The Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank to cease providing loans to Nigeria’s 36 states, citing concerns about the alleged mismanagement of public fund.
According to data from the National Bureau of Statistics, each Nigerian carries a debt burden of N396,376.19, and Nigeria’s overall public debt has risen by 75.27%, reaching N87.38 trillion in the second quarter of 2023.
In a letter, SERAP called on the World Bank to conduct an investigation into the spending practices of state governors and advocated for the suspension of loans if evidence of mismanagement is uncovered. The organization also requested a freeze on further loan applications until states transparently account for the utilization of previous funds.
Kolawole Oluwadare, SERAP’s Deputy Director, emphasized these points on Sunday. The group further urged the World 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 statement emphasized that the World Bank and its partners should not continue providing loans and funding to states facing credible allegations of mismanagement or diversion of public funds. SERAP expressed concern about the significant risk of mismanagement or fund diversion linked to the Bank’s investments in many of Nigeria’s states, deeming it inappropriate and irresponsible to provide loans that might be misspent.
Citing data from Nigeria’s Debt Management Office, SERAP pointed out that the combined public debt of the country’s 36 states and the Federal Capital Territory is N9.17 trillion. Additionally, the group noted that the Federal Government’s total public debt stands at N78.2 trillion. SERAP called on the World Bank’s chief to secure a clear commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds within their respective states.
