World Bank Flags $32m Missing in Nigeria’s Water Project Funds

The World Bank has uncovered a staggering $32 million in unaccounted funds in a Nigerian water sector project, sparking concerns of potential embezzlement and financial mismanagement.

The discovery, made through a forensic review, has prompted the Bank’s Integrity Vice Presidency (INT) to take action to safeguard the integrity of the project.

The funds, which were intended to enhance water infrastructure across Nigeria, were found to be inadequately accounted for, leading to the suspension of further financial operations and recommendations for reimbursement.

According to the FY2024 Sanctions System Annual Report, the World Bank engaged key Nigerian project officials, including the Task Team Leader and Financial Management Specialist, to address the discrepancies.

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As part of the resolution, the Central Bank of Nigeria has been directed to refund $22 million of the misallocated funds, while the remaining $6 million will stay in the project account to cover operational expenses.

The project’s financial activities have also been restricted to direct payments to prevent further irregularities.

The World Bank has also sanctioned a Nigerian engineering firm, barring it and its managing director from participating in World Bank-financed projects for 1.5 years due to fraudulent activities uncovered in the Nigeria Erosion and Watershed Management Project (NEWMAP).

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The firm misrepresented staff availability and violated contract terms during the project’s execution.

The investigation revealed that the firm, part of a joint venture, had falsely claimed the participation of key personnel and a partner in the project.