Suspend Loans To Nigerian States For Now, SERAP Advises World Bank.

 

The  Socio-Economic Rights and Accountability Project (SERAP),  has asked  World Bank to stop giving more  loans or  any other funding to the 36 states  of the federation until they explain how they used the last loans.

The rights group  asked the World Bank’s  president, Ajay Banga to demand express commitment from the country’s 36 state governors to address credible allegations of mismanagement or diversion of public funds in their states and provide guarantees that loan and funding from the Bank and its partners would not be used to fund the luxurious lifestyles of politicians.

Referencing its letter dated November 25, 2023, and signed by its deputy director, Kolawole Oluwadare, the group said, “The World Bank and its partners cannot continue to give loans and other funding to these states where as there are credible allegations of mismanagement or diversion of public funds.”

The statement  read  “We are concerned that there is a significant risk of mismanagement or diversion of funds linked to the Bank’s investments in most of the country’s 36 states.

 “It is neither appropriate nor responsible  to give loans to these states only for the loans to be misspent.

“The World Bank’s lending, and support for these states may create the impression of complicity in the allegations of mismanagement or diversion of public funds by the states which may include loans from the Bank and its partners, and federal allocations.

“We would consider the option of pursuing legal action should the World Bank fail to implement the recommendations contained in this letter, and we may join the country’s 36 states in any such suit.

“According to Nigeria’s Debt Management Office, the total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion. The Federal Government’s total public debt portfolio is N78.2 trillion.”