AGF warns against delays in disbursement of World Bank loans

The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, has warned against delays in World Bank loan approvals and disbursement, noting that the delays are affecting planning and timely development of projects.

Speaking while receiving the World Bank delegation led by Mrs Treed Lane in Abuja, Ogunjimi said that the President Bola Tinubu-led government could walk away from World Bank loan arrangements if approval and disbursement delays continue.

According to a statement by the Director of Press and Public Relations, Bawa Mokwa, the Accountant General explained that Nigeria expected faster processing of loan facilities because the funds were repayable and not grants.

“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements.”

He said that lengthy approval timelines could disrupt project execution and weaken broader development objectives.

Ogunjimi urged the World Bank to “expedite the approval and disbursement of project funds to Nigeria” to support the country’s priorities.

The statement noted that the Accountant General stated that the loans came with repayment obligations, making it necessary for disbursement schedules to align with fiscal planning and implementation frameworks.

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Ogunjimi said that the Office of the Accountant-General of the Federation had begun addressing issues previously raised by the World Bank, especially those relating to public financial management and audit reporting.

The statement further stated that the 2023 Audit Report would be submitted to the Office of the Auditor-General for the Federation within two weeks, while work had already commenced on the 2024 and 2025 audit reports.

Ogunjimi therefore reaffirmed to the delegation that efforts were ongoing to resolve concerns surrounding the digitalisation of the Government Integrated Financial Management Information System.

The AGF explained that outdated infrastructure was being replaced with modern technology to improve efficiency and service delivery.

In her address, the leaders of the World Bank delegation, Mrs Treed Lane congratulated Ogunjimi on his recent appointment as African Chairman of the Association of Accountants-General and encouraged the office to sustain its digitalisation drive and ensure prompt submission of financial statements to the Auditor-General.