Nigeria has formally approached the World Bank for a $10.5 million loan aimed at enhancing the Central Bank of Nigeria’s (CBN) technical capabilities, particularly in the areas of supervision, innovation, and remittance infrastructure. This request is part of a broader initiative to adapt the country’s financial regulatory framework to the rapidly changing dynamics of digital finance and to support the government’s ongoing transition toward a cashless economy.

According to details obtained from the World Bank’s public disclosures, the project is currently at the concept review stage and will be implemented by the Central Bank of Nigeria once it receives board approval, scheduled for June 12, 2025.

The proposed initiative, titled the CBN Technical Assistance Facility, is designed to equip the apex bank with modern tools, advanced technology, and international expertise to improve its operations and oversight functions in line with global best practices.

Strengthening CBN’s Supervisory Capacity Through Technology

At the heart of the project is a commitment to enhancing the CBN’s institutional and supervisory capacity. The World Bank outlines that the initiative will incorporate data-driven solutions and technology-based supervision frameworks, allowing the regulator to respond more effectively to risks in the increasingly complex financial services sector.

Key aspects of this component include the integration of Supervisory Technology (SupTech) systems—digital platforms that allow regulators to collect, analyze, and act upon financial data with increased speed and accuracy. These tools are expected to strengthen risk-based supervision, improve operational efficiency, and help detect irregularities in real-time.

In addition, the project will fund the modernization of internal processes within the CBN. This will involve streamlining workflows, deploying digital governance systems, and aligning internal operations with the evolving demands of the financial sector. Support from peer central banks and international experts will also be mobilized to provide technical advisory and knowledge exchange.

Advancing Domestic Remittance Infrastructure

A major objective of the technical assistance facility is to modernize domestic payment systems, particularly those related to remittance flows. The World Bank emphasized the importance of developing infrastructure that ensures safer, faster, and more reliable remittance transfers.

Part of the reform effort will focus on encouraging informal remittance flows—often sent through unofficial channels—to be redirected into formal banking systems, thereby improving monitoring and integration into the broader economy.

To support this, the project will include annual household surveys on remittance usage, as well as peer-to-peer learning initiatives involving other central banks and remittance experts. These activities are expected to support the development of evidence-based policies that strengthen remittance governance and expand financial inclusion.

The World Bank stated that the goal of the project is “to strengthen technology-enabled, data-driven, risk-based supervision at the CBN and improve domestic payment infrastructure for remittances in Nigeria.”

Aligning with National Digital Transformation and Financial Goals

The loan proposal aligns with the Nigerian government’s national priorities, particularly those outlined in its National Development Plan (2021–2025) and broader goals to deepen the digitalization of financial services.

Nigeria has in recent years accelerated the shift towards digital finance, including the promotion of cashless transactions, the development of a central bank digital currency (CBDC) known as the eNaira, and increased use of mobile money platforms. However, the regulatory framework has often lagged behind technological advances, creating risks that this World Bank-backed initiative seeks to address.

By building institutional resilience through tech upgrades and supervisory reform, the CBN will be better equipped to oversee banks, fintech firms, and other financial service providers in a transparent and risk-sensitive manner.

Broader World Bank Support for Nigeria: $1.08 Billion in New Approvals

The proposed $10.5 million loan comes in addition to a recent series of financing approvals by the World Bank for Nigeria, totaling $1.08 billion. These funds are allocated to key sectors including education, nutrition, and economic resilience, as part of broader efforts to improve social welfare outcomes and strengthen the country’s development framework.

According to a recent announcement on the World Bank’s website, the financing includes:

• $500 million in additional funding for the Community Action for Resilience and Economic Stimulus (NG-CARES) program.

• $80 million for the Accelerating Nutrition Results in Nigeria (ANRIN 2.0) initiative.

• $500 million for the Hope for Quality Basic Education for All (HOPE-EDU) initiative.

Each of these programs targets strategic needs across vulnerable populations and aims to boost Nigeria’s ability to respond to shocks, including those caused by the removal of fuel subsidies and currency reforms in 2023.

Strengthening Economic Resilience and Nutrition

The NG-CARES program was initially introduced to address the fallout from the COVID-19 pandemic. However, it has since evolved into a shock-responsive intervention platform, offering a wide range of services, including livelihood grants, food security interventions, and support for small businesses.

The World Bank highlighted that NG-CARES has already reached over 15 million beneficiaries, with the new financing expected to scale up its impact, particularly as Nigeria grapples with deepening inflation and currency volatility.

Similarly, the ANRIN 2.0 program builds on the success of the original initiative, which provided nutrition services to over 13 million children under five between 2018 and 2024. The new funding will enhance nutrition access for pregnant women, lactating mothers, adolescent girls, and children, targeting both preventive and curative care across selected states.

The focus will include increased access to micronutrient-rich foods, improved feeding practices, and support for maternal and child health services, contributing to the national goal of reducing malnutrition and stunting.

HOPE-EDU to Revolutionise Basic Education

The HOPE-EDU initiative represents one of the most ambitious efforts to reform basic education in Nigeria. With a focus on foundational literacy and numeracy, the program will provide direct support to 29 million pupils, 500,000 teachers, and more than 65,000 public primary schools.

The intervention is designed to address long-standing issues such as school overcrowding, insufficient learning materials, and gaps in teacher training. It will also improve the equitable allocation of education funds, especially to underfunded schools in rural and underserved areas.

The initiative will benefit from an additional $52.18 million from the Global Partnership for Education Fund, reflecting international confidence in Nigeria’s education reform strategy.

Conclusion: Strategic Reforms with Global Backing

Nigeria’s request for a $10.5 million technical assistance loan from the World Bank reflects a deliberate strategy to modernize financial supervision and improve remittance management in a digital-first economy. At the same time, the country is securing broader support to bolster essential services such as education, food security, and economic empowerment.

These initiatives signal a multi-sectoral approach to development, with the World Bank playing a pivotal role in helping Nigeria build a more resilient and inclusive economy through targeted, high-impact investments.