The Socio-Economic Rights and Accountability Project (SERAP) has taken a decisive step by reaching out to the World Bank, urging a suspension of loans to Nigeria’s 36 states.
In a letter directed to Mr. Ajay Banga, the President of the World Bank, SERAP called for a thorough investigation into the utilization of loans and other financial facilities by the 36 state governors. The organization emphasized the necessity for a prompt, transparent, and effective inquiry into the expenditure of these loans.
Underscoring the need for accountability, SERAP stressed that the World Bank should pause the disbursement of any loans and funding in the presence of credible evidence indicating mismanagement or diversion of public funds by any of the states. The letter, signed by SERAP’s deputy director Kolawole Oluwadare and dated November 25, 2023, disclosed these critical assertions.
SERAP posited that the World Bank should refrain from considering further applications for loans and funding from the nation’s states until a satisfactory account of the expenditure of the loans and facilities obtained from the Bank and its partners is provided by the concerned states.
The organisation expressed concern that a considerable number of the 36 states are allegedly mishandling public funds, including loans sourced from the Bank and its partners, as well as allocations from the Federal Government.
Highlighting the distressing implications, SERAP underscored that there is a substantial risk of financial mismanagement or diversion associated with the World Bank’s investments in many of the Nigerian states.
“The World Bank and its partners need to unequivocally communicate to Nigeria’s state governors that any mismanagement or diversion of public funds will not be tolerated. This can be done by immediately suspending pending loans and other funding until thorough investigations are conducted,” the statement reiterated.
According to SERAP, several state governors are purportedly dissipating public funds, possibly including resources obtained from the Bank and its partners, along with allocations from the Federal Government, on unnecessary travels, procurement of extravagant and bulletproof vehicles, and generally sustaining opulent political lifestyles.
Reportedly, the 36 states in Nigeria have expended a total of N1.71 trillion on recurrent expenditures, encompassing allowances, foreign trips, office supplies, and aircraft maintenance in the initial nine months of 2023.
Expressing resolve, SERAP cautioned that failure to adhere to the recommendations outlined in the letter could potentially lead to legal actions being pursued. The organization stands ready to take this course of action should the World Bank neglect or decline to implement the suggested measures.
