Nigeria may reject World Bank loans over delays – Accountant General

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The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, has stated that Nigeria may reject loan facilities from the World Bank if delays in approval and disbursement persist, saying prolonged timelines could undermine the country’s willingness to proceed with such arrangements.

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The warning was contained in a statement issued on Friday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.

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Ogunjimi, who spoke in Abuja during a courtesy visit by a World Bank delegation led by Mrs Treed Lane, stressed that Nigeria expected timely processing of funding requests, given that the facilities are loans and not grants.

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He said, “If approvals take more than six months, the Nigerian Government may no longer honour such arrangements.”

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The AGF noted that as a responsible borrower, Nigeria should not be subjected to prolonged approval processes that could affect project execution timelines and broader development objectives.

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He therefore urged the World Bank to “expedite the approval and disbursement of project funds to Nigeria” to support the country’s priorities.

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Ogunjimi emphasised that the loans carry repayment obligations, making it imperative that disbursement processes align with project schedules and fiscal planning frameworks.

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He further disclosed that the Office of the Accountant-General of the Federation had begun addressing key issues raised earlier by the World Bank, particularly in public financial management and audit reporting.

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According to him, the 2023 Audit Report would be submitted to the Office of the Auditor-General for the Federation within two weeks, while work on the 2024 and 2025 audit reports was already underway.

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The AGF also assured the delegation that steps were being taken to resolve concerns around the digitalisation of the Government Integrated Financial Management Information System, noting that obsolete infrastructure was being replaced with modern technology to improve efficiency and service delivery.

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He said the reforms were part of broader efforts to strengthen transparency, accountability, and the overall public financial management system in Nigeria.

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Earlier in her remarks Lane congratulated Ogunjimi on his recent appointment as African Chairman of the Association of Accountants-General.

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Lane also urged the Office of the Accountant-General to sustain its digitalisation drive and ensure the timely presentation of financial statements to the Auditor-General, noting that such measures were critical to achieving seamless public financial management processes.

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The World Bank earlier explained why about six loans worth $2bn, signed for Nigeria in 2024, were yet to be disbursed nearly a year after the bank’s approval.

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This came amid recent reports that the World Bank approved a total of $8.40bn (N12.89tn) in fresh loans to the country over the past two years, based on data from the bank’s official website.

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Saturday PUNCH gathered that the approvals, covering June 2023 to August 2025, spanned 15 projects in energy, education, healthcare, rural infrastructure, and governance.

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The amount, converted at the official exchange rate of N1,535.93/$ as of August 11, 2025, comprises $1.95bn (N2.99tn) from the International Bank for Reconstruction and Development and $6.50bn (N9.98tn) from the International Development Association.

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The IBRD provides loans on commercial or near-commercial terms to middle-income and creditworthy low-income countries, while the IDA offers highly concessional loans and grants to the world’s poorest nations.

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Responding to an enquiry by our correspondent, the Senior External Affairs Officer at the World Bank, Mansir Nasir, noted that funds for projects financed by the institution were not disbursed at once but in instalments, depending on the nature of the project and financing instruments.

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“Projects financed by the World Bank run for a certain time, which varies depending on the specific project. The total amount of the project is not disbursed as a one-off, but rather in instalments depending on the financing instruments—e.g., IPF or PforR—which require certain milestones for specific disbursement values.

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“If you look at the portal, you will see the specific disbursement timelines and values,” Nasir added.

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He added that before a new project can begin disbursement, it must meet the agreed conditions between the Federal Government and the World Bank.

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The PUNCH recently reported that Nigeria’s debt to the World Bank rose by $2.08bn in one year to $19.89bn as of December 31, 2025, according to an analysis of external debt stock data released by the Debt Management Office.

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The figure represents an 11.7 per cent increase from the $17.81bn owed to the global lender as of December 31, 2024.

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