Nigeria has approached the World Bank for a $10.50m loan to support a CBN technology upgrade loan, enhancing its supervisory capabilities and payment infrastructure

The funds aim to bolster the Central Bank of Nigeria’s (CBN) technical capacity and modernise the nation’s domestic payment infrastructure.

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Information obtained exclusively from the World Bank website by The PUNCH on Thursday reveals that the proposed CBN Technical Assistance Facility intends to support the integration of innovative technologies and data science into the CBN’s supervisory processes.

This initiative is expected to equip the apex bank to tackle both long-standing and emerging challenges within Nigeria’s rapidly evolving financial landscape.

Furthermore, it aims to improve the safety and reliability of the domestic payment infrastructure, particularly for remittances.

The project, currently at the concept review stage, will concentrate on three key areas.

Firstly, it will strengthen the CBN’s institutional capacity to keep pace with technological advancements.

This will involve establishing a robust governance framework, providing expert advisory support, facilitating peer-to-peer central bank exchanges, and modernising the CBN’s internal processes to align with the digital era.

Secondly, the project will enhance the CBN’s supervisory capacity through technology and data improvements.

This includes funding modern technical solutions, such as Supervisory Technology (SupTech) systems, to improve data accuracy, operational efficiency, and risk-based supervision.

Thirdly, the initiative aims to modernise domestic payment systems for remittances to improve their safety and reliability.

It will explore innovative methods to attract informal remittance flows into formal channels, conduct annual surveys on remittance households, and foster peer-to-peer learning for knowledge exchange.

According to the World Bank, the overarching objective of this project is “to strengthen technology-enabled, data-driven, risk-based supervision at the CBN and improve domestic payment infrastructure for remittances in Nigeria.”

The project aligns with the Nigerian government’s ongoing pursuit of a cashless economy and the increasing adoption of digital financial services across the country.

The scheme, with a committed amount of $10.50 million, is scheduled for board presentation approval on June 12, 2025. The Central Bank of Nigeria will be the implementing agency.

The PUNCH had previously reported the World Bank’s approval of three financing operations totalling $1.08 billion to support education, nutrition, and economic resilience in Nigeria.

These concessional loans aim to improve education quality, build household and community resilience, and enhance nutrition for underserved groups.

The approved operations include additional financing for the Community Action for Resilience and Economic Stimulus Programme, the Accelerating Nutrition Results in Nigeria (ANRIN 2.0) initiative, and the Hope for Quality Basic Education for All (HOPE-EDU) initiative.