The Federal Government has confirmed the deployment of the World Bank’s new blockchain-driven FundsChain system in Nigeria, as part of sweeping reforms aimed at tightening controls over donor-funded projects and curbing financial leakages.
This was disclosed in a statement signed by Bawa Mokwa, Director of Press at the Office of the Accountant-General of the Federation (OAGF), following a workshop held in Abuja on Tuesday.
Speaking at the event, the Accountant-General of the Federation (AGF), Dr Shamseldeen Babatunde Ogunjimi, said the FundsChain rollout marked a new era in the financial management of development funds.
According to him, the platform—backed by blockchain technology—will enhance transparency, accountability, and efficiency in managing donor inflows.
Describing the initiative as “ground-breaking,” Ogunjimi said six World Bank-funded projects would be onboarded in the initial phase.
The workshop was organised to engage project coordinators, accountants, and Financial Management Units on ways to strengthen reporting standards and reduce wastage in project execution.
“Transparency and accountability are the foundation upon which we build trust, ensure effective use of resources, and achieve our project development objectives,” Ogunjimi said.
The AGF also announced that a Financial Management Manual (FMM), developed by his office, would now serve as the guiding framework for all financial transactions under World Bank-supported programmes. He urged project coordinators and financial managers to adopt the manual to “minimise infractions, improve performance, and sustain favourable rating with the World Bank.”
World Bank bans removal of key finance staff
A major highlight of the reform is a new policy barring the removal of project financial management personnel within six months of a project’s closure.
According to Ogunjimi, the OAGF and the World Bank agreed to enforce the measure to prevent lapses, undocumented advances, and disruptions in implementation. He said incoming officers must work side-by-side with their outgoing counterparts for at least three months to ensure seamless transitions.
“We continue to address the issues that hinder projects from attaining high ratings,” he said. “Through our collaboration with the World Bank, we’ve reduced lapsed loans from $18 million to $7 million, a 61 per cent drop, and recorded a 15 per cent cut in undocumented advances.”
The AGF said his office would continue to issue letters to projects with outstanding issues and urged stakeholders to prioritise documentation, refund lapsed loans, and adhere strictly to World Bank rules.
He called for deeper collaboration among accountants and implementation teams to deliver results in line with the Renewed Hope Agenda of the current administration.
Also speaking at the event, the World Bank Country Director, Mr Mathew A. Verghis—represented by Senior Financial Management Specialist, Akram ElShorbagy—commended the OAGF’s reform efforts and called for sustained institutional support to safeguard project success.
What you should know
FundsChain is a blockchain-based platform developed by the World Bank to create a tamper-proof, end-to-end digital record of how project funds move from disbursement to final payment, giving all authorised stakeholders real-time visibility over transactions.
It has already been piloted in 13 projects across 10 countries and is now being scaled up to about 250 World Bank–financed investment projects globally by the end of the Bank’s 2026 fiscal year.
The World Bank has been Nigeria’s largest multilateral creditor, accounting for a large share of the country’s external debt.
As of June 30, 2025, Nigeria’s total external debt stood at $46.98 billion, according to data from the Debt Management Office (DMO).
Of this amount, the World Bank Group remains the country’s single largest creditor, holding a combined $19.39 billion—comprising $18.04 billion from the International Development Association (IDA) and $1.35 billion from the International Bank for Reconstruction and Development (IBRD). This represents 41.3% of Nigeria’s total external debt stock, showing the Bank’s dominant role in Nigeria’s external financing profile.
