Nigeria has lost $4 million in World Bank funding after key agencies failed to meet audit standards under a major fiscal reform program.
Nigeria has forfeited $4 million in World Bank funding following audit failures by two major agencies—the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service—covering the 2018–2021 financial years. The deduction stems from Nigeria’s inability to meet performance benchmarks under the $103 million Fiscal Governance and Institutions Project, a public financial management reform initiative financed by the World Bank’s International Development Association (IDA).
A World Bank restructuring paper released in June 2025 stated that the audit milestone was “not achieved.” According to the report, audit submissions failed to meet international standards, disqualifying Nigeria from accessing the $4 million tied to that result.
Despite the setback, Nigeria has made strides in fiscal transparency and non-oil revenue growth, with a 153% outturn in 2024, up from 64.9% in 2018. The government also surpassed targets by publishing 10 validated economic data sets and launching key transparency tools. The project’s final disbursement will now total $96.04 million.