$5.6 Million World Bank Loan Granted to Finance Ministry for Procuring Stationery, Furniture, Others

Nigeria’s Home Finance Department, a division of the Ministry of Finance, Budget, and National Planning, has secured a $5.6 million loan from the World Bank. The funds, earmarked for 21 essential items, cover a spectrum from office stationery and furniture to solar inverters, office equipment, and vehicles.

This financial injection falls under the umbrella of the State Fiscal Transparency, Accountability, and Sustainability (SFTAS) project, launched in 2018 with the aim of bolstering transparency and accountability at the sub-national level. While the project officially concluded in 2022, ongoing implementation persists, as confirmed by documents obtained from the World Bank.

A total commitment of $1.5 billion from the World Bank, distributed in two tranches of $750 million each in December 2018 and December 2020, underscores the magnitude of the SFTAS project. Notably, though the funds are granted to state governments, they constitute a loan to the Federal Government.

The procurement plan, aligning with World Bank guidelines, outlines the allocation of funds covering February 2019 to August 2020. Detailed breakdowns include $25,713 for office stationery, $39,357 for additional office equipment, and $64,190 for furnishing the SFTAS Public Service Institute space. Additional disbursements cater to video conferencing equipment, spatial data provision, and project vehicles.

Despite the comprehensive procurement plan, the report reveals that of the 21 proposed items, two were canceled, four successfully completed, and one under implementation. Three projects are pending implementation, while 11 were only signed as of December 2023.

It’s noteworthy that Nigeria leads in fresh loans from the World Bank in 2022, with approximately $2.9 billion released to the country. A separate report highlights Nigeria servicing around $14.12 billion from 108 approved loans, with the oldest dating back to 1989 and the most recent approved in 2018.

Ibrahim Mohammed, the SFTAS Communications Specialist, clarified that procurement of necessary items is standard procedure at the project’s initiation. He emphasized that these acquisitions are dedicated to ensuring the successful implementation of the project, benefitting implementing agencies and partners involved in the initiative.