The Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend the issuance of loans to Nigeria’s 36 states, citing allegations of mismanaging public funds, including loans obtained from the institution. In a letter dated November 25, 2023, SERAP urged the bank’s President, Ajay Banga, to conduct a transparent investigation into the spending of loans by state governors.
According to the statement by SERAP deputy director Kolawole Oluwadare, the group has requested the World Bank 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.”
The organization also urged 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.”
Expressing concern over potential mismanagement or diversion of funds, the statement emphasized, “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.”
Citing data from Nigeria’s Debt Management Office (DMO), SERAP highlighted that the total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion, with the Federal Government’s total public debt portfolio at N78.2 trillion.
SERAP also called on the World Bank’s chief to demand a commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their states.