The Federal Government has warned that it may withdraw from World Bank loan arrangements if the approval and release of funds continue to face long delays exceeding six months.
This was disclosed in a statement issued on Friday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa.
According to the statement, the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, made the position known in Abuja while receiving a delegation from the World Bank led by the Manager of the World Bank Team, Treed Lane, during a courtesy visit.
Dr. Ogunjimi stressed that the funds being requested by Nigeria are repayable loans and not grants, noting that unnecessary delays in processing them could discourage the government from proceeding with such agreements.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he stated.
The AGF explained that Nigeria, as a committed borrower, deserves prompt attention and timely processing of its funding applications. He therefore urged the World Bank to accelerate its approval procedures and ensure quicker disbursement of project funds needed for key development programmes.
He also informed the delegation that the OAGF had already begun addressing several concerns previously raised by the World Bank, especially issues relating to public financial management records and audit documentation.
Dr. Ogunjimi revealed that the 2023 Audit Report would be forwarded to the Office of the Auditor-General for the Federation within the next two weeks, adding that work has already commenced on the 2024 and 2025 audit reports.
The Accountant-General further assured the World Bank team that challenges linked to the digitalisation of the Government Integrated Financial Management Information System (GIFMIS) are being tackled. He said outdated infrastructure is currently being replaced with modern technology aimed at improving efficiency and service delivery.
Earlier, Lane congratulated Dr. Ogunjimi on his emergence as the African Chairman of the Association of Accountants-General.
She also encouraged the OAGF to maintain momentum in its digitalisation drive and continue ensuring the prompt submission of professional financial statements to the Office of the Auditor-General for the Federation in order to strengthen smooth public financial management operations.