Reject $1.08bn Foreign Loan, Probe Missing Funds, SERAP Tells Tinubu

The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to reject the recently approved $1.08 billion loan from the World Bank.

Instead, SERAP urged the President to direct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN) and relevant anti-corruption agencies to promptly investigate allegations that over N233 billion of public funds are missing, diverted, or unaccounted for by the Nigerian Bulk Electricity Trading Plc. in Abuja and other ministries, departments, and agencies (MDAs).

The organisation made the demands in an open letter dated April 5, 2025, signed by its Deputy Director, Kolawole Oluwadare. The organisation insisted that the foreign loan was not in the public interest.

SERAP also called for prosecuting anyone suspected of being responsible for the alleged stolen funds if there is sufficient admissible evidence, and any missing public funds should be fully recovered and returned to the treasury.

It further advised the government that the recovered N233 billion should be allocated to fund the deficit in the 2025 budget and help alleviate Nigeria’s crippling debt crisis.

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The organisation maintained that the World Bank loan is neither necessary nor in the public interest, especially given the country’s significant debt burden and the staggering amounts of missing public funds from MDAs that the government has failed to probe or recover.

SERAP expressed concern that the federal government, along with Nigeria’s 36 states and the Federal Capital Territory, continues to face a debt crisis with vicious debt cycles, debt distress, or a high risk of debt distress.

It also stated that the UN Independent Expert on foreign debt and human rights said Nigeria faces debt service costs relative to tax revenues exceeding 20 per cent, contributing to escalating social tensions linked to poverty and inequality.

The organisation claimed that the revelations regarding the missing N233 billion are documented in the 2021 audited report published on November 13, 2024, by the Office of the Auditor-General of the Federation.

SERAP stated, „The allegations suggest a grave violation of public trust, the 1999 Constitution (as amended), the country’s anti-corruption legislation, and international anti-corruption obligations. There is a legitimate public interest in ensuring justice and accountability for these serious allegations.

“We would appreciate it if you could take the recommended measures within seven days of receiving or publishing this letter. If we do not hear from you by then, SERAP will consider appropriate legal actions to compel your government to comply with our request in the public interest.

„The 2021 annual audited report by the Auditor-General of the Federation, the Nigerian Bulk Electricity Trading Plc. (NBET) Abuja „paid over N96 billion (N96,196,794,844.67) for services not performed and goods not supplied.

“NBET also reportedly spent over N111 billion [N111,601,369,196.22) in 2021 without accounting for the funds. It failed to recover outstanding revenues/debts of over N2 billion (N2,896,304,647,500.30).

„These allegations do not include previous claims SERAP made regarding NBET allegedly paying N100 billion to companies and contractors for projects that were never executed.

„The Nigerian Security Printing and Minting Company Plc (NSPM) in Abuja reportedly failed to remit over N10 billion (N10,393,793,419.34) in taxes collected. The Auditor-General is concerned that this non-remittance violates paragraph 235 of the Financial Regulations.

“NSPM also allegedly failed to account for over N14 billion (N14,136,472,333.16) in contract payments awarded, violating due process. NSPM ‘illegally took custody of government vehicles worth over N400 million (N413,343,623.00) and failed to account for those vehicles and funds.

“The National Pension Commission in Abuja reportedly failed to account for over N4 billion (N4,429,550,386.58) of internally generated revenue to the Consolidated Revenue Fund. The Federal Ministry of Works’ housing sector paid over N1 billion (N1,076,662,242.61) without supporting documents.

“The Federal Road Safety Corps (FRSC) also reportedly ‘printed 52,714 National Driver’s Licences (NDL) in 2020’, amounting to over N300 million [N316,284,000.00], but failed to account for the money. The Auditor-General fears the funds may be missing.

“The FRSC also failed to account for over N3 billion (N3,599,352,300.13) collected for drivers‘ licenses, money that was reportedly diverted into the accounts of commercial banks used by their partners. The Auditor-General suspects that this money may have been misappropriated,” SERAP stated.