VANGUARD
Socio-Economic Rights and Accountability Project, SERAP, has urged the World Bank President Mr Ajay Banga to promptly, transparently and effectively conduct an investigation into the spending of over $8.5 billion loans and other facilities by 36 state governors in Nigeria.
SERAP also urged the Bank to “suspend further applications for loans and any other funding to the 36 states until those states are able to satisfactorily explain details of spending of loans and other facilities obtained from the Bank and its partners.”
Many of the country’s 36 states are allegedly mismanaging public funds which may include loans obtained from the Bank and its partners, and allocations from the Federal Government, which may also include loans obtained from the bank.
In the letter dated November 25, 2023, by SERAP Deputy Director, Kolawole Oluwadare, the organization said: “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.
“We are concerned that 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. It is neither appropriate nor responsible lending to give loans to these states only for the loans to be misspent.”
The letter, read in part: “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 or fail to implement the recommendations contained in this letter, and we may join the country’s 36 states in any such suit…
