SERAP has called on President Tinubu to launch an investigation into the $1.5 billion World Bank loan to states and the $3 billion Chinese loan, seeking transparency and accountability in the management of these funds.

President Bola Tinubu has received a request from the Socio-Economic Rights and Accountability Project (SERAP) to instruct Lateef Fagbemi (SAN), Attorney General of the Federation and Minister of Justice, along with relevant anti-corruption agencies, to conduct a swift and comprehensive examination into how $1.5bn World Bank loan acquired by 36 states plus Abuja for poverty reduction as well as social protection throughout these areas was utilized.

“If there is enough admissible evidence, suspected individuals involved in corruption and mismanagement must be prosecuted accordingly while all corrupt proceeds ought to be fully retrieved,” stated SERAP.

SERAP advised him to instruct Fagbemi and relevant anti-corruption bodies to swiftly look into the purported mishandling of $3.121 billion in Chinese loans procured by the Nigerian Government for oversight.

The organization, in an open letter dated August 10th, 2024 and signed by its deputy director Kolawole Oluwadare, emphasized that accountability for the allocation of loans from both World Bank and China is crucial. By achieving this goal, it would establish confidence in democratic institutions towards reinforcing a robust legal system.

The lack of consequences for senior public officials accused of corruption enables impunity in the management of loans from both the World Bank and China.

By bringing these allegations to court and presenting evidence, the truth will be exposed and justice will prevail.

There have been allegations that the $1.5bn loan given to the 36 states and Abuja by the World Bank, as well as the $3bn Chinese loans obtained by the Federal Government may not have been properly used or accounted for.

It would be in complete accordance with Nigeria’s Constitution and international anti-corruption commitments to examine and bring charges against claims of corruption or mishandling related to the utilization of loans from both the World Bank and China.

It is worth noting that although a governor may be immune to arrest and prosecution, immunity from investigation does not exist. Therefore, any criminal accusation against a current governor can and should undergo thorough scrutiny until the time they are no longer in office and their immunity ceases to apply.

The results of the investigation may serve as grounds for commencing impeachment proceedings against the governor.

It is the responsibility of your government to uphold legal obligations regarding accountability for loans received from both China and the World Bank. SERAP has expressed apprehension over persistent deficits in transparency and accountability surrounding how these loans are managed by both states and Federal authorities.

Kindly ensure that the proposed actions are implemented within 7 days of receiving and/or publishing this letter. Failure to respond shall result in SERAP pursuing necessary legal avenues to secure compliance with our request for public interest purposes.

Expressing concern over allegations of corruption and mismanagement in the spending of World Bank loans, Chinese loans obtained by Nigeria’s 36 states and Federal Government, as well as the long-standing impunity enjoyed by those involved, SERAP stated their worry.

The ability of all levels of government to tackle the widespread poverty and economic inequality in states and Federal Capital Territory has been compromised by these accusations.

Your government is responsible for eradicating all instances of corrupt practices and abuse of power, as stipulated in Section 15(5) which includes the federal or state governments, local government councils and anyone who wields authority on their behalf.

The Nigerian government is obligated by the country’s constitution and international human rights agreements, of which it is a signatory, to investigate and bring legal action against instances of corruption in the utilization of World Bank loans as well as Chinese loans. Furthermore, authorities are required to guarantee access to justice for those affected by corrupt practices while providing them with effective solutions.

Due to accusations of corruption and poor handling of the loan funds, citizens who were already struggling with poverty are now unable to meet even their basic survival needs.

Ensuring justice and accountability for alleged corruption and mismanagement in the management of World Bank loans and other funds is a crucial public interest. Preventing such acts from occurring is also an essential concern that aligns with legitimate public interests.

Our sources reveal that on December 15th, 2020, the World Bank granted Nigeria’s thirty-six states and Abuja a loan of $1.5 billion for enhanced state-level COVID-19 response initiatives and social protection measures aimed at reducing poverty while fostering resilient post-COVID recovery.

The loan has a targeted goal of improving access to fundamental education, enhancing the quality and availability of water and sanitation services, bettering primary healthcare standards as well as amplifying social assistance programs’ coverage and effectiveness. Additionally, it aims at promoting women’s empowerment while diminishing maternal and child mortality rates throughout all states involved.

The World Bank has granted a loan of $1.5 billion for two initiatives in Nigeria. The first initiative, known as the Nigeria Covid-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES), is intended to provide support by means of social transfers and essential services while also issuing grants to impoverished households. This project will be funded using an International Development Association credit totaling $750 million.

The State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS) is the second program that seeks to reinforce state-level response towards COVID-19 by boosting expenditure efficiency, improving revenue generation capacity as well as enhancing accountability in managing public resources.

Funding for the project is provided by a credit of $750 million from the International Development Association (IDA).

As of March 31, 2020, Nigeria’s borrowing from China amounted to USD$3.121 billion as reported by the Debt Management Office. The loans were granted for a total of eleven projects that include the Idu-Kaduna section of the Nigerian Railway Modernization Project and Abuja Light Rail Project.

Other projects that are part of this initiative include the expansion of four airport terminals in Nigeria (Abuja, Kano, Lagos, and Port Harcourt), modernization of the Nigerian railway system (Lagos-Ibadan section), and rehabilitation/upgrading work on Abuja-Keffi-Makurdi Road Project.

In just three months, Nigeria’s total public debt stock, which comprises both domestic and external debts, soared by ₦24.33 trillion from its December 2023 figure of ₦97.34 trillion ($108.23 billion) to reach ₦121.67 trillion ($91.46 billion) as recorded on March 31st in the same year; this is according to reports released by the Debt Management Office (DMO).

External and domestic loans obtained by the Federal Government, 36 state governments, and the Federal Capital Territory (FCT) make up the debt.