Business
World Bank clears air on $10.50m facility to CBN …says funds not loan but grant
The World Bank has debunked speculations that the planned $10.50million financing to the Central Bank of Nigeria (CBN) is a loan.
According to the World Bank, 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 would be recalled that several news outlets had reported that the Federal Government had approached the World Bank for a $10.50million loan to enhance the CBN’s technical capacity and modernise the country’s domestic payment infrastructure.
The news outlets had based their assumption on the description of CBN as a borrower for the project on the World Bank’s website
However, BH checks revealed that the bank on its website confirmed 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 $10.50million, is scheduled for board presentation approval on June 12, 2025
