FG warns World Bank over six-month delay in loan approvals

Nigeria’s Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, has warned that the Federal Government may halt engagement with the World Bank loan facilities if persistent delays in approvals and disbursement continue to slow down project execution.

Ogunjimi issued the caution in Abuja on Friday while receiving a World Bank delegation led by Mrs. Treed Lane, stressing that Nigeria expects faster processing of loan requests, especially as the funds involved are repayable obligations rather than grants.

He said prolonged bureaucratic bottlenecks—sometimes lasting over six months—were becoming counterproductive to national development planning.

“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he warned, urging the World Bank to streamline its processes to ensure timely release of funds for ongoing projects.

According to him, delays in disbursement often disrupt implementation timelines for critical infrastructure and social development programmes across the country.

Ogunjimi reaffirmed that Nigeria, as a sovereign borrower, must not be subjected to approval delays capable of undermining fiscal planning and project delivery. He added that ongoing reforms within his office are aimed at strengthening accountability and improving public financial management systems.

He also disclosed that efforts were underway to address concerns previously raised by the World Bank, particularly in areas relating to audit documentation and digital financial reporting systems. The 2023 Audit Report, he said, would be submitted to the Office of the Auditor-General within two weeks, while preparations for 2024 and 2025 were ongoing.

The Accountant-General further noted that upgrades were being made to the Government Integrated Financial Management Information System (GIFMIS), with outdated infrastructure being replaced to improve efficiency and transparency.

Earlier, the World Bank delegation commended Nigeria’s ongoing reforms. Mrs. Treed Lane also congratulated Ogunjimi on his emergence as African Chairman of the Association of Accountants-General and encouraged continued improvements in financial reporting and digitalisation efforts.

The warning comes amid rising concerns over delayed disbursement of several approved loans. Reports indicate that about six loans worth $2 billion approved in 2024 remain undisbursed nearly a year after approval.

Overall, data shows that the World Bank has approved about $8.4 billion in loans for Nigeria between June 2023 and August 2025, covering 15 projects in energy, education, healthcare, rural infrastructure, and governance.

These include funding from both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the World Bank’s concessional lending arm for lower-income countries.

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