The World Bank has reviewed the target for Nigeria under the Digital Identity for Development (ID4D) increasing the number of Nigerians to be issued the National Identification Number (NIN) from 148 million to 180 million.
According to the latest document on the project’s restructuring released by the Bank, while Nigeria missed the initial target of 148 million NIN by June 2024, it has made significant progress that warrants the extension of the project and expansion to cover more Nigerians.
As of October this year, the Director-General of the National Identity Management Commission (NIMC), Engr. Abisoye Coker-Odusote said the Commission had issued NIN to 115 million Nigerian and legal residents.
Despite this progress, the World Bank noted that a gap still exists as almost half of Nigerians, mostly women, persons with disabilities, and disadvantaged persons, still do not have digital identification.
It added that this excludes the most vulnerable population from receiving government assistance, financial inclusion, and transacting in the digital economy.
The Bank, however, noted that the ID4D project has already started to close this gap through targeted enrollment for the poor and vulnerable.
“This project aims to support universal NIN coverage by increasing the target for the number of NIN to be issued under the project from 148 million to 180 million. This will have transformational impact by enabling Nigerians to utilize digital identification for prosperity,” the Bank stated.
Project extension
The World Bank further disclosed that the Nigerian government on May 31, 2024 requested a three-year extension of the ID4D project.
- It said an agreement was reached on a two-stage restructuring and extension plan. The first stage was processed in June 2024 to extend the closing date from June 30, 2024, to December 31, 2024, update the results framework, and remove activities that no longer aligned with Government priorities.
- According to the Bank, the 6-month extension was granted to allow the government of Nigeria to demonstrate its commitment to project implementation, by designing and launching the procurement of a new national identity management system on an open-source architecture that is modular, interoperable, and scalable.
“The government has successfully achieved this milestone, and, on this basis, the second stage extension for an additional 24 months is being proposed to allow for the completion of the remaining critical activities and the successful achievement of the project development objectives (PDO).
“The proposed restructuring would extend the closing date from December 31, 2024 to December 31, 2026,” it said.
Unlocking disbursement of fund
The project’s total financing amounts to $430 million equivalent, $115 million of which are from the World Bank’s IDA, $100 million equivalent from the French Development Agency (AFD), and $215 million equivalent from the European Investment Bank (EIB).
The Bank disclosed that so far, 53.16 of the fund has been disbursed but added that Nigeria has made significant progress toward fulfilling the final disbursement condition, which is the amendment of the NIMC Act to promote an inclusive and non-discriminatory legal and regulatory framework.
- While noting that the proposed amendment has already passed two readings in the National Assembly, the Bank said the third and final reading is scheduled to take place in January 2025, after which the President is expected to assent to the Bill in February 2025.
- Beyond the legal reforms required for disbursement conditions, the Bank said the ID4D project is also supporting legislative processes to build trust in the broader digital economy so that Nigerians can utilize their digital identities to securely transact online.
“This includes the development of two critical laws, namely a cyber security Bill and the Nigeria Digital Economy and e-Governance Bill (NDEB). Both Bills aim to strengthen Nigeria’s participation in the global digital economy by addressing key aspects such as cyber security, e-signatures and e-commerce.
“In addition, the project is supporting the development of a national data sharing framework. These reforms are critical as they will enable Nigerian people and businesses to transact online in a safe and secure manner,” the Bank stated.
Building a robust ID system
The World Bank noted that Nigeria has also made progress in establishing a robust and inclusive ID system.
- These, it said, include upgrades of critical IT systems, such as the expansion of the Automated Biometric Identification System (ABIS) to allow for storage of 250 million NIN, which is scheduled for completion by March 2025.
- Others are improvements and upgrades within the NIMS relating to privacy, performance, fiduciary, monitoring, assurance, and risk; and the development of a business model that reinforces the ecosystem approach which ensures an effective incentive structure for FEPs, including those who will enroll in marginalized and hard to reach areas.
- The Bank said Nigeria can leverage the new national identity management system (NIMS), being procured under the project, to serve as an interoperable platform for both public and private sectors to provide downstream transactions and service delivery thereby making digital public infrastructure (DPI) a reality.
“As the most populous country and second largest economy in Africa, a successful implementation of a nationwide foundational digital identity project in Nigeria sets a benchmark for the region.
“Nigeria can set the standard for developing systems that are based on open standards, are interoperable, and enable access to services.
“By investing in digital identification and the accompanying analogue complements, Nigeria can unlock its digital economy which will have a ripple effect across the continent,” the Bank said.
What you should know
The Nigeria ID4D project was approved by the Board of executive directors of the International Development Association (IDA) on February 18, 2020.
The associated Financing Agreement (FA) was signed in February 2021 and declared effective on December 14, 2021.
The project’s objective is “to increase the number of persons with a national ID number, issued by a robust and inclusive foundational ID system, that facilitates their access to services”.