By Oluwatoyin Makinde
The Federal Government says it is working to cut the nation’s outstanding lapsed loans from $18 million to $7 million—representing a reduction of about 61 per cent.
Lapsed loans refer to facilities that have expired or become inactive due to non-compliance with agreed terms, often leading to suspension of further borrowing and disruptions in project implementation.
Speaking on Tuesday in Abuja at a workshop for Heads of Project Financial Management Units and Coordinators of World Bank–funded programmes, the Accountant General of the Federation, Dr. Shamseldeen Ogunjimi, said his office has introduced a series of reforms to promote transparency, accountability and efficiency in the management of donor-funded projects.
“We will continue to address issues that hinder projects from attaining high ratings, including lapsed loans and undocumented advances. We are collaborating with the World Bank to reduce outstanding lapsed loans from $18 million to $7 million,” he said.
Ogunjimi said the Office of the Accountant General of the Federation (OAGF) remains committed to ensuring full compliance in the utilisation of World Bank funds, adding that a newly-developed Financial Management Manual (FMM) would guide all project transactions.
He urged project coordinators, accountants and Financial Management Units to strictly adhere to the manual to minimise infractions and sustain positive ratings with the Bank.
According to him, the World Bank has begun the rollout of “Funds Chains,” a blockchain-based platform aimed at improving transparency, tracking and accountability of development project funds. Six projects are currently participating in the pilot phase.
The AGF also disclosed that an agreement has been reached with the World Bank to prevent the removal of project Financial Management staff within six months to project closure, in order to curb the recurrence of lapsed loans and undocumented advances.
“For continuity, the new project officer should work with the outgoing officer for no less than three months to avoid disruption,” he added.
He warned that letters on outstanding lapsed loans and undocumented advances will continue to be issued to project coordinators until compliance improves.
In his remarks, World Bank Country Director for Nigeria, Mr. Mathew Verghis—represented by Mr. Akram Elshirbegy—commended the progress made by the OAGF and called for consistent support to ensure continuity of World Bank projects across the country.
