SERAP flays World Bank’s $500m electricity fund approved for Nigeria

The $500 million funds approved to improve access to electricity in Nigeria between 1999 and 2020 has drawn the ire of the Socio-Economic Rights and Accountability Project (SERAP) and has asked the World Bank to release archival records and documents relating to spending on the energy sector.

SERAP wants the bank to show its role in the implementation of any funded electricity projects, identify and name any executed projects, and Nigerian officials, ministries, departments and agencies involved in the execution of such projects.

Last week, the World Bank Board of Directors had approved $500 million to help boost access to electricity in Nigeria and improve the performance of the electricity distribution companies in the country.

In the application to World Bank President Mr David Malpass, dated February 6, 2021, signed by SERAP Deputy Director, Mr Kolawole Oluwadare, the organization urged the Bank to explain the rationale for the approval of $500m to implement electricity projects in the country, despite reports of widespread and systemic corruption in the sector and the failure of the authorities to enforce a court judgment ordering the release of details of payments to allegedly corrupt electricity contractors who failed to execute any projects.

SERAP’s report is entitled, “From darkness to darkness”, a copy of which is obtained by Persecondnews.

“This application is brought pursuant to the World Bank’s Access to Information Policy, which aims to maximize access to information and promote the public good.

“There is a public interest in Nigerians knowing about the Bank’s supervisory role and specifically its involvement in the implementation of electricity projects, which it has so far funded.

“The $500m is part of the over $1billion available to Nigeria under the project titled: Nigeria Distribution Sector Recovery Program.

“We would be grateful for details of any transparency and accountability mechanisms under the agreement for the release of funds, including whether there is any provision that would allow Nigerians and civil society to monitor the spending of the money by the government, its agencies, and electricity distribution companies.

“Should the Bank fail and/or refuse to release the information and documents as requested, SERAP would file an appeal to the Secretariat of the Bank’s Access to Information Committee to challenge any such decision, and if it becomes necessary, to the Access to Information Appeals Board. SERAP may also consider other legal options outside the Bank’s Access to Information framework.

“SERAP believes that releasing the information and documents would enable Nigerians and civil society to meaningfully engage in the implementation of electricity projects funded by the Bank, contribute to the greater public good, and enhance the Bank’s oft-stated commitment to transparency and accountability,” the letter copied to Mr Shubham Chaudhuri, World Bank Country Director for Nigeria, states.

SERAP said:“The World Bank has been and continues to be involved in overseeing the transfer, disbursement, spending of funds on electricity projects in Nigeria.

“The Bank also reportedly approved a $750 million loan for Nigeria’s electricity sector in June 2020 to cut tariff shortfalls, protect the poor from price adjustments, and increase power supply to the grid. As such, the World Bank is not a neutral party in this matter.

“SERAP is seriously concerned that the funds approved by the Bank are vulnerable to corruption and mismanagement. The World Bank has a responsibility to ensure that the Nigerian authorities and their agencies are transparent and accountable to Nigerians in how they spend the approved funds for electricity projects in the country, and to reduce vulnerability to corruption and mismanagement.

“SERAP also believes that the release of the requested information and documents is of paramount importance to the public interest in preserving the legitimacy, credibility and relevance of the Bank as a leading international development institution.

“The Bank ought to lead by example in issues such as transparency and public disclosure raised in this request.

“It would also demonstrate that the Bank is willing to put people first in the implementation of its development and governance policies and mandates, as well as remove any suspicion of the Bank’s complicity in the alleged mismanagement of electricity projects-related funds.

“How Nigerians are paying the price for corruption in the electricity sector documents widespread and systemic corruption in the electricity sector, and reveals how about N11 trillion electricity fund was squandered by successive administrations in Nigeria since the return of democracy in 1999?

“This report raises specific questions of public interest, and the World Bank ought to be concerned about how Nigerian authorities are addressing reports of widespread and systemic corruption in the electricity sector, and to seek some answers from the authorities on the problems.”

Noting that millions of Nigerians still lack access to free pre-paid meters, SERAP pointed out that authorities continue to use patently illegal and inordinate estimated billing across the country, increasing consumer costs, and marginalizing Nigerians living in extreme poverty.

It demanded the disclosure and release of information and documents relating to the spending of funds approved and released to Nigeria between 1999 and 2020 to improve access to regular and uninterrupted electricity supply.

SERAP also wants copies of supervision reports, periodic reviews and other appropriate reports on the bank’s role in the spending and disbursement of the funds, as well as specific projects on which the funds have been spent, among others.