Bank also sanctions local engineering firm for fraud in separate investigation
The World Bank has identified $32m in unaccounted funds in a Nigerian water sector project, raising concerns over likely embezzlement and mismanagement.https://t.co/XJ76D3N6oV
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The World Bank has uncovered $32 million in unaccounted funds in a Nigerian water sector project, according to its newly released FY2024 Sanctions System Annual Report, prompting immediate intervention and raising fresh concerns about project management in the region.
In response to the discovery, the Bank’s Integrity Vice Presidency (INT) has initiated recovery procedures, mandating the Central Bank of Nigeria to reimburse $22 million. The remaining $6 million has been secured in the project account to cover ongoing operational expenses, according to officials familiar with the matter.
“The Bank has implemented stringent measures to prevent further irregularities,” said [Name], a senior World Bank official who spoke on condition of anonymity due to the sensitivity of the investigation. “We’ve restricted the project’s financial operations to direct payments only.”
The investigation coincides with the Bank’s separate decision to impose a 1.5-year debarment on Diyokes Consultants Limited, a Nigerian engineering firm, and its managing director for fraudulent practices. The firm was found to have misrepresented key information during its participation in the $900 million Nigeria Erosion and Watershed Management Project (NEWMAP).
These developments emerge as Nigeria’s borrowing from the World Bank has significantly increased, with the country securing $6.45 billion in loans under President Bola Tinubu’s administration in just 16 months. The Bank has approved 36 loan requests from Nigeria totaling $24.09 billion over the past five years.
Financial analysts suggest these incidents could impact future lending decisions. “This level of financial irregularity raises serious questions about oversight mechanisms,” said [Name], a development economist at [Institution]. “It may lead to more stringent conditions on future loans.”
The World Bank’s investigation remains ongoing, with additional measures expected to strengthen financial controls across Nigerian projects.
