The Federal Government has officially implemented the World Bank’s blockchain-powered FundsChain system in Nigeria, marking a major milestone in public finance reform and the management of donor-supported initiatives.
The announcement was made in a statement issued by Bawa Mokwa, Director of Press at the Office of the Accountant-General of the Federation (OAGF), after a financial management workshop held in Abuja.
Blockchain Launch Ushers in a New Level of Transparency
At the workshop, the Accountant-General of the Federation, Dr. Shamseldeen Babatunde Ogunjimi, highlighted that FundsChain will revolutionise how development funds are monitored and audited.
He explained that the system, built on blockchain technology, will significantly improve:
- Transparency
- Accountability
- Efficiency in tracking donor funding
He added that six World Bank–financed projects will be the first to adopt the platform.
Improving Financial Reporting and Preventing Leakages
The workshop gathered project coordinators, FMUs, and financial managers to strengthen compliance and reporting standards.
“Transparency and accountability are essential to building trust and ensuring effective use of resources,” Ogunjimi said.
He also introduced a new Financial Management Manual (FMM), which will serve as the mandatory guideline for financial activities carried out under World Bank-supported programmes.
New Guidelines for Project Finance Personnel
As part of broader reforms, the OAGF announced a new rule prohibiting the removal of project financial management officers within six months of project completion.
The policy, developed jointly with the World Bank, is designed to prevent disruptions, undocumented expenditures, and reporting gaps. Incoming officers will be required to shadow their predecessors for at least three months to ensure proper handover.
Ogunjimi also reported measurable progress:
- Lapsed loans reduced from $18 million to $7 million
- Undocumented advances reduced by 15%
He urged stakeholders to prioritise transparent documentation, settle outstanding lapsed loans, and follow World Bank financial guidelines.
World Bank Commends Nigeria’s Reform Efforts
World Bank Country Director Mathew A. Verghis, represented by Senior Financial Management Specialist Akram ElShorbagy, praised Nigeria’s ongoing financial management reforms and called for sustained institutional commitment.
FundsChain provides a tamper-proof digital trail of how funds move, from disbursement to final expenditure, giving authorised parties real-time visibility and reducing risks of diversion.
The platform has already been tested in 13 projects across 10 countries, and the World Bank plans to scale it to about 250 investment projects worldwide by the end of its 2026 fiscal year.
World Bank Remains Nigeria’s Largest External Creditor
The World Bank continues to hold a significant share of Nigeria’s external debt. According to the Debt Management Office (DMO), Nigeria’s external debt stood at $46.98 billion as of June 30, 2025.
The World Bank Group accounts for $19.39 billion, comprising:
- $18.04 billion from the International Development Association (IDA)
- $1.35 billion from the International Bank for Reconstruction and Development (IBRD)**
This represents 41.3% of Nigeria’s total external debt, underscoring the Bank’s major role in the country’s development financing.
