The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to investigate the $1.5 billion World Bank loan obtained by Nigeria’s 36 states and the Federal Capital Territory, as well as the alleged mismanagement of $3.121 billion in Chinese loans by the Federal Government.
In an open letter dated August 10, 2024, and signed by Deputy Director Kolawole Oluwadare, SERAP urged President Tinubu to direct the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, along with relevant anti-corruption agencies, to conduct a thorough investigation into the use of these loans. The goal is to ensure that the funds are being used to reduce poverty and improve social protection across the states.
SERAP emphasized that any individuals or agencies found guilty of corruption or mismanagement should face prosecution if sufficient evidence is found, and any proceeds of corruption should be fully recovered. The group also advised the President to instruct the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to jointly monitor the spending of the World Bank loan to ensure accountability.
SERAP highlighted the need for transparency and accountability in the management of the loans, warning that continued impunity for high-ranking public officials would undermine trust in democratic institutions and the rule of law. The organization stressed that even though governors may have immunity from arrest and prosecution while in office, they can still be investigated, and such investigations could serve as the basis for impeachment proceedings.
The group noted that President Tinubu’s administration has a legal responsibility to ensure accountability for the spending of loans obtained from the World Bank and China. SERAP expressed concern over the lack of transparency and accountability in the management of these loans, warning that if the recommended actions are not taken within seven days, it would consider taking legal action to compel the government to comply.
According to SERAP, the World Bank approved a $1.5 billion loan on December 15, 2020, to help Nigeria’s states and the Federal Capital Territory build a resilient post-COVID-19 recovery and reduce poverty. The loan aims to improve access to basic education, water, sanitation services, primary healthcare, social assistance programs, women’s empowerment, and reduce maternal and child mortality across the states.
Additionally, SERAP referenced data from the Debt Management Office (DMO), revealing that Nigeria’s total borrowing from China amounted to $3.121 billion as of March 31, 2020, with the funds allocated for 11 projects, including the Nigerian Railway Modernization Project (Idu-Kaduna section) and the Abuja Light Rail Project. The letter also noted that Nigeria’s total public debt stock, including external and domestic debts, increased significantly from N97.34 trillion ($108.23 billion) in December 2023 to N121.67 trillion ($91.46 billion) as of March 31, 2024.
