Socio-Economic Rights and Accountability Project, on Sunday, called on the World Bank to stop advancing loans to Nigeria’s 36 states, citing allegations of mismanagement of public funds.
Recently, National Bureau of Statistics had revealed that each Nigerian carries a debt of N396,376.19. Nigeria’s total public debt surged by 75.27 per cent, reaching N87.38trn in Q2 2023.
SERAP, in a urged the World Bank to investigate state governors’ spending, saying loans to them should be suspended if evidence of mismanagement surfaces.
The group also advised the World Bank to freeze further loan applications until states transparently explain how they utilised previous funds.
SERAP’s Deputy Director, Kolawole Oluwadare, made this call on the global financial institution.
SERAP also asked the World Bank to “suspend further applications for loans and any other funding to the 36 states until these states can satisfactorily explain details of spending of loans and other facilities obtained from the Bank and its partners.”
The statement further read, “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.”
SERAP, while referring to data from Nigeria’s Debt Management Office, highlighted that the combined public debt of the country’s 36 states and the Federal Capital Territory amounts to N9.17tn.
The group also noted the Federal Government’s total public debt stands at N78.2tn.
SERAP urged the World Bank’s chief to seek a clear commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds within their respective states.