The Accountant-General of the Federation, Shamseldeen Ogunjimi, has warned that Nigeria could reconsider future loan agreements with the World Bank if delays in approval and disbursement continue.
Speaking during a meeting with a World Bank delegation in Abuja, Ogunjimi expressed concern over what he described as lengthy bureaucratic processes that slow down access to development funds needed for key national projects.
According to a statement issued by the Office of the Accountant-General, the AGF stressed that Nigeria expects faster processing timelines since the facilities involved are loans that must eventually be repaid — not grants.
Nigeria Raises Concerns Over Loan Delays
Ogunjimi stated that delays stretching beyond six months could affect Nigeria’s willingness to proceed with future arrangements with the World Bank.
He noted that prolonged approval timelines can disrupt project implementation schedules, weaken fiscal planning and slow down development objectives across critical sectors.
The Accountant-General urged the World Bank to accelerate the approval and release of funds tied to ongoing and future projects in Nigeria.
FG Moves to Address World Bank Concerns
The AGF also disclosed that the Federal Government has begun resolving several issues previously raised by the World Bank, especially regarding audit reporting and public financial management.
According to him:
Nigeria’s 2023 Audit Report will be submitted to the Auditor-General within two weeks
Work on the 2024 and 2025 audit reports is already in progress
Government financial systems are being upgraded through digitalisation reforms
He added that outdated infrastructure within the Government Integrated Financial Management Information System (GIFMIS) is currently being replaced with newer technology to improve efficiency, accountability and transparency.
World Bank Reacts
The World Bank delegation, led by Mrs Treed Lane, congratulated Ogunjimi on his recent appointment as African Chairman of the Association of Accountants-General.
The delegation also encouraged Nigeria to sustain reforms aimed at improving digital financial management systems and timely submission of financial statements.
Why Some World Bank Loans Have Not Been Released
The latest development comes amid concerns over delayed disbursement of several World Bank-approved loans to Nigeria.
Reports show that nearly six loan facilities worth about $2 billion approved in 2024 are yet to be fully disbursed.
Responding to the concerns, the World Bank explained that project funds are usually released in phases rather than as a one-time payment.
According to the institution, disbursement depends on:
- Project milestones
- Financing structure
- Fulfilment of agreed conditions between Nigeria and the bank
The bank noted that projects financed under different funding instruments follow separate timelines and performance benchmarks before additional funds can be released.
Nigeria’s Rising Debt to the World Bank
Recent data released by the Debt Management Office showed that Nigeria’s debt to the World Bank rose significantly over the past year.
As of December 2025:
Nigeria owed the World Bank approximately $19.89 billion
This represents an increase of over 11% compared to 2024 figures
The loans span multiple sectors including:
Energy
Education
Healthcare
Rural infrastructure
Governance reforms
Why This Matters
The warning from the Accountant-General highlights growing concerns about Nigeria’s increasing dependence on foreign loans and the efficiency of accessing those funds.
Analysts say delays in disbursement could affect major infrastructure projects, economic reforms and public sector programmes already facing funding pressure.
The issue also raises broader questions about debt sustainability, accountability and the pace of economic reforms in Nigeria.
- World Bank