32% of projects reported in Nigeria failed to meet loan conditions – AfDB

The Managing Director of the Nigeria Department of the African Development Bank, Mr. Lamin Barrow, said that 32% of reported project operations believed to be financed by the bank failed to meet the conditions for entry into force of the loan and first disbursement in December 2021.

He said so during the 2022 Country Portfolio Performance Review Workshop in Abuja on Thursday.

Barrow said: “Despite the progress made over the past year, we need to act quickly to ensure that new projects reach the implementation stage at a faster pace.

“Certainly, start-up delays – attributed to delays in meeting loan effectiveness and first disbursement conditions – accounted for 32% of reported operations as of end-December 2021. There are fruits at hand that we we can harvest by moving faster in processing the signatures of 4 public sector projects approved in 2021.”

According to him, however, there have been increases in the pace of project implementation since 2019.

“Notwithstanding this difficult operating environment, there have been some modest gains since the last CPPR. For example, the pace of project implementation accelerated in 2021, as evidenced by the cumulative disbursement rate, which increased from 57% in 2019 to 66% in 2021.

“Similarly, the portfolio performance rating remained satisfactory at around 3 on a scale of 1 to 4 over the same period. Fiduciary compliance is also improving with the progress seen in the rate of submission of audited financial statements by executing/implementing agencies,” he said.

Barrow added that the rate of reported transactions had fallen from 32% in October 2021 to 25% in December 2021.

He said, “Thanks to better coordination with the Ministry of Finance, Budget and National Planning, as well as concerted actions taken during the last quarter of 2021, operations flagged for implementation issues have decreased from a peak of 32% in October 2021 to 25% in December 2021. However, we must not relax our efforts to further reduce reported transactions and kill the dragon of slow implementation.

He added, “The delayed implementation of projects places a heavy burden on the economy and ultimately undermines our goals of achieving development results. We therefore need to strengthen our accountability mechanisms supported by robust tracking tools to track progress in implementation. »

Barrow further revealed that the AfDB has 63 operations worth $5 billion in its portfolio in Nigeria.

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