The World Bank has uncovered a major financial discrepancy in Nigeria's water sector, identifying $32 million in unaccounted funds.
This revelation was made through a forensic review conducted by the Bank’s Integrity Vice Presidency (INT), as detailed in the recently released FY2024 Sanctions System Annual Report.
The missing funds were originally intended to enhance water infrastructure in Nigeria but were not properly documented, raising concerns about potential embezzlement and mismanagement.
In response to these findings, the World Bank engaged with key stakeholders of the project, including Nigeria’s Task Team Leader, Operations Manager, and Financial Management Specialist, to address the issue and mitigate further risks.
As part of the recovery efforts, the Central Bank of Nigeria has been instructed to reimburse $22 million, while $6 million remains in the project account to cover ongoing operational expenses. To prevent further irregularities, the World Bank has restricted the project's financial operations to direct payments.
Further investigations revealed that the World Bank has also imposed a 1.5-year debarment with conditional release on a Nigerian engineering firm and its managing director for fraudulent practices related to the Nigeria Erosion and Watershed Management Project. This action follows an investigation by INT, which uncovered instances of misrepresentation during the bidding and execution phases of the project.
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