The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to initiate an investigation into the alleged mismanagement of loans totaling billions of dollars that were obtained from the World Bank and China.
The organisation, in an open letter dated August 10, 2024, urged the President to direct the Attorney General of the Federation, Lateef Fagbemi, and relevant anti-corruption agencies to thoroughly probe the spending of a $1.5 billion World Bank loan allocated to the 36 states and Abuja, as well as the $3.121 billion Chinese loans secured by the Federal Government.
SERAP’s Deputy Director, Kolawole Oluwadare, who signed the letter, expressed concerns about the lack of accountability surrounding these loans.
The organisation emphasised the importance of investigating these funds to build public trust in Nigeria’s democratic institutions and strengthen the rule of law.
SERAP noted that the loans were intended for poverty reduction, social protection, and infrastructure development but may have been mismanaged or diverted.
“There are troubling reports suggesting that the $1.5 billion World Bank loan and the $3 billion Chinese loans may have been mismanaged or are unaccounted for,” SERAP stated.
The organisation stressed that if sufficient evidence of corruption or mismanagement is found, those responsible should face prosecution, and any stolen funds should be recovered.
SERAP also highlighted the importance of ensuring that high-ranking officials involved in these financial transactions are held accountable.
“Impunity for corruption in the management of these loans will persist as long as those in power are not punished for their alleged crimes,” the letter read.
The organisation urged President Tinubu’s administration to take swift action, warning that failure to do so could lead to legal action from SERAP.
The $1.5 billion World Bank loan, approved on December 15, 2020, was specifically aimed at helping Nigeria’s 36 states and Abuja recover from the economic impact of the COVID-19 pandemic.
The loan was divided into two main projects. The first project, known as the Nigeria COVID-19 Action Recovery and Economic Stimulus Program (Nigeria CARES), was designed to increase access to social services, provide grants to vulnerable households, and enhance basic education, healthcare, and sanitation services.
The second project, the State Fiscal Transparency, Accountability, and Sustainability Program for Results (SFTAS), focused on improving public resource management and increasing efficiency in spending at the state level.
Despite these noble objectives, SERAP’s letter suggests that there are allegations of corruption and mismanagement in the implementation of these projects.
The organisation emphasised that these loans were meant to alleviate poverty, empower women, reduce maternal and child mortality, and strengthen Nigeria’s healthcare system.
Any diversion or mismanagement of these funds, SERAP argued, would have devastating consequences for the millions of Nigerians who are already struggling with economic hardship.
SERAP also raised concerns about the $3.121 billion in loans obtained from China. According to the Debt Management Office, these loans were intended for various infrastructure projects, including the Nigerian Railway Modernisation Project, the Abuja Light Rail Project, and the expansion of four major airport terminals in Abuja, Kano, Lagos, and Port Harcourt.
Other projects included the rehabilitation and upgrading of the Abuja-Keffi-Makurdi Road.
However, SERAP’s letter pointed out that these projects have been marred by delays, cost overruns, and allegations of mismanagement.
The organisation argued that without proper oversight, these loans could end up burdening future generations of Nigerians with unsustainable debt.
In addition to investigating these loans, SERAP called on the government to ensure transparency in the management of public funds. The organisation urged the Tinubu administration to take concrete steps to abolish corrupt practices and abuse of power, as mandated by Section 15(5) of the Nigerian Constitution. SERAP also reminded the President that while state governors may enjoy immunity from arrest and prosecution, they can still be investigated for any criminal allegations. Such investigations, SERAP suggested, could serve as the basis for initiating impeachment proceedings against any governor found to have engaged in corrupt practices.
SERAP further warned that the entrenched culture of impunity in Nigeria’s public sector has contributed to the country’s worsening economic inequality and poverty. The organisation argued that by failing to hold those responsible for corruption accountable, the government is undermining its ability to address the pressing needs of its citizens.
As Nigeria’s debt continues to rise, with the total public debt stock reaching ₦121.67 trillion as of March 31, 2024, SERAP emphasised the urgency of addressing these issues.
The organisation argued that the Nigerian government has a legal and moral obligation to ensure that loans obtained from international lenders are used for their intended purposes.
SERAP concluded its letter by urging President Tinubu to take immediate action to investigate the management of the World Bank and Chinese loans.
The organisation set a deadline of seven days for the government to respond to its request, warning that failure to act would result in SERAP pursuing legal action to compel the government to comply.
This call for transparency and accountability comes at a critical time for Nigeria, as the country grapples with economic challenges and mounting public debt.
The outcome of SERAP’s request could have significant implications for the future of Nigeria’s financial management and governance.
