By Okafor Joseph | Global Finance Correspondent

In a strategic move to modernize its financial supervision framework and domestic remittance infrastructure, the Federal Government of Nigeria is seeking a new $10.5 million loan from the World Bank. The proposed funding, officially titled the “CBN Technical Assistance Facility,” aims to enhance the Central Bank of Nigeria’s (CBN) technological and data-driven oversight capabilities amid the country’s evolving digital finance ecosystem.

Strengthening Nigeria’s Financial Architecture

According to exclusive data accessed from the World Bank’s official repository, the facility is designed to empower the CBN with tools for risk-based supervision, data accuracy, and institutional modernization. Currently undergoing concept review, the proposal is expected to be presented to the World Bank board for approval on June 12, 2025.

The project targets three core objectives:

1. Institutional Modernisation: Boosting the CBN’s governance and operational systems by integrating advanced digital solutions, expert advisory services, and facilitating peer-exchange programmes with other central banks.
2. Supervisory Technology Integration: Introducing advanced SupTech (Supervisory Technology) systems to improve regulatory oversight through real-time data monitoring and efficiency tools.
3. Remittance Infrastructure Enhancement: Overhauling domestic remittance systems to ensure security, reliability, and the formalisation of informal remittance flows—particularly relevant given Nigeria’s significant diaspora inflows.

“This initiative will align the apex bank’s oversight processes with global digital banking trends, while also reinforcing the federal government’s vision for a cashless economy,” noted a World Bank brief.

Aligning with Broader Development Goals

This new facility complements Nigeria’s larger financial and social reform agenda, including the World Bank’s recent approval of $1.08 billion in concessional loans across education, nutrition, and economic resilience sectors.

The approved portfolio includes:

• $500M for the Community Action for Resilience and Economic Stimulus (NG-CARES): Supporting vulnerable households through livelihood support, food security, and grants.
• $80M for Accelerating Nutrition Results in Nigeria (ANRIN 2.0): Targeting maternal and child health outcomes through enhanced access to nutritional services.
• $500M for the HOPE-EDU Project: Improving foundational literacy and basic education infrastructure, expected to benefit over 29 million students and half a million teachers nationwide.

These programs fall in line with the National Development Plan (2021–2025) and reflect Nigeria’s commitment to resilience, inclusivity, and digital transformation.

A Global Perspective on Nigeria’s Economic Reset

Nigeria’s economic policymakers are navigating complex transitions, including the impacts of fuel subsidy removals and a restructured foreign exchange regime. The new CBN technical assistance programme is expected to play a pivotal role in equipping financial regulators with tools to stabilize the economy through innovation and efficiency.

If approved, the $10.5 million facility will be implemented directly by the Central Bank of Nigeria, making it a high-impact initiative in the country’s quest for fintech leadership and inclusive financial systems.