SERAP Asks Tinubu To Probe $1.5bn World Bank Loan To States, FCT

The Socio-Economic Rights and Accountability Project has asked Nigeria's number one man, President Bola Tinubu to investigate the $1.5bn World Bank loan obtained by the 36 states of the federation, and the Federal Capital Territory.

The group also urged Tinubu to probe the “alleged mismanagement of the Chinese loans of $3.121bn obtained by the Federal Government.”

SERAP asked the President to “direct the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, and appropriate anti-corruption agencies to promptly and thoroughly investigate” how the loan was spent, thereby reducing “poverty and social protection across the states.”

This was contained in an open letter dated August 10, 2024, signed by the group’s Deputy Director, Kolawole Oluwadare.

SERAP noted that individuals or agencies suspected of “corruption and mismanagement should face prosecution as appropriate, if there is sufficient admissible evidence, and any proceeds of corruption should be fully recovered.”

In its letter, SERAP advised Tinubu to “instruct the Economic and Financial Crimes Commission and Independent Corrupt Practices and Other Related Offences Commission to jointly track and monitor the spending of the $1.5bn World Bank loan to Nigeria’s 36 states and Abuja.

“Ensuring accountability for the spending of World Bank loan and Chinese loans would build trust in democratic institutions with the ultimate aim of strengthening the rule of law.”

The group stated that so long as “high-ranking public officials go largely unpunished for their alleged crimes,” there would be a continued “impunity for corruption in the management of World Bank loans and Chinese loans.”

SERAP also said, “It is by pursuing these allegations and taking the evidence before the court that the truth will be revealed and justice best served.

“We note that while a governor may enjoy immunity from arrest and prosecution, he does not enjoy immunity from investigation. Any criminal allegation against a sitting governor can and should be investigated pending the time the governor leaves office and loses immunity,” adding that the “findings of such investigation can also be the basis for initiating impeachment proceedings against the governor.”

The group told Tinubu that his administration has a legal responsibility to “ensure accountability for the spending of the loans obtained from the World Bank and China. SERAP is concerned about the continuing lack of transparency and accountability in the management of World Bank loans and Chinese loans obtained by the states and the Federal Government.”

The group requested that the “recommended measures are taken within seven days of the receipt and/or publication of this letter,” or else it “shall consider appropriate legal actions to compel your government to comply with our request in the public interest.”

The letter partly read, “Prevention of corruption in the spending of World Bank loans and other loans are serious and legitimate public interests. There is a legitimate public interest in ensuring justice and accountability for alleged corruption and mismanagement in the management of these loans.

“According to our information, the World Bank on December 15, 2020, approved a $1.5bn loan for Nigeria’s 36 states and Abuja for social protection and strengthened state-level COVID-19 response. The loan aims to help the states and Abuja build a resilient recovery post-COVID-19 and to reduce poverty.

“Specifically, the loan aims to increase access to basic education, quality water and sanitation services; improve primary healthcare; and increase the coverage and effectiveness of social assistance programs, promote women’s empowerment and reduce maternal and child mortality across the states.”

SERAP noted that the Debt Management Office data revealed that “the total borrowing by Nigeria from China was USD$3.121 billion, as of March 31, 2020. The USD$3.121 billion loans are for 11 projects including the Nigerian Railway Modernization Project (Idu-Kaduna section); and Abuja Light Rail Project,” among others.

SERAP’s letter also stated that, according to the DMO, “Nigeria’s total public debt stock, including external and domestic debts, increased by N24.33 trillion in three months alone, from N97.34 trillion ($108.23 billion) in December 2023 to N121.67 trillion ($91.46 billion) as of March 31, 2024,” adding that the “debt represents external and domestic loans obtained by the Federal Government, the 36 state governments and the Federal Capital Territory,”