The Socio-Economic Rights and Accountability Project, SERAP,
has written to the World Bank, asking it to suspend loans to the country’s 36
states.
In a letter addressed to Mr Ajay Banga, the World Bank
President, SERAP urged him “to promptly, transparently and effectively conduct
investigation into spending of loans and other facilities by the 36 state
governors”.
SERAP said the World Bank should 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 the letter dated November 25, 2023 and
signed by SERAP deputy director Kolawole Oluwadare.
SERAP said the Bank should “suspend further applications for
loans and any other funding to the nation’s states until they are able to
satisfactorily explain details of spending of loans and other facilities
obtained from the Bank and its partners”.
The organisation is alleging that many of the 36 states were
mismanaging public funds, including loans obtained from the Bank and its
partners, and allocations from the Federal Government.
The statement said the organization was worried there is a
significant risk of mismanagement or diversion of funds linked to the Bank’s
investments in many of the country’s 36 states.
“The World Bank and its partners need to make clear to
Nigeria’s state governors that it would not tolerate any mismanagement or
diversion of public funds by immediately suspending any pending loans and other
funding to them until the allegations of mismanagement or diversion of public funds
are investigated.
“Several state governors are also reportedly spending public
funds which may include funding obtained from the Bank and its partners and
allocations from the Federal Government to fund unnecessary travels, buy exotic
and bulletproof cars and generally fund the lavish lifestyles of politicians.
“The country’s 36 states have reportedly spent N1.71tn on
recurrent expenditures, including allowances, foreign trips, office stationery,
and aircraft maintenance in the first nine months of 2023,” parts of the
statement read.
SERAP threatened it would consider the option of seeking
legal action should the World Bank fail or fail to implement the
recommendations contained in its letter.
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