Nigeria Seeks $10.5 Million Loan from World Bank to Boost CBN’s Capacity and Payment Infrastructure
Nigeria has approached the World Bank for a new loan of $10.5 million to enhance the technical capacity of the Central Bank of Nigeria (CBN) and modernize the country’s domestic payment infrastructure. This loan aims to address challenges within Nigeria’s evolving financial landscape, while focusing on improving remittance payment systems. The project, which is in its concept review stage, aligns with the government’s push towards a cashless economy and the increasing adoption of digital financial services.
The primary goal of the loan is to strengthen CBN’s technology-enabled, data-driven, risk-based supervision. The World Bank’s proposed framework involves three key areas. The first is strengthening institutional capacity at CBN by establishing robust governance frameworks, advisory support, and peer exchanges to help the bank keep pace with technological advancements. The second area focuses on enhancing the bank’s supervisory capacity with modern tools such as Supervisory Technology (SupTech), aimed at improving operational efficiency and data accuracy. The final area targets modernizing remittance payment systems, which will help direct informal remittance flows into more secure, formal systems.
The project is expected to be presented for board approval on June 12, 2025, with CBN as the implementing agency. Its objectives align with Nigeria’s broader economic goals and the federal government’s efforts to expand digital financial infrastructure. The project is also seen as a critical step in advancing the country’s financial inclusion and economic resilience in the face of ongoing challenges.
This proposed loan follows a series of recent approvals by the World Bank to support various sectors in Nigeria. Earlier, the World Bank approved financing worth $1.08 billion for initiatives in education, nutrition, and economic resilience. The government, under President Bola Tinubu, has secured a total of $8.03 billion in World Bank loans in less than two years, contributing to Nigeria’s rising external debt, which currently totals $17.32 billion, with a significant portion owed to the World Bank.
Source: naira metrics