Nigeria has taken a major step toward overhauling the management of donor-funded projects with the approval and rollout of the World Bank’s blockchain-enabled FundsChain platform, a move officials say will significantly strengthen transparency and curb financial leakages across government operations.
The development follows the World Bank’s recent approval of a $2.25 billion loan for Nigeria, aimed at supporting fiscal reforms, governance upgrades, and economic stabilization efforts under the current administration’s Renewed Hope Agenda.
Announcing the deployment in Abuja on Tuesday, the Office of the Accountant-General of the Federation (OAGF) described the FundsChain system as a transformative milestone in public financial management. The disclosure was made in a statement signed by Bawa Mokwa, Director of Press at the OAGF.
Delivering his remarks at a workshop attended by project coordinators, accountants, and Financial Management Units (FMUs), the Accountant-General of the Federation, Dr. Shamseldeen Babatunde Ogunjimi, said the rollout signals “a new era in the financial management of development funds.”
According to him, the blockchain-backed platform provides a tamper-proof system that enhances transparency, improves accountability, and boosts efficiency in tracking donor inflows and expenditures.
Describing the initiative as “ground-breaking,” Ogunjimi confirmed that six World Bank-funded projects would be migrated onto the platform in the pilot phase, laying the groundwork for broader adoption across ministries and agencies.
The Abuja workshop, organised to strengthen reporting standards and address recurring gaps in project execution, emphasised the need for tighter oversight of donor-supported programmes. Ogunjimi stressed that transparency and accountability were indispensable to building trust with development partners and ensuring that funds deliver measurable impact.
As part of the reform drive, the AGF also introduced a new Financial Management Manual (FMM)—a comprehensive framework developed by his office to guide all financial transactions under World Bank-assisted programmes. He urged project coordinators and financial managers to adopt the manual fully to minimise infractions, boost performance, and maintain favourable ratings with the World Bank.
A key policy shift announced at the event is a new rule prohibiting the removal or replacement of project financial management personnel within the final six months of project closure. The measure, jointly agreed upon by the OAGF and the World Bank, aims to prevent last-minute disruptions, undocumented advances, and lapses in compliance. Under the new system, any incoming financial officer must work alongside their predecessor for a minimum of three months to ensure a seamless handover.
Ogunjimi revealed that Nigeria’s collaboration with the World Bank has already yielded measurable results, including a 61% reduction in lapsed loans—from $18 million to $7 million—and a 15% decline in undocumented advances. He reaffirmed the OAGF’s commitment to issuing compliance letters to projects with outstanding issues while urging all stakeholders to prioritise documentation, refund lapsed loans, and adhere strictly to donor rules.
He called for deeper synergy among project accountants, implementing agencies, and oversight bodies to ensure that development projects align with government priorities and deliver results.
Representing the World Bank at the event, Senior Financial Management Specialist Akram ElShorbagy, speaking on behalf of Country Director Mathew A. Verghis, commended the OAGF for its sustained reforms and urged continued institutional support to safeguard project integrity and execution.
The rollout of FundsChain positions Nigeria among the early adopters of blockchain-driven public finance tools, signalling its commitment to leveraging innovation in pursuit of transparency, efficiency, and sustainable national development.
WHAT YOU SHOULD KNOW
Nigeria has launched the World Bank’s new blockchain-based FundsChain system to boost transparency and accountability in managing donor-funded projects—marking a major step in the country’s ongoing financial reforms supported by a $2.25 billion World Bank loan.
