Nigeria to Lose $10m World Bank Loan Over Failure to Meet Auditing Conditions

The Federal Government is set to forfeit $10 million from a World Bank credit due to audit shortcomings and delays in implementing key projects. The fund is part of the $103 million Fiscal Governance and Institutions Project (FGIP), a public financial management initiative.

According to the World Bank’s June 2025 restructuring paper, the government failed to meet 10 performance-based conditions, including a $4 million audit of key revenue-generating agencies, which was deemed substandard. Other cancelled items include the deployment of a National Budget Portal and implementation of a Revenue Assurance and Billing System.

Despite the setbacks, the FGIP recorded progress in other areas, including revenue performance, with non-oil revenue outturn reaching 153% of the budgeted target in 2024. The World Bank attributed the increase to Nigeria’s exchange rate unification policy, improved tax administration, and reforms that automated revenue remittances.

The final disbursement on the project is estimated at $96.04 million, representing 93% of the pre-cancellation total of $103 million.