ABUJA – Nigeria will forfeit $4 million from a $103 million World Bank loan due to substandard audit reports from the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service, according to a recent World Bank project update. The loss is part of the Fiscal Governance and Institutions Project, launched in 2018 to strengthen Nigeria’s public financial management and revenue systems, with a closure date of June 30, 2025.
The $4 million is tied to unmet performance-based conditions (PBCs), as audits for fiscal years 2018–2021, conducted by the Office of the Auditor-General of the Federation, failed to meet international standards, as determined by an Independent Verification Agent. In total, Nigeria will lose $10.4 million, including the $4 million and additional uncommitted technical assistance funds, due to failure to meet 10 performance-based conditions.
Funded through the World Bank’s International Development Association (IDA), the $103 million project aimed to enhance fiscal transparency, improve revenue collection, and address Nigeria’s low tax-to-GDP ratio. Despite some successes, such as the launch of the Electronic Register of Beneficial Owners and improved fiscal data transparency, the audit failures highlight ongoing challenges in meeting global compliance standards.
The cancellation of the $10.4 million underscores gaps in Nigeria’s fiscal governance, raising concerns about inefficiencies in revenue collection and public financial management. With the project nearing its end, the loss emphasizes the need for stronger oversight to maximize such funding opportunities.
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