‘Suspend Loans To Nigeria’s 36 States Over Misspending’ – SERAP Tells World Bank

Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend loans to Nigeria’s 36 states amid allegations of mismanagement of public funds.

Gatekeepers News reports that this was disclosed in a statement on Sunday by SERAP Deputy Director, Kolawole Oluwadare.

In the letter dated 25 November 2023, the group specifically wants the bank’s President, Ajay Banga, “to promptly, transparently and effectively conduct an investigation into the spending of loans and other facilities by the country’s 36 state governors and to suspend any loans and funding if there is relevant admissible evidence of mismanagement or diversion of public funds by any of the states.”

It also asked the global bank to “suspend further applications for loans and any other funding to the 36 states until these states can satisfactorily explain details of spending of loans and other facilities obtained from the Bank and its partners.”

“The World Bank and its partners cannot continue to give loans and other funding to these states where there are credible allegations of mismanagement or diversion of public funds,” the statement read.

“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.”

Citing data from Nigeria’s Debt Management Office (DMO), the group said the total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion. It also said the Federal Government’s total public debt portfolio is N78.2 trillion.

SERAP also urged the World Bank’s chief to demand expressed commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their states.