The World Bank and Nigeria are ushering in a new era of accountability with the rollout of FundsChain, a blockchain-based system designed to track and secure project funds. The platform gives all relevant parties, from development partners to auditors, beneficiaries, and accounting teams, real-time, tamper-proof visibility into how money flows. According to Nigeria’s Accountant-General’s Office, this will improve “transparency, accountability and efficiency in managing donor inflows.”
At a workshop in Abuja, Dr. Shamseldeen Babatunde Ogunjimi, the Accountant-General of the Federation, said the first phase will include six World Bank–funded projects. The training session brought together project coordinators, financial management staff, and other stakeholders. It highlighted how FundsChain can foster stronger reporting standards, minimize waste, and reinforce trust across the life cycle of development programmes.
To support this shift, a new Financial Management Manual (FMM) has been introduced. The AGF’s office says the manual will guide how money is documented, disbursed, and audited, a cornerstone for reducing infractions and improving performance. And to further safeguard continuity, there’s now a policy: key financial management officers on these projects cannot be removed within six months of project closure. “Incoming officers must work side-by-side with their outgoing counterparts … to ensure seamless transitions,” the AGF explained.
Reflecting on past issues, Ogunjimi revealed that lapsed loans; funds that were approved but not properly used, dropped dramatically, from $18 million to $7 million, after reforms. That’s a 61% decrease. Also, undocumented advances were cut by around 15%. He emphasized that strict documentation, adherence to the new FMM, and prompt refunding of lapsed loans are crucial to improving Nigeria’s creditworthiness with the World Bank.
Representing the World Bank, Mathew Verghis (Country Director) underscored the importance of institutional backing. He called for continuous institutional support to ensure these reforms stick, and for all project teams to embrace the new manual.
Key facts about FundsChain:
It creates an immutable, blockchain-based digital ledger for fund disbursement, from first release to final payment.
It’s already being tested in 13 development projects across 10 countries, and it will be expanded to about 250 projects globally by mid-2026.
By using cryptographic and distributed-ledger technology, the platform removes manual, paper-based tracking, improving speed and reducing the risk of manipulation.
Ogunjimi called the FundsChain rollout “ground-breaking” for Nigeria’s financial management system. He argued that better fund tracking will not only build trust with donors but also ensure that projects are executed effectively and deliver real development impact.
By reducing financial leakages and boosting accountability, FundsChain could help Nigeria secure better ratings and lower the risk premium on future loans, potentially saving taxpayer money. It signals to global funders that donor inflows are well-managed, which could make external financing more accessible and cheaper.
