The recent revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria has led to the freezing of $5.7 million in World Bank funds allocated to Yobe State, hindering progress on critical development projects in the region.
The affected funds were part of the Multi-Sectoral Crisis Recovery Project (MCRP), a World Bank-supported initiative aimed at revitalising crisis-affected communities in northeastern Nigeria, particularly in Yobe, Borno, and Adamawa states.
According to a project restructuring report obtained by Sunday PUNCH, only $500,000 of the funds deposited with Heritage Bank has so far been recovered by Yobe State. The remaining $5.2 million remains inaccessible.
“Approximately $5.7 million allocated to Yobe State was inaccessible at Heritage Bank following the revocation of its licence by the CBN on June 3, 2024.
The state successfully recovered over $0.5 million of these funds,” the report stated.
The World Bank team noted that efforts are ongoing, in collaboration with financial advisers, to develop the best approach for recovering the remaining amount.
Launched in 2017, the MCRP is scheduled to close officially on May 31, 2025.
The project aimed to improve access to basic services, rebuild infrastructure, and enhance livelihoods in communities devastated by conflict.
Despite ongoing security challenges, it has disbursed its full allocation of $378.2 million.
To date, the project has benefited more than 1.4 million people, completing nearly 2,000 subprojects including roads, bridges, schools, and water and sanitation systems.
However, some infrastructure projects in Yobe and Adamawa remain unfinished due to insecurity.
While the project overall has been rated “satisfactory” by the World Bank, the sudden collapse of Heritage Bank has disrupted financial operations and delayed the flow of funds to Yobe State, which now risks losing access to the trapped funds following the project’s official closure.
Nonetheless, the MCRP has achieved notable milestones.
Over 1.3 million people have improved their livelihoods, with women accounting for 49 per cent of beneficiaries—many of them involved in peacebuilding and community development efforts. The project has also enhanced healthcare and education through the rehabilitation of schools and health centres, reaching over 2.5 million people.
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In addition, the programme has strengthened local institutions by providing technical support and training for teachers, community leaders, and researchers, contributing to long-term recovery efforts in the Lake Chad Basin.
The World Bank says it will continue working with relevant authorities to resolve outstanding issues related to the frozen funds and ensure that development efforts in Yobe State are not permanently derailed.
