Nigeria risks losing $80m of World Bank funding due to disagreements between ministries

LEGISLATORS have warned that Nigeria runs the risk of losing over $80m in World Bank funding meant for strengthening the capacity of the country’s small and medium-scale enterprises (SME'S) due to squabbling among government ministers.

Apparently, squabbles and a lack of cohesion among public officials has hampered Nigeria's capacity to disburse $160m secured from the World Bank to build the capacities of the SMEs in several sectors of the economy, including agriculture, manufacturing and information technology under the project tagged Growth and Employment in States (Gems). According to the World Bank, the objective of the Gems project is to increase growth and employment in the participating states.

Under the project being supervised by finance ministry and implemented by the ministry of industry, trade and investment, grants are given to deserving SMEs to support growth and employment. However, the project, which has a terminal date of Friday, September 7 could not be fully implemented within the five-year period agreed with the World Bank.

Hon Mark Gbillah, the deputy chairman of the House of Representatives Committee on Petroleum Resources (Upstream), who had been active on the Gems project, accused the ministry of industry, trade and investment of attempting to subvert the original purpose of the funds. He added that while more than 4,000 SMEs were originally meant to benefit from the funds, the ministry only wanted 25 SMEs to benefit from the funding.

Also, Hon Gbillah accused the finance ministry of failing to show adequate leadership and proper supervision of the project. In a letter to the World Bank, Hon Gbillah also accused the lender of colluding with the ministry of industry, trade and investment to subvert the programme.

Although funds have been expended on securing training for potential beneficiaries, consultancy services and procuring personnel for the project, the actual disbursement to the SMEs has been stalled by lack of harmonised programme of action. More than $80m that has not been disbursed or used on other procurements would have to be returned to the coffers of the International Development Association, the World Bank arm responsible for funding the project.

While some of the SMEs that applied to participate in the programme are said to have received some part of the grants, others are said to have got nothing after they have been adjudged to qualify for the grants. Some of the potential beneficiaries are now concerned that once the money is returned to the World Bank, they will no longe4r have access to the grants.