Suspend Further Loans To Nigeria’s 36 States, FCT, SERAP Tells World Bank

Foremost civil society organisation (CSO), Socio-Economic Rights and Accountability Project (SERAP), has called on the World Bank President, Ajay Banga, to suspend applications for loans to Nigeria’s 36 States over allegations of mismanaging public funds pending satisfactory explanation of spending by beneficiaries.

In a letter dated November 25, 2023 and signed by SERAP deputy director, Kolawole Oluwadare, the CSO specifically wanted the bank “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 loan 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.”

This was disclosed in a statement on Sunday by SERAP deputy director Kolawole Oluwadare.

“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,” it said.

Citing data from Nigeria’s Debt Management Office (DMO), the group said the total public debt portfolio for the country’s 36 states and the Federal Capital Territory (FCT) was N9.17 trillion. It also said the Federal Government’s total public debt portfolio stood at N78.2 trillion.

SERAP, therefore, urged the World Bank’s chief to demand express commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their states.