Picnews
The Federal Government has drawn a clear line on how long it is willing to wait for World Bank funds to arrive after approval, warning that loans delayed beyond six months may be cancelled outright. The message was delivered on May 8, 2026, by Accountant-General of the Federation Dr. Shamseldeen Babatunde Ogunjimi during a meeting with a World Bank delegation in Abuja. He told the team, led by Mrs. Treed Lane, that Nigeria’s patience with prolonged bureaucratic processes had run thin, and that the government would not continue to honour arrangements that drag on unnecessarily when repayment obligations remain.
Ogunjimi’s remarks reflect a growing frustration in Abuja over the gap between loan approval and actual disbursement. He pointed out that Nigeria is a borrower, not a recipient of grants, and that the facilities come with interest and repayment schedules that must align with project timelines. When approvals stall for eight, nine, or more months, he argued, the financing loses its value for the projects it was meant to support, and the government is left servicing a commitment without seeing the funds on the ground. That disconnect, he said, erodes confidence in the borrowing process.
The warning comes against the backdrop of reports that several large facilities signed in 2024 are yet to be disbursed. About six loans worth $2 billion approved by the World Bank last year remain undisbursed nearly a year later, contributing to a broader concern that procedural bottlenecks are slowing Nigeria’s development agenda. Over the past two years, the Bank has approved $8.40 billion in fresh loans for Nigeria across 15 projects spanning energy, education, healthcare, rural infrastructure, and governance. The FG wants those commitments translated into actual cash flow faster.
Ogunjimi framed the six-month ultimatum not as a rejection of multilateral cooperation but as a demand for more responsive treatment. He said Nigeria respects its obligations as a responsible borrower and has been working to address the issues the World Bank has raised around public financial management and audit reporting. The Office of the Accountant-General has committed to submitting the 2023 Audit Report to the Auditor-General within two weeks, with work on the 2024 and 2025 reports already underway. He also noted that the government is upgrading the Government Integrated Financial Management Information System by replacing obsolete infrastructure to improve speed and transparency.
The Accountant-General urged the World Bank to reciprocate by expediting its internal approval and disbursement processes. He argued that if both sides are serious about project delivery, then the timeline from board approval to fund release must be compressed to match the realities of project execution and budget cycles. Delay, he said, does not only affect physical infrastructure but also impacts the credibility of Nigeria’s fiscal planning and its ability to meet development targets tied to the loans.
Mrs. Lane, leading the World Bank delegation, acknowledged the concerns and called for continued collaboration. She encouraged the OAGF to sustain its digitalisation drive and ensure timely presentation of financial statements, noting that those measures are critical to seamless public financial management. She maintained that the Bank remains committed to supporting Nigeria’s development priorities, but also implied that improvements on the government’s side would help accelerate processing.
The broader context is a shift in how Nigeria is engaging with multilateral lenders. The government is signalling that it will no longer accept long waits as normal, especially when the loans are tied to specific projects with fixed timelines. Officials in Abuja see this as a matter of fiscal discipline and respect for the country’s position as a paying borrower. The stance is likely to influence negotiations on future facilities and may push other lenders to review their disbursement timelines.
For now, the message is clear: if the World Bank cannot release approved funds within six months, Nigeria is prepared to walk away and seek alternative financing. The government insists this is not about turning its back on partnerships, but about ensuring that borrowing serves its intended purpose without unnecessary delay. How the World Bank responds in the coming weeks will determine whether the relationship adjusts to this new expectation or whether Nigeria follows through on the threat.
