The federal government is poised to forfeit $10 million from a $103 million World Bank loan under the Fiscal Governance and Institutions Project (FGIP), following inadequate audits, missed deadlines, and unmet reform targets. Although there have been some improvements in revenue generation and data transparency, key milestones remain unachieved as the June 30 deadline approaches.
The $10 million in performance-based funds is being withdrawn due to several shortcomings:
- Poor audit reports from the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service, which failed to meet international standards.
- Delays in launching the National Budget Portal.
- Incomplete Treasury Single Account (TSA) transfers.
- Lagging capital project execution, currently at only 50%.
A June 2025 restructuring document from the World Bank reveals that Nigeria’s Ministry of Finance has formally requested the cancellation of $10.4 million. This includes:
- $4 million due to flawed audits from FIRS and Customs.
- $1 million related to the unlaunched National Budget Portal.
- $4.5 million for the delayed Revenue Assurance and Billing System (RABS), now expected to be completed after the project’s conclusion.
Despite exceeding its 2024 non-oil revenue target by 153%, the FGIP continues to face systemic hurdles such as weak real-time accountability, poor audit outcomes, and stalled automation reforms. The World Bank acknowledged progress in transparency and tax reforms but rated overall project monitoring as “moderately unsatisfactory.”
With final disbursements estimated at $96.04 million—93% of the original loan—Nigeria risks damaging its international reform reputation unless key digital infrastructure projects like RABS are urgently accelerated.
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