Tech
AFD and EIB threaten to withdraw funding from Nigeria’s digital ID project
The French Development Agency (AFD) and the European Investment Bank (EIB) have warned they will withdraw funding from Nigeria’s Digital Identification for Development (ID4D) project if the World Bank steps down as the lead financier and implementer.
This follows Nigeria’s failure to meet initial project deadlines and critical targets.
A restructuring paper published by the World Bank on June 26 indicates that the project will be extended by six months, until December 2024, to prevent cancellation by the co-financiers. The document states, “Both co-financiers have indicated that they will cancel their financing if the World Bank is no longer the lead financier and implementor of this project.”
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In 2019, the World Bank, in collaboration with AFD and the European Union, provided a $433 million grant to Nigeria for the ID4D project.
The initiative aims to increase the number of Nigerians with access to digital identity and enhance the National Identity Management Commission (NIMS), data privacy, and security. Initially set to conclude by June 30, 2024, the project has faced significant delays.
The World Bank attributes the 22-month delay to approval holdups by Nigeria’s National Assembly, the lack of a comprehensive data protection law, and prolonged hiring processes for key staff.
Additionally, the project has transitioned between three different government agencies and two project coordinators.
By June, the project had achieved a 37.37 percent disbursement rate, with Nigeria issuing only 104 million digital IDs out of a target of 148 million by December 2023. Consequently, the World Bank has canceled some initial objectives, such as digitized civil registration and the creation of a national CR database.
In March, FIJ reported issues with Nigeria’s National Database, including data breaches compromising citizens’ privacy. More recently, FIJ highlighted Paradigm Initiative’s claim that they purchased Minister Bosun Tijani’s National Identification Number (NIN) slip for just N100 online.
