Nigeria Signals Potential Rejection of Future World Bank Financing
Shamsleddeen Ogunjimi, Nigeria’s Federation Treasurer-General, has issued a critical warning regarding the nation’s future relationship with World Bank financing, citing ongoing delays in approvals and payments. During a meeting in Abuja with a World Bank delegation led by Tree Lane, Ogunjimi emphasized the urgency of addressing these bureaucratic hurdles.
In a statement from Bawa Mokwa, Director of Press and Public Affairs for the Accountant-General’s Office, Ogunjimi voiced his concerns that extended waiting periods for funding approvals could significantly hinder project implementation and disrupt financial planning. He pointedly remarked that if approval processes extend beyond six months, Nigeria may find it necessary to forgo such financing arrangements.
The Treasurer underscored the expectation for prompt processing of funding requests, as these agreements involve repayable loans rather than grants. Prolonged delays, he warned, threaten to compromise the effectiveness of projects reliant on this financing.
Ogunjimi urged the World Bank to expedite their approval and disbursement processes to better align with Nigeria’s pressing development priorities, highlighting the critical nexus between timely funding and the successful realization of planned initiatives.
Progress on Financial Management and Auditing
In response to ongoing concerns raised by the World Bank about public financial management, Ogunjimi indicated that significant strides are being made. He confirmed that efforts are underway to address these issues, with work on the 2024 and 2025 audit reports already in progress. The 2023 audit report, he noted, is set to be submitted to the Federation’s Auditor General’s Office within two weeks.
Furthermore, Ogunjimi announced plans to modernize the Government Integrated Financial Management Information System (GIFMIS) by upgrading outdated infrastructure with advanced technology. These reforms aim to enhance transparency, accountability, and efficiency within Nigeria’s fiscal system, aligning it with international best practices.
World Bank’s Encouragement Amid Debt Concerns
During the delegation’s visit, Tree Lane congratulated Ogunjimi on his appointment as the African President of the Institute of Accountants, encouraging him to sustain the momentum of ongoing digitalization efforts. She emphasized the importance of timely submissions of financial statements to the Auditor General, amidst rising apprehensions regarding Nigeria’s escalating debt exposure to the World Bank and delays in loan disbursements.
Future Financing Tied to Project Milestones
The World Bank clarified that future loan disbursements will not be made in lump sums but will instead be contingent upon specific project milestones and implementation conditions tailored to each financing initiative. The financial institution reiterated that varying implementation schedules linked to performance benchmarks will be collaboratively agreed upon by Nigeria and the bank.
