In a recent development, the Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend loans to Nigeria’s 36 states, raising concerns over the alleged mismanagement of public funds.
According to data released by the National Bureau of Statistics, each Nigerian now carries a debt burden of N396,376.19, with the country’s total public debt skyrocketing by 75.27% to reach N87.38 trillion in the second quarter of 2023.
In a letter addressed to the World Bank, SERAP urged the global financial institution to launch an investigation into the spending practices of state governors. The organization advocates for the suspension of loans in the event that evidence of mismanagement is uncovered. Furthermore, SERAP is calling for a freeze on any future loan applications until states provide transparent explanations for the utilization of previous funds.
Kolawole Oluwadare, Deputy Director of SERAP, emphasized these concerns, stating, “The World Bank and its partners cannot continue to give loans and other funding to these states where there are credible allegations of mismanagement or diversion of public funds.”
Referring to data from Nigeria’s Debt Management Office, SERAP highlighted that the combined public debt of the country’s 36 states and the Federal Capital Territory stands at N9.17 trillion. Additionally, the group noted that the Federal Government’s total public debt has reached N78.2 trillion.
SERAP is urging the chief of the World Bank to secure a clear commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds within their respective states. The organization contends that responsible lending should not support states where there is a significant risk of funds being misused.
As the situation unfolds, the scrutiny over Nigeria’s public finances continues to intensify, prompting calls for increased transparency and accountability in the utilization of funds borrowed from international institutions.