The World Bank has clarified that the planned $10.50m financing to the Central Bank of Nigeria is a grant, not a loan.
According to a source at the World Bank who spoke to our correspondent under the condition of anonymity on Friday, the amount is being provided under the Finance for Development Multi-Donor Trust Fund as part of a partnership between the World Bank and the CBN.
It was earlier reported that Nigeria had approached the World Bank for a $10.50m loan to enhance the CBN’s technical capacity and modernise the country’s domestic payment infrastructure.
This was because the World Bank’s website described the CBN as a borrower for the project.
However, following the statement from the source, Sunday PUNCH was further able to independently verify this from the website, which confirms that the amount is designated as a grant to support the project.
It is not a financing commitment under the International Development Association and the International Bank for Reconstruction and Development of the World Bank.
The Washington-based bank often lends to Nigeria under the IDA and IBRD.
It was learnt that the grant is part of a collaborative effort between the World Bank and the CBN to enhance the apex bank’s capacity for technology-enabled, data-driven, risk-based supervision and improve domestic payment infrastructure, particularly for remittances.
According to information previously obtained from the World Bank website, the proposed CBN Technical Assistance Facility seeks to support the integration of innovative technologies into the CBN’s supervisory framework.
The initiative is expected to help the apex bank address long-standing and emerging challenges within Nigeria’s rapidly evolving financial landscape while improving domestic payment systems.
The project, which is currently at the concept review stage, will focus on strengthening the CBN’s institutional capacity, enhancing supervisory capabilities through advanced technological solutions, and modernising domestic payment systems to ensure safety and reliability in remittance flows.
The scheme, which has a commitment amount of $10.50m, is scheduled for board presentation 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 project.
Credit: punchng.com
