SERAP urges Tinubu to investigate  $1.5 billion World Bank loan to states and the $3 billion Chinese loan.

SERAP has called on President Bola Tinubu to instruct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), along with relevant anti-corruption agencies, to conduct a swift and comprehensive investigation into the utilisation of a $1.5 billion World Bank loan acquired by the 36 states and Abuja. The loan was intended for poverty alleviation and social protection initiatives throughout the states.

SERAP emphasised the importance of holding accountable those involved in corruption and mismanagement. They stressed the need for prosecution and the recovery of any proceeds obtained through corrupt practices, provided there is enough admissible evidence.

SERAP has also called on him to instruct Fagbemi and relevant anti-corruption agencies to swiftly investigate the reported mishandling of the $3.121bn Chinese loans acquired by the Federal Government.

In an open letter dated August 10, 2024, signed by Kolawole Oluwadare, the deputy director of SERAP, the organisation emphasised the importance of accountability in the utilisation of loans from the World Bank and China. They highlighted that this accountability would foster trust in democratic institutions and ultimately contribute to the reinforcement of the rule of law.

As long as high-ranking public officials continue to evade punishment for their alleged crimes, impunity for corruption in the management of World Bank loans and Chinese loans will persist.

The court will uncover the truth and ensure justice is served by thoroughly investigating these allegations and presenting the evidence.

Reports suggest that there may have been mismanagement or diversion of the $1.5 billion World Bank loan to the 36 states and Abuja, along with the unaccounted $3 billion Chinese loans.

Examining and bringing charges against claims of corruption and mismanagement in the utilisation of World Bank loans and Chinese loans would align perfectly with the Nigerian Constitution and the nation’s global anti-corruption commitments.

We acknowledge that although a governor may be protected from arrest and prosecution, they are not exempt from being investigated. It is important to thoroughly investigate any criminal allegations made against a sitting governor, ensuring that justice is served and accountability is upheld.

The results of such an investigation could potentially lead to the start of impeachment proceedings against the governor.

Your government is responsible for ensuring accountability for the spending of the loans obtained from the World Bank and China. SERAP expresses deep concern regarding the ongoing lack of transparency and accountability in the management of loans obtained by the states and the Federal Government, including those from the World Bank and China.

Please implement the recommended measures within 7 days of receiving and/or publishing this letter. If we do not receive a response from you by then, SERAP will take necessary legal measures to ensure that your government adheres to our request in the best interest of the public.

“SERAP expresses deep concern over the long-standing allegations of corruption and mismanagement surrounding the utilisation of World Bank loans and Chinese loans acquired by Nigeria’s 36 states and the Federal Government. Additionally, it highlights the alarming issue of perpetrators enjoying impunity.”

These allegations have seriously hindered the ability of governments at all levels to effectively tackle the pressing issues of poverty and economic inequality across the states and the Federal Capital Territory.

Section 15(5) places the responsibility on your government to eliminate any corrupt practices and abuse of power throughout the country. Section 15 provides a comprehensive definition of ‘government’, encompassing the government of the federation, state, local government council, or any individual exercising power or authority on its behalf.

The Nigerian Constitution and human rights treaties to which Nigeria is a party place obligations on the government to thoroughly investigate and prosecute allegations of corruption in the utilisation of World Bank loans and Chinese loans. Additionally, it is crucial to ensure that victims of corruption have access to justice and effective remedies.

Claims of corruption and mismanagement in the use of these loans, along with other loans, have left the already impoverished citizens unable to meet their basic survival needs.

Ensuring the integrity of the spending of World Bank loans and other loans is a matter of great importance to the public. It is important to address concerns regarding corruption and mismanagement in the management of these loans to ensure justice and accountability.

As per our sources, the World Bank has given its approval for a substantial $1.5 billion loan to support Nigeria’s 36 states and Abuja. This loan aims to bolster social protection measures and enhance the state-level response to the ongoing COVID-19 crisis. The loan is intended to support the states and Abuja in developing a strong recovery plan after the impact of COVID-19, with a focus on reducing poverty.

Our goal is to enhance access to basic education, quality water, and sanitation services. We also aim to improve primary healthcare and expand the reach and impact of social assistance programs. Additionally, we are committed to promoting women’s empowerment and reducing maternal and child mortality rates across the states.

The $1.5 billion World Bank loan is allocated to fund two projects. One initiative is the Nigeria Covid-19 Action Recovery and Economic Stimulus—Program for Results (Nigeria CARES), which seeks to enhance access to social transfers and basic services, while also offering grants to impoverished and vulnerable households. The project is funded by an IDA credit of $750 million.

The State Fiscal Transparency, Accountability, and Sustainability Program for Results (SFTAS) is designed to improve spending efficiency, boost revenue mobilisation, and promote accountability in public resource management. Its goal is to enhance the state-level COVID-19 response.

The project is funded by an IDA credit of $750 million.

As of March 31, 2020, the Debt Management Office reported that Nigeria’s total borrowing from China amounted to USD$3.121 billion. The loans amount to USD$3.121 billion and will be allocated to 11 projects, such as the Nigerian Railway Modernisation Project (Idu-Kaduna section) and the Abuja Light Rail Project.

Additional projects in Nigeria encompass the expansion of four airport terminals in Abuja, Kano, Lagos, and Port Harcourt, the modernisation of the Lagos-Ibadan section of the railway, and the rehabilitation and upgrading of the Abuja-Keffi-Makurdi Road.

According to the Debt Management Office, Nigeria’s total public debt stock saw a significant increase in just three months, reaching ₦121.67 trillion ($91.46 billion) as of March 31, 2024. This represents a substantial rise from the previous figure of ₦97.34 trillion ($108.23 billion) recorded in December 2023.

“The debt comprises of loans acquired by the Federal Government, the 36 state governments, and the Federal Capital Territory (FCT), both from external and domestic sources.”