SERAP Calls on World Bank to Investigate and Suspend Loans to Nigerian States
The total public debt for Nigeria’s 36 states and the Federal Capital Territory stands at N9.17 trillion, as reported by the Debt Management Office (DMO).
In response to concerns over alleged mismanagement of public funds, the Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank to suspend loans to Nigeria’s states.
In a letter dated 25 November 2023, SERAP directed its appeal to Ajay Banga, the President of the World Bank.
The group specifically called for a transparent and effective investigation into the spending of loans and other facilities by the country’s 36 state governors.
SERAP emphasised the need for the suspension of loans and funding in the presence of admissible evidence of mismanagement or diversion of public funds by any state.
The statement released by SERAP’s deputy director, Kolawole Oluwadare, on Sunday, highlighted the importance of the World Bank taking a firm stance against credible allegations of mismanagement.
Oluwadare expressed concern about the significant risk associated with the Bank’s investments in several of Nigeria’s states and emphasized the responsibility of responsible lending.
Citing data from the DMO, SERAP pointed out that the total public debt portfolio for the 36 states and the Federal Capital Territory amounts to N9.17 trillion.
The group further noted that the Federal Government’s total public debt portfolio stands at N78.2 trillion.
In its appeal to the World Bank, SERAP urged the institution to suspend further loan applications and funding requests from the 36 states until satisfactory explanations regarding the spending of previous loans and facilities are provided.
The group also called on the World Bank’s chief to demand a committed effort from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their respective states.
As the allegations raise concerns about the prudent use of funds, this development underscores the importance of transparency and accountability in managing financial resources for sustainable development.
Source: Channel TV
