Controversy Unleashed: Nigeria Grabs $5.6M World Bank Loan

In a strategic move to enhance government operations, the Nigerian Ministry of Finance, Budget and National Planning has successfully obtained a $5.6 million loan from the World Bank. The funds, allocated under the State Fiscal Transparency, Accountability and Sustainability (SFTAS) project initiated in 2018, are earmarked for the acquisition of crucial resources, including office stationery, furniture, solar inverters, office equipment, and vehicles.

The SFTAS project, aimed at fortifying transparency and accountability at the sub-national level, commenced in 2018 and concluded in 2022. However, ongoing project implementation persists, as detailed in a document acquired from the World Bank by PUNCH.

A total commitment of $1.5 billion was directed toward the SFTAS project in two installments of $750 million each in December 2018 and December 2020. While characterized as a grant to state governments, the funds are recognized as a loan to the Federal Government.

The procurement plan aligns with the World Bank’s guidelines, outlining arrangements for securing goods and services necessary for project execution. Notably, the Home Finance Department received allocations for various purposes, including office stationery, supplies, additional equipment, and furniture for the SFTAS Programme Coordinating Unit.

Major approvals encompassed the provision of spatial data to states, amounting to $4.78 million, along with funds for the procurement of project vehicles, video conferencing equipment, and an Inverter Power Backup System. Despite cancellations and successful completions, certain projects remain under implementation, while others are pending.

This recent loan underscores Nigeria’s significant standing as the top recipient of World Bank loans in 2022, with an impressive disbursement of about $2.9 billion to support the nation’s various initiatives.