The Federal Government has warned that Nigeria may withdraw from or decline loan arrangements with the World Bank if approval and disbursement processes continue to face prolonged delays.
The warning was issued by Accountant – General Shamseldeen Babatunde Ogunjimi during a courtesy visit by a World Bank delegation led by Mrs. Treed Lane in Abuja.
According to a statement released by the Office of the Accountant-General of the Federation (OAGF), Ogunjimi stressed that funds being sought from the World Bank were loans rather than grants and should therefore be processed with greater urgency.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” Ogunjimi stated.
The Accountant-General said Nigeria, as a responsible borrower, deserved timely processing and release of project funds intended to support key development priorities.
Concerns over slow multilateral financing
The development highlights growing concerns within the Federal Government over delays associated with multilateral financing, especially as Nigeria increasingly relies on external funding to support infrastructure projects, fiscal reforms, social investments and economic development programmes.
Although concessional loans from institutions such as the World Bank are generally cheaper than commercial borrowing, officials argue that delayed approvals can disrupt budget implementation, stall projects and weaken the impact of planned interventions.
Ogunjimi’s comments suggest that the government now expects multilateral funding arrangements to operate with the urgency of conventional lender-borrower transactions.
Recently, the World Bank approved a $500 million International Development Association (IDA) credit facility for Nigeria under the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project aimed at boosting agricultural productivity and food security.
The institution had also earlier approved another $500 million financing package targeted at improving access to credit for micro, small and medium enterprises (MSMEs) in Nigeria.
