The Socio-Economic Rights and Accountability Project (SERAP) has given President Bola Tinubu a seven-day ultimatum to instruct the Attorney General of the Federation, Lateef Fagbemi, SAN, and relevant anti-corruption agencies to investigate the use of a $1.5 billion World Bank loan and $3.121 billion in Chinese loans.
The World Bank loan was allocated to Nigeria’s 36 states and Abuja for poverty alleviation and social protection, while the Chinese loans were used for various infrastructure projects, including railway modernization and airport terminal expansions.
In an open letter dated August 10, 2024, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization emphasized the need for transparency and accountability in the management of these loans to strengthen democratic institutions and the rule of law.
SERAP called for the prosecution of those found guilty of corruption and mismanagement, and for the recovery of any misappropriated funds.
The group specifically requested that the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) be tasked with tracking and monitoring the spending of the $1.5 billion World Bank loan.
SERAP expressed concern over reports that the funds may have been mismanaged or diverted, contributing to ongoing poverty and economic inequality in Nigeria.
SERAP’s letter highlighted the government’s constitutional obligation to combat corruption and urged President Tinubu to act within seven days. Failure to respond could result in legal action to compel the government to address the issue.
The organization stressed that ensuring accountability for the loans is crucial for addressing Nigeria’s widespread poverty and economic challenges.
Additionally, SERAP noted that while governors may have immunity from arrest and prosecution, they can still be investigated for criminal allegations, with findings potentially leading to impeachment proceedings.
The loans in question were intended for critical projects, including COVID-19 response, social protection, and infrastructure development. However, SERAP’s concerns about corruption and mismanagement have raised doubts about the effectiveness of these investments in achieving their intended goals.
The letter from SERAP partly reads, “Investigating and prosecuting allegations of corruption and mismanagement in the spending of World Bank loans and Chinese loans would be entirely consistent with the Nigerian Constitution, and the country’s international anti-corruption obligations.
‘’We note that while a governor may enjoy immunity from arrest and prosecution, he does not enjoy immunity from investigation. Any criminal allegation against a sitting governor can and should be investigated pending the time the governor leaves office and loses immunity.
“The findings of such investigation can also be the basis for initiating impeachment proceedings against the governor.
“Your government has the legal obligation to ensure accountability for the spending of the loans obtained from the World Bank and China. SERAP is concerned about the continuing lack of transparency and accountability in the management of World Bank loans and Chinese loans obtained by the states and the Federal Government.
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.
“SERAP is concerned about years of allegations of corruption and mismanagement in the spending of World Bank loans and Chinese loans obtained by Nigeria’s 36 states and the Federal Government as well as the entrenched impunity of perpetrators.
“These allegations have undermined the ability of governments at all levels to address the debilitating poverty and economic inequality across the states and the Federal Capital Territory.
“Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power’ in any part of the country. Section 15 defines ‘government’ to include the government of the federation, or of any state, or of a local government council or any person who exercises power or authority on its behalf.
“The Nigerian Constitution and human rights treaties to which Nigeria is a state party impose obligations on your government to probe and prosecute allegations of corruption in the spending of World Bank loans and Chinese loans, and to ensure access to justice and effective remedies for victims of corruption.
“According to our information, the World Bank on 15 December 2020 approved a $1.5 billion loan for Nigeria’s 36 states and Abuja for social protection and strengthened state-level COVID-19 response. The loan aims to help the states and Abuja build a resilient recovery post-COVID19 and to reduce poverty.
“Specifically, the loan aims to increase access to basic education, quality water and sanitation services; improve primary healthcare; and increase the coverage and effectiveness of social assistance programs, promote women’s empowerment and reduce maternal and child mortality across the states.
“The $1.5 billion World Bank loan is for two projects. The first is Nigeria Covid-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES) which aims to help increase access to social transfers and basic services, as well as provide grants to poor and vulnerable households. The project is financed through an International Development Association (IDA) credit of $750 million.
“The second is the State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS), which aims to help increase the efficiency in spending, strengthen revenue mobilization, and enhance accountability in public resource management to strengthen state-level COVID-19 response.
“The project is financed through an International Development Association (IDA) credit of $750 million.
“According to the Debt Management Office, the total borrowing by Nigeria from China was USD$3.121 billion, as at March 31, 2020. The USD$3.121 billion loans are for 11 projects including the Nigerian Railway Modernization Project (Idu-Kaduna section); and Abuja Light Rail Project.
“Others include the Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos and Port Harcourt), Nigerian Railway Modernization Project (Lagos-Ibadan section) and Rehabilitation and Upgrading of Abuja – Keffi- Makurdi Road Project.
“According to the Debt Management Office, Nigeria’s total public debt stock, including external and domestic debts, increased by ₦24.33 trillion in three months alone, from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46 billion) as of March 31, 2024.
“The debt represents external and domestic loans obtained by the Federal Government, the 36 state governments and the Federal Capital Territory (FCT).”
