The president of the World Bank, Ajay Banga, has been charged to promptly, transparently and effectively conduct an investigation into the spending of loans and other facilities by the governors of the 36 states in Nigeria, and to suspend any loans and funding if there is relevant admissible evidence of mismanagement or diversion of public funds by any of the states.
The request came from the human rights group, Socio-Economic Rights and Accountability Project (SERAP), which equally asked the 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.”
It would be recalled that many of the states are allegedly mismanaging public funds which may include loans obtained from the Bank and its partners, and allocations from the Federal Government (FG), which may also include loans obtained from the Bank.
Referencing its letter dated November 25, 2023, and signed by its deputy director, Kolawole Oluwadare, the group said, “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.”
While stating, “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,” SERAP added, “It is neither appropriate nor responsible lending to give loans to these states only for the loans to be misspent.
“The World Bank’s lending, and support for these states may create the impression of complicity in the allegations of mismanagement or diversion of public funds by the states which may include loans from the Bank and its partners, and federal allocations.
“We would consider the option of pursuing legal action should the World Bank fail or fail to implement the recommendations contained in this letter, and we may join the country’s 36 states in any such suit.
“According to Nigeria’s Debt Management Office, the total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion. The Federal Government’s total public debt portfolio is N78.2 trillion.”
The rights group, therefore, asked the World Bank’s boss to demand expressed commitment from the country’s 36 state governors to address credible allegations of mismanagement or diversion of public funds in their states and provide guarantees that loan and funding from the Bank and its partners would not be used to fund the luxurious lifestyles of politicians.
