Nigeria warns World Bank over delays in loan approvals and disbursements.
Nigeria warns it may reject future World Bank loans over delays
Nigeria’s Accountant General of the Federation, Shamseldeen Ogunjimi, has warned that the country may decline future World Bank loan arrangements if delays in approvals and disbursements persist.
Mr Ogunjimi made the remarks in Abuja during a meeting with a World Bank delegation led by Treed Lane.
According to the accountant general, prolonged bureaucratic procedures surrounding development financing could negatively affect project execution and fiscal planning.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements.”
He stressed that Nigeria expects quicker processing because the financing facilities are repayable loans rather than grants.
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Government says delays could affect national project implementation.
Mr Ogunjimi explained that delayed access to approved funds could undermine the effectiveness of projects tied to the financing agreements.
He also disclosed that his office has begun addressing concerns previously raised by the World Bank regarding public financial management and audit reporting.
According to him, the 2023 Audit Report will be submitted to the Office of the Auditor-General for the Federation within two weeks, while work on the 2024 and 2025 reports is ongoing.
“The reforms are aimed at strengthening transparency, accountability and efficiency.”
The accountant general also revealed that the government is modernising the Government Integrated Financial Management Information System (GIFMIS) by replacing obsolete infrastructure with updated technology.
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World Bank says loan disbursements depend on project milestones.
Speaking during the visit, World Bank representative Treed Lane congratulated Mr Ogunjimi on his recent appointment as African Chairman of the Association of Accountants-General.
She also encouraged Nigeria to sustain its ongoing digitalisation reforms and ensure the timely submission of financial statements.
The World Bank explained that its loans are not disbursed in lump sums but are tied to specific project milestones and agreed implementation benchmarks.
“Disbursement timelines vary depending on agreed project conditions and performance benchmarks.”
The latest development comes amid increasing scrutiny over Nigeria’s growing debt exposure and concerns about the pace of loan implementation across critical sectors.
Economic analysts say improving transparency, project execution and accountability will remain essential as Nigeria continues to engage international financial institutions.
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(Source: Office of the Accountant-General of the Federation & World Bank Meeting)
🤔 Question Board
Should Nigeria reduce dependence on foreign development loans and focus more on internally generated revenue?
Development financing can support economic growth, but delays in approvals and implementation often reduce the real impact of such loans. Efficient project execution and stronger domestic revenue systems remain critical for long-term economic stability.