President Bola Tinubu has been requested by the Socio-Economic Rights and Accountability Project to look into the $1.5 billion World Bank loan that the Federal Capital Territory and the 36 states of the federation received.
Additionally, the group asked Tinubu to look into the “alleged mismanagement of the $3.121 billion in Chinese loans obtained by the Federal Government.”
In order to lessen “poverty and social protection across the states,” SERAP requested that the President “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 used.
This was stated in an open letter signed by Kolawole Oluwadare, the group’s deputy director, on August 10, 2024.
Suspected perpetrators or agencies “should face prosecution as appropriate, if there is sufficient admissible evidence, and any proceeds of corruption should be fully recovered,” according to SERAP.
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 declared that there would be “impunity for corruption in the management of World Bank loans and Chinese loans” as long as “high-ranking public officials go largely unpunished for their alleged crimes.”
“The truth will come to light and justice will be best served by pursuing these allegations and bringing the evidence before the court,” SERAP added.
“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 delegation informed Tinubu that it is his legal duty to “ensure accountability for the spending of the loans obtained from China and the World Bank.” The ongoing lack of accountability and transparency in the administration of Chinese and World Bank loans that the federal government, states, and other entities have acquired worries SERAP.
The group threatened to “consider appropriate legal actions to compel your government to comply with our request in the public interest” unless the “recommended measures are taken within seven days of the receipt and/or publication of this letter.”
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.”
According to data from the Debt Management Office, as of March 31, 2020, Nigeria had borrowed USD$3.121 billion from China overall, according to SERAP. The Abuja Light Rail Project and the Nigerian Railway Modernisation Project (Idu-Kaduna segment) are two of the eleven projects for which the USD$3.121 billion in loans are intended.
In addition, the DMO claimed in SERAP’s letter that as of March 31, 2024, Nigeria’s total public debt stock—both external and domestic—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).” The debt is made up of loans that the federal government, the 36 state governments, and the Federal Capital Territory have obtained.
