Audit flop: Nigeria forfeits $4m from World Bank loan

Edun

The Federal Government is expected to lose $4m from a World Bank loan after failing to meet auditing standards on a key revenue reform covering the Federal Inland Revenue Service and the Nigeria Customs Service.

The fund formed part of the $103m Fiscal Governance and Institutions Project, a public financial management initiative financed through a credit facility from the International Development Association.

According to the World Bank’s restructuring paper dated June 2025, the revenue assurance audit covering the FIRS and Customs for the 2018 to 2021 financial years was assessed as not achieved because the reports submitted did not meet international auditing standards.

A World Bank document obtained by The PUNCH on Sunday read, “Revenue assurance audit of Main Income Generating Agencies, including the Federal Inland Revenue Service and the Nigeria Customs Service for FY 2018 – 2021 with an allocation of $4m.

“These Intermediate Results to be implemented by the Office of Auditor-General of the Federation were assessed as not achieved by the Independent Verification Agent because the reports submitted for verification did not meet the requisite international auditing standards.”

The failed audit was one of ten performance-based conditions under the project that the government could not deliver before the closing date of June 30, 2025. As a result, the Federal Ministry of Finance formally requested the cancellation of $10.4m in project funds.

“The FMF has requested cancellation of $0.9m of unused funds for Technical Assistance and $9.5m, which is the amount allocated to 10 Performance-Based Conditions, which will not be achieved by the close of the Project on June 30, 2025,” the document read. Punch