SERAP to Tinubu: Probe $1.5bn World Bank loan to 36 states, FCT, Chinese loans of $3.12bn to FG

President Bola Tinubu has been urged to investigate the $1.5 billion World Bank loan obtained by the 36 states of the federation and the Federal Capital Territory.

Tinubu is also asked to probe the alleged mismanagement of the Chinese loans of $3.121 billion obtained by the Federal Government.

The Socio-Economic Rights and Accountability Project (SERAP) made the request in an open letter dated August 10, 2024, by the group’s Deputy Director, Mr. Kolawole Oluwadare, a copy of which was given to Persecondnews in Abuja on Sunday.

SERAP requested that the President instruct the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, along with the relevant anti-corruption agencies, to promptly and thoroughly investigate the loan’s expenditure, with the aim of reducing poverty and enhancing social protection throughout the states.

SERAP demanded that individuals or agencies suspected of “corruption and mismanagement should face prosecution as appropriate if there is sufficient admissible evidence, and any proceeds of corruption should be fully recovered.

It advised Tinubu to instruct the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to jointly track and monitor the spending of the $1.5 billion World Bank loan to Nigeria’s 36 states and Abuja.

It stated: “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.

“So long as high-ranking public officials go largely unpunished for their alleged crimes,” there would be a continued “impunity for corruption in the management of World Bank loans and Chinese loans.

“It is by pursuing these allegations and taking the evidence before the court that the truth will be revealed and justice best served.

“We note that while a governor may enjoy immunity from arrest and prosecution, he does not enjoy immunity from investigation. Any criminal allegation against a sitting governor can and should be investigated pending the time the governor leaves office and loses immunity.

“The findings of such investigation can also be the basis for initiating impeachment proceedings against the governor.”

The group stated that the Tinubu administration has a legal responsibility to ensure accountability for the expenditure of loans obtained from the World Bank and China.

“SERAP is concerned about the continuing lack of transparency and accountability in the management of World Bank loans and Chinese loans obtained by the states and the Federal Government.

“The recommended measures should be taken within seven days of the receipt and/or publication of this letter or else we shall consider appropriate legal actions to compel your government to comply with our request in the public interest.

“Prevention of corruption in the spending of World Bank loans and other loans are serious and legitimate public interests. There is a legitimate public interest in ensuring justice and accountability for alleged corruption and mismanagement in the management of these loans.

“According to our information, the World Bank on December 15, 2020, approved a $1.5bn loan for Nigeria’s 36 states and Abuja for social protection and strengthened state-level COVID-19 response. The loan aims to help the states and Abuja build a resilient recovery post-COVID-19 and reduce poverty.

“Specifically, the loan aims to increase access to basic education, quality water and sanitation services; improve primary healthcare; and increase the coverage and effectiveness of social assistance programs, promote women’s empowerment; and reduce maternal and child mortality across the states.

“SERAP notes that the Debt Management Office data revealed that the total borrowing by Nigeria from China was USD$3.121 billion as of March 31, 2020. The USD$3.121 billion loans are for 11 projects, including the Nigerian Railway Modernisation Project (Idu-Kaduna section) and the Abuja Light Rail Project, among others.

“Nigeria’s total public debt stock, including external and domestic debts, increased by N24.33 trillion in three months alone, from N97.34 trillion ($108.23 billion) in December 2023 to N121.67 trillion ($91.46 billion) as of March 31, 2024.

“The debt represents external and domestic loans obtained by the Federal Government, the 36 state governments, and the Federal Capital Territory,” SERAP stated.