Investigate $1.5bn World Bank and $3bn Chinese Loans - SERAP Tells Tinubu

The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to launch an investigation into the spending of a $1.5billion World Bank loan and $3billion in Chinese loans.

These funds were allocated to Nigeria's 36 states and the Federal Capital Territory (FCT) for poverty reduction and social protection initiatives.

In an open letter dated August 10, 2024, and signed by SERAP Deputy Director Kolawole Oluwadare, the organisation expressed concerns over reports suggesting that these loans may have been mismanaged or diverted.

SERAP emphasized the need for accountability, stating, "Ensuring accountability for the spending of World Bank loan and Chinese loans would build trust in democratic institutions with the ultimate aim of strengthening the rule of law."

The $1.5billion World Bank loan, approved on December 15, 2020, was intended to support social protection and strengthen state-level COVID-19 responses. The loan aimed to increase access to basic education, quality water and sanitation services, improve primary healthcare and enhance social assistance programs. It also sought to promote women's empowerment and reduce maternal and child mortality across the states.

On the other hand, the $3.121billion Chinese loans, as of March 31, 2020, were designated for 11 projects, including the Nigerian Railway Modernisation Project (Idu-Kaduna section), Abuja Light Rail Project and the Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos and Port Harcourt).

SERAP called on President Tinubu to direct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, along with appropriate anti-corruption agencies, to promptly and thoroughly investigate the spending of these loans. The organisation stressed that individuals or agencies suspected of corruption and mismanagement should face prosecution if there is sufficient admissible evidence, and any proceeds of corruption should be fully recovered.

Highlighting the importance of transparency, SERAP stated, "Impunity for corruption in the management of World Bank loans and Chinese loans will continue as long as high-ranking public officials go largely unpunished for their alleged crimes."

The group also noted that while governors may enjoy immunity from arrest and prosecution, they do not enjoy immunity from investigation. Any criminal allegations against sitting governors can and should be investigated pending the time they leave office and lose immunity.

SERAP warned that if the recommended measures are not taken within seven days of the receipt and/or publication of the letter, it would consider appropriate legal actions to compel the government to comply with their request in the public interest.

The organization's call for action comes amid growing concerns about the lack of transparency and accountability in the management of loans obtained by the states and the Federal Government.

According to the Debt Management Office, Nigeria's total public debt stock, including external and domestic debts, increased by ₦24.33trillion in three months alone, from ₦97.34trillion ($108.23billion) in December 2023 to ₦121.67trillion ($91.46 billion) as of March 31, 2024.

SERAP concluded by emphasizing the legitimate public interest in ensuring justice and accountability for alleged corruption and mismanagement in the management of these loans, stating, "Prevention of corruption in the spending of World Bank loans and other loans are serious and legitimate public interests."