World Bank should stop lending to Nigeria’s 36 states says SERAP

The World Bank should stop lending to Nigeria’s 36 states due to mismanagement of public funds, according to the Socio-Economic Rights and Accountability Project.

According to the National Bureau of Statistics, each Nigerian owes N396,376.19. Nigeria’s public debt rose 75.27 percent to N87.38tn in Q2 2023.

SERAP wrote to the World Bank to scrutinize state governors’ spending and suspend loans if mismanagement is found.

The group wants to halt loan applications until states clarify past money use.

On Sunday, SERAP Deputy Director Kolawole Oluwadare called.

The global lender was also urged 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 stated that the World Bank and its partners cannot continue to lend and fund certain states due to credible claims of mismanagement or diversion of public funds.

We worry that the Bank’s investments in several of the nation’s 36 states could be mismanaged or diverted. Granting loans to these states only to see them wasted is neither responsible nor appropriate.

Based on Nigeria’s Debt Management Office data, SERAP noted that the 36 states and the Federal Capital Territory have N9.17tn in public debt.

The Federal Government’s public debt is N78.2tn, the group added.

The World Bank chief was urged by SERAP to get Nigeria’s 36 governors to commit to investigating credible complaints of public fund misuse or diversion.