s ambition to lead in regulatory innovation across Africa.

3. Modernizing Domestic Payment Systems for Remittances

The World Bank grant will also support efforts to formalize remittance flows, ensuring safer and more reliable channels for cross-border payments. Plans include annual household remittance surveys and the development of innovative strategies to bring informal transfers into the formal economy.

Aligning with Nigeria’s Cashless and Digital Finance Goals

This project supports the Nigerian government’s broader commitment to a cashless economy and digital financial services adoption. With remittance flows playing a critical role in household incomes, the move to modernize payment infrastructure is both timely and necessary.

The facility is currently at the concept review stage and is expected to be presented for World Bank board approval on June 12, 2025. The CBN will serve as the implementing agency, working in close collaboration with development partners to execute the project.

Nigeria’s Growing Relationship with the World Bank

This proposed grant comes on the heels of a broader World Bank commitment to Nigeria. Earlier in 2025, the World Bank approved $1.08 billion in concessional financing to support education, nutrition, and economic resilience under initiatives like the NG-CARES, ANRIN 2.0, and HOPE-EDU.

So far, the Tinubu administration has secured over $8 billion in World Bank support, with the institution now accounting for more than 39% of Nigeria’s external debt portfolio, largely through the International Development Association (IDA).