The World Bank has voiced concerns about $32 million in unaccounted funds from a water infrastructure project in Nigeria, raising fears of potential embezzlement. According to the FY2024 Sanctions System Annual Report, the Bank’s Integrity Vice Presidency (INT) detected discrepancies following a forensic review of the project’s financial records.
The funds were initially allocated to enhance water infrastructure across Nigeria. However, irregularities led the World Bank to intervene to safeguard the integrity of the project. As a precaution, the Bank instructed the Central Bank of Nigeria to refund $22 million while keeping $6 million in the project account for upcoming operational costs.
To prevent further financial inconsistencies, the World Bank has limited the project’s transactions to direct payments only. Key stakeholders, including Nigeria’s Task Team Leader, Operations Manager, and Financial Management Specialist, were engaged in efforts to resolve the issues.
A separate investigation revealed fraudulent activities within the Nigeria Erosion and Watershed Management Project (NEWMAP). The probe led to a 1.5-year debarment of a Nigerian engineering firm and its managing director. The firm was found guilty of submitting false information during the bidding process and replacing critical staff without prior notice, violating the contract’s terms.
The NEWMAP initiative, which aimed to curb soil erosion in select regions of Nigeria, had a total investment of $900 million, funded by the International Development Association and supported by the Global Environment Facility. The engineering firm, involved in a joint venture, was awarded a $1.22 million contract in 2015 for project design and supervision.
The World Bank’s investigation uncovered that the firm misrepresented key personnel’s availability and falsely claimed that a joint venture partner was actively involved. As a result, the firm and its director are barred from participating in World Bank-funded projects for a minimum of 1.5 years.
In related developments, Nigeria’s rising debt profile remains a point of concern, with the Federal Government securing over $6.45 billion in loans from the World Bank in the past 16 months. The total debt has surged following the approval of three new loans totaling $1.57 billion for various projects, contributing to a broader loan sum of $24.09 billion over five years.
Nigerians continue to voice concerns over the sustainability of these financial commitments, especially amid ongoing infrastructure challenges and high unemployment rates. Many worry about the long-term impact of these loans on the nation’s economy.
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