The Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend issuance of loans to Nigeria’s 36 states over allegations of mismanaging public funds.
In the letter dated 25 November 2023, SERAP specifically told the World bank’s President, Ajay Banga, “to promptly, transparently and effectively conduct an investigation into the spending of loans and other facilities by the country’s 36 state governors and to suspend any loans and funding if there is relevant admissible evidence of mismanagement or diversion of public funds by any of the states.”
It also asked the global bank to “suspend further applications for loans and any other funding to the 36 states until these states can satisfactorily explain details of spending of loans and other facilities obtained from the Bank and its partners.”
A statement on Sunday, November 26 by SERAP deputy director Kolawole Oluwadare reads;
“The World Bank and its partners cannot continue to give loans and other funding to these states where there are credible allegations of mismanagement or diversion of public funds,”“We are concerned that there is a significant risk of mismanagement or diversion of funds linked to the Bank’s investments in many of the country’s 36 states. It is neither appropriate nor responsible lending to give loans to these states only for the loans to be misspent.”
Citing data from Nigeria’s Debt Management Office (DMO), SERAP said the total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion. It also said the Federal Government’s total public debt portfolio is N78.2 trillion.
SERAP then urged the World Bank’s chief to demand expressed commitment from Nigeria’s 36 governors before any further aid or loan is sent.
