The World Bank has decided to extend Nigeria’s $430m Digital Identification for Development project to June 2026, to ensure the full disbursement of the $430m pledged by its financiers.

This decision comes amid threats from the French Development Agency and the European Investment Bank to withdraw their funding if the World Bank ceases to be the project’s implementor after the original closure date of June 30, 2024.

Approved by the International Development Association in 2020, the ID4D project involves a financing plan with contributions of $100m from AFD, $215m from EIB, and $115m from IDA, an arm of the World Bank.

In a document sighted by The PUNCH, the World Bank emphasised the importance of extending the project to ensure uninterrupted progress and to preserve the positive impact on Nigeria’s digital identity infrastructure.

“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.

“As such, it is critical that the World Bank extend the closing date of the project to allow continuity across all co-financiers, avoid any disruptions to the good progress made so far, and safeguard the positive impact it has had on Nigeria’s digital identity infrastructure,” the document highlighted.

The PUNCH reported last month that out of the $430m earmarked for the project, only $45.5m had so far been disbursed, amounting to about 10.5 per cent of the total sum.

The extended timeline aims to meet the growing demand for a reliable and inclusive digital ID system to enhance transparency, efficiency, and the effectiveness of governance and public service delivery in Nigeria.

Despite significant efforts, Nigeria has faced challenges in meeting project targets, including the issuance of 148 million NINs by June 2024.

The project has a four-component plan that aims to enhance the country’s identity management system, promoting efficiency, inclusivity, and security.

However, key activities under Component 2, which focuses on establishing a robust and inclusive foundational ID system, have encountered delays.

The Automated Biometric Identification System, which processes biometric data, is also nearing full capacity with 80 million records.

However, efforts have been made to expand ABIS’s capacity to accommodate 200 million enrollments by March 2025, this was revealed in a press statement after the NIMC and IDEMIA Smart Identity, a digital identity company, signed a memorandum of understanding in April.

As of May, the number of NINs had risen to 107.34 million, according to NIMC Director General Abisoye Coker-Odusote.

This figure increased by 3.2 million from the 104 million recorded in December 2023.

According to the Bretton Woods institution, the restructuring will allow the project to adapt to the latest realities and priorities of the Nigerian government.

It noted that critical changes included the cancellation of certain activities under subcomponent two due to limited timelines, adding that those activities included collaborations to build links with digitised civil registration, conducting capacity assessments and institutional mapping of the National Population Commission.

It also involved creating a national civil registration database interoperable with NIMS and developing new mechanisms for continuous digital birth registration with NIN generation.

It explained that funding initially allocated to those cancelled activities would be redirected towards developing a new National Identity Management System.

Meanwhile, indicators related to the number of Nigerian government offices abroad equipped to register Nigerians for NINs would be deleted, as the government prioritises issuing NINs within Nigeria to ensure access to services for the poor and vulnerable, according to the multilateral lender,

 The World Bank noted significant progress toward fulfilling the final disbursement condition, which involved amending the NIMC Act to promote an inclusive and non-discriminatory legal and regulatory framework.

The Nigerian Senate had advanced a bill to repeal the National Identity Management Commission Act of 2007, passing it to the second reading stage on Tuesday last week.

The proposed legislation, introduced by Deputy Senate President Barau Jibrin, aims to enhance the efficiency and inclusivity of the country’s identity management system.

The bill seeks to achieve this by providing comprehensive provisions that align with global best practices and updating and improving existing regulations.