The Socio-Economic Rights and Accountability Project (SERAP), a Nigerian non-governmental organization, has called on the World Bank to halt the disbursement of an $800 million loan requested by the Nigerian government. SERAP has also urged the bank to request an explanation from the incoming administration in Nigeria before releasing the funds.
In April, the Buhari administration announced plans to spend the $800 million loan as part of its subsidy palliative measures. However, SERAP has criticised the lack of clarity on how the loan will be used and the negative impact it may have on poor Nigerians.
SERAP Deputy Director, Kolawole Oluwadare, has written a letter to the World Bank warning against sacrificing international standards in a bid to disburse fresh loans to Nigeria. Oluwadare highlighted that the bank is responsible for upholding transparency, accountability, and human rights issues in its loan agreements.
“The World Bank cannot close its eyes to these important transparencies, accountability and human rights issues. We would consider the option of pursuing legal action should the World Bank refuse to suspend the disbursement of the loan to the Federal Government,” said Oluwadare.
SERAP has reminded the World Bank of its responsibility to ensure that Nigerian authorities are accountable and transparent in discussions to obtain loans, credits or grants. The organization has warned that if the loan is granted without proper explanations by the government, it could lead to the creation of unsustainable debts which would limit the ability of poor and vulnerable Nigerians to access their legally enforceable socio-economic rights.
President Muhammadu Buhari requested the approval of the Senate for the loan, three weeks before the end of his tenure. It is unclear what the project objectives and intended purposes of the loan are at this time.
SERAP’s letter calls on the World Bank to comply with its own Articles of Agreement in disbursing any loans and keep to the high standards that it is known for.
