Umaru Yar'Adua said his government had other funding priorities

The Nigerian government decided that the $30 million required was not seen as a priority.

Nigeria President Umaru Yar'Adua told his cabinet last week that he is not convinced that hosting the tournament in November of next year will help develop the country's sports.

"It is clear that hosting the competition, as prestigious as it may appear, is not a priority of government and the president has made it clear he would not fund any project that is not a priority," a government official said.

Yar'Adua said Nigeria faced more pressing budgetary needs and told the Local Organising Committee (LOC) for the tournament to turn to the private sector for most of its funding.

Nigerian officials, including Sports Minister Hassan Gimba, are already in Zurich to discuss the hosting of the biennial tournament with Fifa.

Fifa had praised Nigeria's preparations for the tournament in June after its last inspection visit.

However, the issue of funding had not been in doubt at the time.

LOC official Tijani Ahmed Shuaibu said his organisation would discuss the budget with Fifa.

"Most international competitions run on money from private companies with the government only providing the infrastructure like stadiums. Nigeria's case should not be different," said Shuaibu.