The Federal Government of Nigeria has announced the deployment of the World Bank’s blockchain-based platform, FundsChain, to strengthen the management of donor-funded projects.
The announcement was made in a press statement released by Bawa Mokwa, Director of Press at the Office of the Accountant-General of the Federation, on Tuesday.
Speaking at a workshop in Abuja, the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, disclosed that the implementation of FundsChain is part of the broader ongoing reforms aimed at strengthening the financial management of donor-supported development projects.
The workshop brought together project coordinators, accountants, and financial management units to align on new blockchain-based reporting requirements and discuss other solutions to improve financial reporting in donor-funded projects.
Ogunjimi added that the rollout of FundsChain in the country would improve transparency and accountability in donor-funded projects, ensuring more efficient utilization of resources.
He described FundsChain as a “groundbreaking blockchain-based platform designed to enhance transparency, accountability, and efficiency in the management of development project funds,” adding that six projects will be onboarded in the first phase of deployment.
He also mentioned that a new Financial Management Manual, developed by his office, is the new primary guide for handling financial transactions in World Bank-supported projects.
He called on project coordinators, accountants, and Project Financial Management Units to adopt the manual fully to “minimise infractions, improve performance, and sustain a favourable rating with the World Bank.”
According to Ogunjimi,
Transparency and accountability are the foundation upon which we build trust, ensure effective use of resources, and achieve our project development objectives.
He highlighted another major aspect of the ongoing reforms: a ban on dismissing project financial management personnel within six months of a project’s closure.
He noted that the ongoing reforms, in collaboration with the World Bank, have yielded positive results, including a reduction in lapsed loans from $18 million to $7 million and a 15% drop in undocumented financial advances.
World Bank Explores Blockchain for Global Project Oversight
The World Bank has long struggled with fragmented and non-standardized reporting systems across the countries where it disburses funds and supports project developments.
The World Bank created FundsChain to address these challenges by offering an immutable, blockchain-based ledger that is accessible to all project stakeholders.
This initiative positions the World Bank as the first multilateral institution to adopt blockchain technology for project management.
The deployment of FundsChain is part of a broader effort by the World Bank Group (WBG) to make operations more efficient and streamlined, with the aim of improving its services to clients and communities.
FundsChain has been successfully tested in 13 projects across 10 countries, including 5 in Africa: Kenya, Ethiopia, Madagascar, Mauritius, and Mozambique.
By June 2026, it is expected to scale up, targeting approximately 250 projects across developing countries.
The Adoption of Blockchain Technology in Nigeria’s Public Sector
Nigeria has consistently ranked ahead of other African countries in the adoption of blockchain technology, driven largely by private-sector innovation and retail crypto activity. Blockchain adoption in the public sector, however, has been comparatively slow despite recent regulatory efforts.
In 2020, the government released its first draft blockchain strategy, proposing recommendations including a national blockchain consortium, a sandbox for controlled testing, and literacy programmes to foster a digital economy.
This was followed in 2023 by the National Blockchain Policy, developed by the Federal Ministry of Communications and Digital Economy in collaboration with industry stakeholders. The policy tasked government agencies, regulators, academia, and innovation-focused institutions with developing sector-specific frameworks for adoption.
Earlier this year, the government published a national blockchain whitepaper titled “Co-creating a Roadmap for Blockchain in Nigeria,” highlighting the technology’s potential across key areas including governance, supply chains, and digital identity systems. The policy document emphasized the need for collaboration among public and private entities, academia, and civil society to realize the transformative potential of the technology.
Even with the release of policy documents, public-sector adoption of blockchain technology has been slow, although recent initiatives indicate growing involvement and progress.
The Securities and Exchange Commission (SEC) recently partnered with Cambridge University and Busha, a licensed crypto exchange, to develop a blockchain education programme for professionals in both public and private institutions.
The government’s decision to deploy FundsChain marks a defining moment in blockchain adoption in Nigeria’s public sector. It represents a shift from policy commitments to practical implementation and a benchmark for blockchain adoption across other sectors in the public sector. The move also positions Nigeria not only as a leader in blockchain adoption in Africa but also as one of the early adopters of blockchain for public finance management.
