CBN Grant Reduced to $6.8m After World Bank Review

The World Bank has reduced the planned grant for the Central Bank of Nigeria (CBN) from $10.5 million to $6.8 million. This change is based on updated project details published on the bank’s website and confirmed by several news sources.

The grant, which is not a loan, will support the CBN Technical Assistance Facility. It aims to enhance the bank’s technology-driven supervision of Nigeria’s banking sector, strengthen regulatory oversight, and improve the monitoring of payment and remittance systems.

The revised funding amount reflects adjustments made during the project’s development and review process.

A senior World Bank official in Nigeria told The PUNCH that adjustments to project details at this stage are standard practice.

According to the source, “projects or operations under preparation … can be subject to changes. Until the World Bank Board approves them, elements such as design, components, and financing envelopes may be revised or adjusted.”

Approval Stage and Timeline  

The updated information indicates that the project has moved to the decision meeting stage. This is the last internal step before formal approval by the World Bank’s Board of Executive Directors.

The board review is now set for March 27, 2026, showing progress from the earlier review phase when the initiative was first announced in mid-2025.

Funding for the new $6.8 million grant will come entirely from the Finance for Development Multi-Donor Trust Fund. The fund supports development without affecting Nigeria’s current debt obligations.

This project does not involve the International Development Association (IDA) or the International Bank for Reconstruction and Development (IBRD), which are the main lending arms of the World Bank.

Objectives and Expected Impact  

Once approved, the grant will formalize ongoing collaboration between the World Bank and the CBN, focusing on building institutional capacity. Its main objectives include:

• Strengthening technology-driven supervisory infrastructure at the CBN.
• Integrating data analysis into risk-based oversight of banking operations.
• Improving monitoring of payment and remittance flows in Nigeria’s increasingly digital financial environment.

The project has a moderate environmental and social risk rating and is expected to continue until February 28, 2029. It aims to provide multi-year support to enhance regulatory effectiveness and manage systemic risks within the financial system.

Context Within Nigeria and World Bank Relations  

The World Bank remains a key development partner for Nigeria. It is currently the country’s largest external creditor.

The project’s adjustments and funding changes are standard during preparation stages. These modifications are based on updated assessments of scope and resource needs.

Although the reasons for the grant reduction were not publicly detailed by the World Bank, analysts note that such changes are common and reflect shifting priorities.

Looking Ahead  

As the board review approaches in March, various stakeholders will closely monitor the final decision.

Approval could lead to deeper collaboration on financial sector reforms and support Nigeria’s broader goals of modernising its regulatory framework and strengthening economic resilience.