Nigeria $32 Million Missing from Nigeria’s Water Infrastructure, World Bank Reports

The World Bank uncovered $32 million in unaccounted funds from Nigeria’s water project, as revealed in its FY2024 Sanctions System Annual Report. The missing funds were meant for water infrastructure development. The bank is working with Nigerian authorities to recover the amount and ensure project integrity.

The World Bank recently unveiled a significant financial discrepancy in Nigeria's water project, revealing that $32 million in allocated funds were unaccounted for. The discovery, detailed in the bank's FY2024 Sanctions System Annual Report, raised serious concerns about the transparency and management of funds intended to improve the country's water infrastructure.

According to the World Bank, the missing funds were part of a larger initiative aimed at enhancing Nigeria’s water sector. The report noted that risks identified in the project prompted a follow-up investigation, which uncovered the $32 million shortfall. The World Bank’s Integrity Unit (INT) flagged the irregularity, warning that the situation could jeopardize the project’s progress and integrity.

In response to the issue, the World Bank took immediate steps to address the missing funds. The bank collaborated with key stakeholders, including Nigeria’s task team leader, operations manager, and financial management specialist, to resolve the situation. The Central Bank of Nigeria (CBN) was also engaged, with recommendations for a reimbursement of $22 million. The remaining $6 million will stay in the project account to cover anticipated operational expenses.

The discovery of the unaccounted funds is a significant setback for the water project, which is critical to improving access to clean water in Nigeria. It also underscores the ongoing challenges of managing large-scale infrastructure projects in the country, raising questions about financial accountability and transparency in government-funded initiatives. The World Bank's intervention aims to protect the integrity of the project and ensure the funds are used as intended.