The World Bank has revised downward the size of a planned grant to the Central Bank of Nigeria (CBN) from $10.5 million to $6.8 million, according to updated project disclosures.
The revised funding is structured strictly as a grant and does not involve any form of borrowing, ensuring that the initiative does not add to Nigeria’s external debt obligations.
The project, which is approaching final consideration, is now scheduled for board review in late March 2026.
The grant is intended to support a technical assistance programme aimed at modernising the CBN’s supervisory framework.
The initiative focuses on strengthening regulatory oversight through advanced technology, data analytics, and improved monitoring of banking activities, payment systems, and remittance flows within Nigeria’s financial system.
Recent project updates indicate that the initiative has progressed into a late-stage internal review phase within the World Bank’s approval process.
This signals that the project has moved beyond preliminary assessment and is now closer to formal authorisation, despite the reduction in its funding envelope.
Funding for the revised grant will be drawn entirely from a multi-donor trust fund dedicated to development finance, with no participation from the International Development Association or the International Bank for Reconstruction and Development.
This structure further confirms that the programme is separate from Nigeria’s traditional debt-linked financing arrangements with the World Bank Group.
The Central Bank of Nigeria is listed as the executing authority for the project. Once approved, the programme is expected to enhance the apex bank’s capacity to identify systemic risks, strengthen compliance monitoring, and deepen its understanding of payment and remittance dynamics in an increasingly digital financial environment.
The project carries a moderate environmental and social risk classification and is expected to run until 2029, providing multi-year support for institutional capacity building within the CBN.
While the World Bank has not provided specific reasons for the reduced grant size, adjustments to funding levels and project design are common as initiatives advance through internal review stages. Such refinements typically reflect updated assessments of scope, implementation needs, and resource allocation.
The development comes against the backdrop of the World Bank’s significant financial relationship with Nigeria. The institution remains the country’s largest external creditor, accounting for a substantial share of Nigeria’s outstanding foreign obligations, largely through concessional and development-focused financing.
If approved, the revised grant will formalise continued cooperation between the World Bank and the Central Bank of Nigeria, with a focus on strengthening financial sector oversight and supporting long-term stability in Africa’s largest economy.
