The Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend loans to Nigeria’s 36 states until proper accountability is provided for previous funds. This request stems from persistent allegations of mismanagement of state governors’ public funds, potentially including World Bank loans.
In a letter addressed to the President of the World Bank, Mr. Ajay Banga, and signed by SERAP deputy director Kolawole Oluwadare, the organization urged the World Bank to conduct a thorough, transparent, and effective investigation into the spending of loans and other facilities by Nigeria’s state governors. SERAP emphasized the need to suspend any ongoing loans if credible evidence of mismanagement or diversion of public funds is found.
Expressing concern over the potential misuse of funds, SERAP stated, “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.”
The organization highlighted the total debt profile of Nigeria’s 36 states and the Federal Capital Territory, amounting to N9.17 trillion, according to the Debt Management Office.
SERAP recommended several measures for the World Bank to address the alleged mismanagement of public funds, including demanding that state governors who obtained loans account for how the funds were spent. Additionally, SERAP suggested deploying independent monitors to the 36 states to oversee the spending of loans and other facilities obtained from the Bank.
The organization emphasized the World Bank’s legal obligations to observe and promote compliance with the Nigerian Constitution and domestic laws. SERAP warned of potential legal action if the World Bank fails to implement the recommendations outlined in the letter.
Among the recommendations, SERAP urged the World Bank to seek a commitment from Nigeria’s governors to address allegations of mismanagement, ensuring that funds are not used for luxurious lifestyles. The organization also emphasized the need for the World Bank to make clear to state governors that it will not tolerate any mismanagement or diversion of public funds by suspending pending loans until allegations are thoroughly investigated.
