World Bank Loans and Chinese Debt: Nigerian Government Urged to Ensure Accountability
Nigeria’s Socio-Economic Rights and Accountability Project (SERAP) has called on the federal government to investigate the spending of two significant loans – a $1.5 billion World Bank loan and $3.121 billion Chinese debt. The loans, obtained for poverty reduction and social protection, have allegedly been mismanaged or diverted, leaving citizens deprived of basic needs.
In an open letter to President Bola Tinubu, SERAP deputy director Kolawole Oluwadare urged the Attorney General, anti-corruption agencies, and governors to probe allegations of corruption in the management of these loans. The organization cited Section 15(5) of the Nigerian Constitution, which imposes a responsibility to "abolish all corrupt practices and abuse of power" in the country.
The loan from the World Bank was approved in 2020 to support the social protection of Nigeria’s 36 states and the federal capital territory. The loan aims to strengthen state-level COVID-19 response and address poverty. However, reports suggest that funds may have been misused or diverted.
The Chinese debt, totaling $3.121 billion, is part of 11 projects aimed at supporting Nigeria’s economic development, including railway modernization and light rail projects. However, SERAP fears that the debt has increased Nigeria’s public debt stock, with a sharp rise of ₦24.33 trillion in just three months.
SERAP’s concerns are twofold: first, the lack of transparency and accountability in the management of these loans undermines the ability of governments to address poverty and inequality. Second, the continued impunity for corruption in loan management persists, allowing perpetrators to go unpunished.
In urging the federal government to take immediate action, SERAP emphasized the need for accountability in the spending of these loans to build trust in democratic institutions and strengthen the rule of law.
"Nigeria’s constitution and human rights treaties impose obligations on your government to investigate, prosecute, and ensure accountability for alleged corruption and mismanagement in the spending of these loans. It is by pursuing these allegations that the truth will be revealed, and justice can be served," SERAP warned.
The organization is requesting that President Tinubu directs the Attorney General and anti-corruption agencies to investigate allegations of corruption and mismanagement within a week. Failure to take action will prompt SERAP to consider "appropriate legal actions to compel your government to comply with our request in the public interest."
