The Socio-Economic Rights and Accountability Project (SERAP) has called upon the World Bank to suspend the issuance of loans to Nigeria’s 36 states, citing allegations of mismanagement of public funds, including those acquired from the international institution.
In a letter dated November 25, 2023, addressed to the President of the World Bank, Ajay Banga, SERAP specifically requested an investigation into the spending of loans and other facilities by the country’s state governors.
The letter emphasised the need for a prompt, transparent, and effective inquiry into the utilisation of loans and funding by the state governors.
SERAP urged the World Bank to suspend any loans and funding if credible and admissible evidence of mismanagement or diversion of public funds is found.
Additionally, the group called for the suspension of further loan applications and funding requests from the 36 states until satisfactory explanations are provided regarding the spending of loans and facilities obtained from the Bank and its partners.
According to SERAP’s deputy director, Kolawole Oluwadare, the World Bank and its partners should not continue providing loans and funding to states facing credible allegations of mismanagement or diversion of public funds. The statement expressed concern about the significant risk of mismanagement or fund diversion linked to the Bank’s investments in many of Nigeria’s states.
Citing data from Nigeria’s Debt Management Office (DMO), SERAP highlighted that the total public debt portfolio for the 36 states and the Federal Capital Territory amounts to N9.17 trillion, with the Federal Government’s total public debt portfolio reaching N78.2 trillion.
SERAP urged the World Bank’s president to demand a clear commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their respective states.
The organisation emphasised that lending to states facing such allegations is neither appropriate nor responsible, and transparency in the utilization of funds is crucial to ensure effective development and poverty alleviation efforts.
