‘Probe $1.5bn World bank loan to states, $3bn Chinese Loan’, SERAP urges Tinubu
The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), along with relevant anti-corruption agencies, to urgently investigate the spending of a $1.5 billion World Bank loan obtained by Nigeria’s 36 states and the Federal Capital Territory (FCT) for poverty reduction and social protection initiatives.
In an open letter dated 10 August 2024, signed by SERAP Deputy Director Kolawole Oluwadare, the organization urged the President to ensure that those found guilty of corruption and mismanagement are prosecuted. The letter emphasized that any proceeds of corruption should be fully recovered.
SERAP also called for a probe into the alleged mismanagement of $3.121 billion in Chinese loans obtained by the Federal Government. The organization stressed that transparency and accountability in the use of these loans are essential for building trust in democratic institutions and strengthening the rule of law.
The letter noted that impunity for corruption in managing the World Bank and Chinese loans would continue as long as high-ranking officials remain unpunished for their alleged crimes. SERAP highlighted reports suggesting that these loans may have been mismanaged or diverted, leaving them unaccounted for.
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SERAP emphasized that while governors may enjoy immunity from arrest and prosecution, they do not have immunity from investigation. Any criminal allegations against sitting governors should be investigated, with findings potentially leading to impeachment proceedings.
The organization expressed concern about the lack of transparency in the management of these loans, which were intended to reduce poverty and enhance social protection programs across the country. SERAP warned that failure to address these concerns would only exacerbate the already widespread poverty and inequality in Nigeria.
SERAP urged President Tinubu to take action within seven days of receiving or publishing the letter. If no action is taken, the organisation stated that it would consider legal measures to compel the government to comply with its requests in the public interest.
The $1.5 billion World Bank loan, approved on 15 December 2020, was intended to support Nigeria’s COVID-19 recovery efforts, enhance social protection programs, and strengthen state-level responses. The loan was split into two projects: the Nigeria Covid-19 Action Recovery and Economic Stimulus (Nigeria CARES) program and the State Fiscal Transparency, Accountability, and Sustainability Program for Results (SFTAS).
The Chinese loans, totaling $3.121 billion, were allocated for 11 projects, including the Nigerian Railway Modernisation Project, Abuja Light Rail Project, and the rehabilitation of Abuja-Keffi-Makurdi Road. As of March 2024, Nigeria’s total public debt had surged to ₦121.67 trillion ($91.46 billion), representing a significant increase from ₦97.34 trillion ($108.23 billion) in December 2023.
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