SERAP urges Tinubu to investigate $1.5bn World Bank, $3bn Chinese loans
The Socio-Economic Rights and Accountability Project (SERAP) has issued a seven-day ultimatum to President Bola Tinubu, calling for an immediate investigation into the use of $1.5 billion in World Bank loans and $3.121 billion in Chinese loans allocated to Nigeria’s 36 states and the Federal Capital Territory.
The funds were intended for poverty alleviation, social protection, and infrastructure projects.
In an open letter, SERAP, through its Deputy Director Kolawole Oluwadare, urged President Tinubu to direct the Attorney General of the Federation, Mr. Lateef Fagbemi, SAN, and relevant anti-corruption agencies to probe the spending of these loans.
The advocacy group expressed concerns that the funds may have been mismanaged or diverted, undermining efforts to address poverty and economic inequality in the country.
SERAP stressed that while state governors may enjoy immunity from prosecution, they can still be investigated for criminal allegations, with findings potentially leading to impeachment proceedings.
The group emphasised that ensuring accountability in the management of these loans is essential to restoring public trust in Nigeria’s democratic institutions and strengthening the rule of law.
The letter further called on President Tinubu to instruct the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) to jointly track and monitor the spending of the World Bank and Chinese loans.
SERAP warned that impunity for corruption would persist unless high-ranking officials are held accountable for their actions.
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.”
“It is by pursuing these allegations and taking the evidence before the court that the truth will be revealed and justice best served.
“There are reports that the $1.5bn World Bank loan to the 36 states and Abuja and the $3bn Chinese loans obtained by the Federal Government may have been mismanaged or diverted, and in any case remain unaccounted for,” the letter read.
SERAP also highlighted the significant increase in Nigeria’s public debt, which rose from N97.34 trillion in December 2023 to N121.67 trillion as of March 31, 2024.
The group expressed concern that the growing debt burden could worsen the country’s economic challenges if the loans are not properly managed.
The letter continued, “According to the Debt Management Office, the total borrowing by Nigeria from China was USD$3.121 billion, as at March 31, 2020.
“The USD$3.121 billion loans are for 11 projects including the Nigerian Railway Modernization Project (Idu-Kaduna section); and Abuja Light Rail Project.
“Others include the Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos and Port Harcourt), Nigerian Railway Modernization Project (Lagos-Ibadan section) and Rehabilitation and Upgrading of Abuja – Keffi- Makurdi Road Project.
“According to the Debt Management Office, Nigeria’s total public debt stock, including external and domestic debts, increased by ¦ 24.33 trillion in three months alone, from ¦ 97.34 trillion ($108.23 billion) in December 2023 to ¦ 121.67 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 (FCT).
“In conclusion, SERAP stated that if the government fails to act within seven days, it would consider taking legal action to compel the administration to comply with its demands in the public interest.
“The organisation underscored that transparency and accountability in the use of international loans are critical to achieving sustainable development and improving the lives of Nigerians.”
