SERAP Demands Accountability
Amidst Nigeria’s rising debt, the Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank to investigate the utilisation of loans by Nigeria’s 36 state governors. SERAP has also called for an immediate suspension of further loans until the states account for the expenditure of previously acquired funds. This demand arises from concerns over the increasing debt profile of these states and allegations of fund mismanagement.
Concerns Over Rising Debt
SERAP, in a letter addressed to World Bank President Ajay Banga, expressed worries about the potential mismanagement and diversion of public funds by state governments. The organisation highlighted that providing loans without ensuring proper accountability is irresponsible. The group emphasised the need for transparency and proper oversight in the management of these loans to prevent misuse.
Legal Action Threatened
SERAP threatened legal action against the World Bank and Nigerian states if they fail to conduct an independent audit. This audit aims to determine how loans have been spent, ensuring politicians do not use them for private lifestyles. Additionally, SERAP emphasised that the World Bank has a legal obligation to ensure appropriate use of funds and recover mismanaged funds.
Government Response
The Nigerian government, represented by its Debt Management Office, has acknowledged the nation’s significant debt, which stands at N121 trillion. Despite this, there are plans to secure additional loans to address various economic challenges. However, SERAP insists that the government must first account for past loans before accumulating more debt.
SERAP’s Legal Pursuit
SERAP has filed a lawsuit at the Federal High Court in Lagos, demanding that the government disclose details of all loans obtained since 1999. This includes loans acquired during the administrations of former Presidents Olusegun Obasanjo, Umaru Yar’Adua, Goodluck Jonathan, and Muhammadu Buhari. The group argues that transparency in these matters is crucial for public trust and accountability.
Importance of Transparency
SERAP argues that public access to information about government spending is essential for democratic governance. They believe that transparency in loan agreements and their expenditures will allow Nigerians to assess their government’s performance, particularly in light of the country’s ongoing economic challenges and widespread poverty.
Follow us on Socials: