The Nigerian government has forfeited approximately $4 million (about N6.2 billion at N1,568 per dollar) from a World Bank loan after failing to meet key audit standards in its revenue-generating agencies, according to a World Bank restructuring paper dated June 2025.
The forfeited funds were part of the $103 million Fiscal Governance and Institutions Project, a public financial management initiative financed through a credit facility from the International Development Association.
Failed Audit Standards
The revenue assurance audit covering the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service for the 2018 to 2021 financial years was assessed as "not achieved" because the submitted reports did not meet international auditing standards.
"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," the document stated.
"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."
Additional Cancelled Funds
The unsuccessful audit was one of ten performance-based conditions under the project that the government failed to deliver before the closing date of June 30, 2025. As a result, the Federal Ministry of Finance formally requested the cancellation of $10.4 million 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 revealed.
Further analysis shows that $4.5 million was tied to the uncompleted Revenue Assurance and Billing System, while $1 million was allocated to the development of a National Budget Portal. The Budget Office of the Federation, responsible for the portal, did not submit any evidence of achievement.
Additionally, $0.9 million in technical assistance funding remained uncommitted and has also been cancelled.
The forfeited $4 million could have addressed some of Nigeria's infrastructural deficits at a time when the country faces significant economic challenges.
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