‘Suspend Loans To Nigeria’s 36 States Over Mismanagement’ SERAP To World Bank

The Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend all loans to Nigeria’s 36 states over allegations of mismanagement and corruption. In a letter addressed to the President of the World Bank, SERAP cited numerous reports of financial misappropriation and embezzlement by state governors and officials.

The total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion, according to the DMO.

This figure includes domestic and external debts, as well as the debts of the federal government. The debt profile has been a source of concern for many Nigerians, as it has been growing steadily over the years. The government has been taking steps to address the issue, such as implementing fiscal policies aimed at reducing the budget deficit and increasing revenue generation. However, there is still much work to be done to ensure that the country’s debt levels are sustainable and that future generations are not burdened by excessive debt. It is important for the government to continue to prioritize responsible borrowing and debt management, while also investing in critical infrastructure and social programs that can help to drive sustainable economic growth.

In the letter dated 25 November 2023, the group specifically wants the bank’s President, Ajay Banga, “to promptly, transparently and effectively conduct an investigation into the spending of loans and other facilities by the country’s 36 state governors and to suspend any loans and funding if there is relevant admissible evidence of mismanagement or diversion of public funds by any of the states.”

This was disclosed in a statement on Sunday by SERAP deputy director Kolawole Oluwadare.

The letter highlighted how such actions have deprived citizens of basic amenities and services, including healthcare, education, and infrastructure. SERAP urged the World Bank to take decisive action by suspending all loans to the states until they can demonstrate transparency and accountability in their financial dealings.

The organization also called on the World Bank to work with the Nigerian government in implementing reforms that will ensure proper financial management and prevent future occurrences of mismanagement. SERAP emphasized that the funds meant for development must be utilized for the benefit of the people, and not for the enrichment of a few privileged individuals.

The World Bank is yet to respond to SERAP’s request, but the organization has expressed its commitment to continue advocating for transparency and accountability in the Nigerian government’s financial dealings.