Delayed loan approvals could force Nigeria to reject World Bank facilities, AGF Shamseldeen Ogunjimi warns

The Accountant-General of the Federation, Shamseldeen Ogunjimi, has warned that Nigeria may reject future loan facilities from the World Bank if delayed loan approvals and prolonged disbursement timelines continue to affect access to development funding.

Also read: Nigeria’s World Bank debt jumps sharply to $19.89bn

Ogunjimi issued the warning in Abuja during a courtesy visit by a World Bank delegation led by Treed Lane, according to a statement released on Friday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.

The AGF stressed that Nigeria expected prompt processing of funding requests because the facilities involved repayment obligations rather than grants.

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

He described the prolonged timelines as a serious concern capable of disrupting project execution schedules and undermining broader national development objectives.

According to Ogunjimi, Nigeria should not face excessive bureaucratic delays as a responsible borrower seeking development financing for critical sectors.

The Accountant-General urged the World Bank to expedite the approval and disbursement of project funds to support Nigeria’s fiscal priorities and ongoing reforms.

Ogunjimi also disclosed that the Office of the Accountant-General had begun addressing issues previously raised by the global lender, particularly in public financial management and audit reporting systems.

He revealed that the 2023 Audit Report would be submitted to the Office of the Auditor-General for the Federation within two weeks, while work on the 2024 and 2025 reports was already underway.

The AGF further assured the delegation that obsolete infrastructure within the Government Integrated Financial Management Information System was being replaced with modern digital technology to improve efficiency, accountability and service delivery.

The reforms, he said, form part of wider efforts to strengthen transparency and enhance Nigeria’s public financial management framework.

In her remarks, Lane congratulated Ogunjimi on his recent appointment as African Chairman of the Association of Accountants-General and encouraged the Office of the Accountant-General to sustain its digitalisation programme.

Lane also emphasised the importance of timely financial reporting and stronger public finance systems in achieving seamless project implementation.

The warning over delayed loan approvals comes amid growing scrutiny of Nigeria’s rising debt exposure to the World Bank and the pace of disbursement for approved facilities.

The World Bank recently explained why six loans worth about $2bn approved for Nigeria in 2024 had not yet been fully disbursed nearly a year after approval.

According to the bank, project financing is typically released in phases based on agreed milestones and implementation progress rather than through one-time disbursements.

Senior External Affairs Officer at the World Bank, Mansir Nasir, said disbursement schedules depend on project structures and financing instruments.

“Projects financed by the World Bank run for a certain time, which varies depending on the specific project. The total amount of the project is not disbursed as a one-off,” Nasir stated.

Also read: World Bank praises Nigeria as reform model amid growing backing

Recent data released by the Debt Management Office showed that Nigeria’s debt to the World Bank rose to $19.89bn as of December 31, 2025, representing an increase of 11.7 per cent from the previous year.