The World Bank has uncovered a significant financial discrepancy involving $32 million in a water infrastructure project approved for Nigeria. According to the Bank’s FY2024 Sanctions System Annual Report, the funds, intended to enhance Nigeria’s water sector, were flagged as unaccounted for, raising concerns about project integrity and financial management.
The Bank’s Integrity Vice Presidency (INT), tasked with identifying and mitigating risks in funded projects, discovered the issue and immediately alerted the operations team. “INT followed up on risks identified regarding a project in Nigeria’s water sector and flagged to operations the risk, which was associated with $32 million of unaccounted funds,” the report stated.
To resolve the matter, the World Bank engaged with key stakeholders, including Nigeria’s task team leader, operations manager, and financial management specialist. Following this intervention, the Central Bank of Nigeria (CBN) has been instructed to refund $22 million, while $6 million has been retained in the project account to cover operational expenses.
Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group, stressed the critical need to prevent corruption in developmental projects.
“Corruption in any form impedes development, limits investment, increases costs, and slows progress. When project funds are mismanaged, it disproportionately harms the poorest and most vulnerable,” Zhang noted.
This development underscores the World Bank’s ongoing commitment to combating corruption and ensuring that funds are used for their intended purpose. The report highlights the critical role of the Bank Group’s sanctions system in addressing fraud and safeguarding development goals.
