World Bank Uncovers $32 Million of Missing Funds from Nigerian Water Project

Oluwasegun SanusiNovember 18, 20241 Mins read800

The World Bank has disclosed that $32 million is unaccounted for in the Nigerian water infrastructure project, raising serious concerns about financial mismanagement and the project’s integrity.

This revelation is contained in the bank’s FY2024 Sanctions System Annual Report and comes after a forensic investigation by the bank’s Integrity Vice Presidency, INT. Earlier, funds meant to improve access to water infrastructure in Nigeria were misaccounted for, with the global lender acting accordingly.

Further risks have been mitigated with collaboration from the World Bank and Technical Task Team within Nigeria, led by the Task Team Leader, Operations Manager, and Financial Management Specialist.

The bank has requested for the reimbursement of $22 million from the Central Bank of Nigeria as part of recovery. In comparison, $6 million has been left in the project account for pending operating expenses.

The Bank has subsequently restricted financial transactions on the project to only direct payments, in addition to implementing closer monitoring mechanisms.

INT identified the risk of misappropriation and then worked with the project team to develop a course of action that would account for the remaining unaccounted funds, the report noted.

The investigation also found fraud regarding a Nigerian engineering company and its managing director about the Nigeria Erosion and Watershed Management Project, NEWMAP. It was debarred for 1.5 years with conditional release because of irregularities relating to bidding and implementation processes.

NEWMAP was designed to reduce, sustainably, vulnerability to soil erosion in selected sub-watersheds that fall under Nigeria’s scope. Considerable financing included $500 million from the International Development Association and the Global Environment Facility-approved grants.

However, setbacks occurred, with additional financing of $300 million and $100 million credit in 2019 failing to avert financial irregularities.

The World Bank reiterated calls for better financial management and control of Nigeria’s development projects to protect the funds and ensure they serve the purpose they were meant for.

Ondo Governorship: Tinubu Urges Aggrieved Candidates to Seek Justice in Court

NJC Retires Imo Chief Judge and Yobe Kadi for Age Falsification, Suspends Two Judges for Misconduct