The Federal Government is set to forfeit $4 million from a World Bank loan after failing to meet international audit standards on a critical revenue reform involving the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service. The funds were part of the $103 million Fiscal Governance and Institutions Project, a public financial management initiative funded through a credit facility from the International Development Association (IDA).
According to a World Bank restructuring paper dated June 2025, the revenue assurance audits for the 2018 to 2021 financial years were deemed unsuccessful by an Independent Verification Agent. The Office of the Auditor-General of the Federation had submitted reports that did not align with global auditing standards, leading to the audit’s rejection and the loss of performance-based funding.
In total, the government failed to meet ten key conditions required under the project before its scheduled closure on June 30, 2025. Consequently, the Federal Ministry of Finance formally requested the cancellation of $10.4 million in project funds, including $0.9 million in unused technical assistance funds and $9.5 million tied to unmet performance targets.
