Why Tinubu Should Probe $1.5bn W’Bank Loan to States, FCT – SERAP
The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to initiate an investigation into the utilization of a $1.5 billion World Bank loan obtained by Nigeria’s 36 states and the Federal Capital Territory. Additionally, SERAP urged the President to probe the management of $3.121 billion in Chinese loans secured by the Federal Government.
In an open letter dated August 10, 2024, and signed by the group’s Deputy Director, Kolawole Oluwadare, SERAP requested that President Tinubu instruct the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, alongside relevant anti-corruption agencies, to promptly investigate how the funds were expended. The goal, according to SERAP, is to ensure that the loans genuinely contributed to reducing poverty and enhancing social protection across the states.
SERAP emphasized that individuals or agencies implicated in corruption or mismanagement should be prosecuted, provided there is sufficient evidence, and that any proceeds of corruption should be recovered.
The letter also recommended that the President direct the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to collaborate in tracking and monitoring the expenditure of the World Bank loan. SERAP argued that ensuring accountability in the management of these loans would help build public trust in democratic institutions and strengthen the rule of law.
The organization warned that as long as high-ranking officials remain unpunished for alleged crimes, impunity will persist in the management of international loans. SERAP asserted that investigations into these allegations are crucial for uncovering the truth and delivering justice.
The letter also highlighted that while sitting governors may enjoy immunity from arrest and prosecution, they can still be investigated. Such investigations, according to SERAP, could provide grounds for initiating impeachment proceedings against governors if warranted.
SERAP urged President Tinubu to fulfill his administration’s legal responsibility to ensure transparency and accountability in the management of loans obtained from the World Bank and China. The group expressed concerns over the ongoing lack of transparency and accountability in the handling of these loans by both state and federal governments.
SERAP requested that the President take action within seven days of receiving or publishing the letter. The group warned that it would consider legal action to compel the government to comply with its demands in the public interest if no action is taken.
The letter pointed out that the World Bank had approved the $1.5 billion loan on December 15, 2020, to support Nigeria’s 36 states and Abuja in building a resilient post-COVID-19 recovery and reducing poverty. The loan was intended to increase access to basic education, improve primary healthcare, and expand social assistance programs, among other objectives.
Additionally, SERAP cited data from the Debt Management Office (DMO) revealing that Nigeria had borrowed $3.121 billion from China as of March 31, 2020, for 11 projects, including the Nigerian Railway Modernization Project (Idu-Kaduna section) and the Abuja Light Rail Project.
The letter further noted that Nigeria’s total public debt stock, including external and domestic debts, had increased by N24.33 trillion in just three months—from N97.34 trillion ($108.23 billion) in December 2023 to N121.67 trillion ($91.46 billion) as of March 31, 2024. This debt includes loans obtained by the Federal Government, the 36 states, and the Federal Capital Territory.
