The World Bank has clarified that the $10.50 million funding recently announced for the Central Bank of Nigeria (CBN) is a grant, not a loan.
A World Bank source, who spoke on condition of anonymity, disclosed that the funding is part of the Finance for Development Multi-Donor Trust Fund, aimed at strengthening the CBN’s technical capacity and modernising Nigeria’s domestic payment infrastructure.
Although initial reports suggested the funding was a loan due to the World Bank’s website listing the CBN as a “borrower,” further checks confirmed it as a grant. It is not part of the World Bank’s usual lending through the International Development Association (IDA) or International Bank for Reconstruction and Development (IBRD).
The grant will support the CBN in adopting innovative technologies for risk-based supervision, enhancing remittance systems, and addressing regulatory challenges in the fast-evolving financial sector. The project, known as the CBN Technical Assistance Facility, is currently at the concept review stage and is scheduled for board approval on June 12, 2025.
The CBN will serve as the implementing agency, working closely with the World Bank to ensure the successful execution of the initiative.
