The Federal government of Nigeria is seeking another fresh $10.5 million loan to enhance the efficiency of the country’s domestic payment system. According to reports, on Thursday, the West African country aims to leverage the latest windfall to advance the technical infrastructure of its central bank.
As revealed, the Central Bank of Nigeria (CBN) intends to incorporate cutting-edge technology and data science to boost its oversight capacity. The apex financial institution in Nigeria is pursuing the improvement of the existing domestic payment system and tackling emerging and long-existing issues.
More so, the project will focus on three crucial areas and it is currently at the concept review stage. The first key initiative the CBN is looking towards is how to maintain the pace with the fast-growing technological advancements by introducing a comprehensive framework.
Similarly, to further align with the digital world, the financial institution will rely on expert advisory support and peer-to-peer central bank exchanges. Additionally, the CBN aims to fund modern technical tools to enhance data accuracy and risk-based supervision.
Recently, Nigeria received a loan worth $ 1.08 billion from the World Bank to aid education, nutrition and economic stability in the country. According to the World Bank, $500 million from the funds will help address to additional financing and Community Action For Resilience and Economic Stimulus (NG-Cares) programs.
About another $500 million is dedicated to the Hope for Quality Basic Education for All (HOPE-EDU) Initiative. Lastly, the Nigerian government aims to use the remaining $80 million for Accelerating Nutrition Results in Nigeria (ANRIN 2.0).
Meanwhile, mixed reactions greeted the loan approval as most Nigerians are concerned about the rising debts. A user on X identified as “47” accused the FG of mismanaging the funds. The users described the whole initiative as a scam.
