SERAP urges World Bank to suspend loans to states

SERAP urges World Bank to suspend loans to states

Socio-Economic Rights and Accountability Project (SERAP) has urged World Bank President, Ajay Banga, to promptly, transparently and effectively conduct an investigation into spending of loans and other facilities by Nigeria’s 36 state governors.

Besides asking the global lender to suspend further loans to unsatisfactory states, the group, in a letter, at the weekend signed by deputy director, Kolawole Oluwadare, said the global lender and partners should be firm with global practices.

SERAP said: “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 them to be misspent.”

It argued that lending and support for the states in question might create an impression of complicity.According to the Debt Management Office (DMO), total public indebtedness for states and Federal Capital Territory (FCT) is N9.17 trillion, while that of the Federal Government stands at N78.2 trillion.

The organisation lamented that the country’s total public debt stock, including external and domestic debts, increased to N46.25 trillion or $103.11 billion in the fourth quarter of last year.

The CSO added that the World Bank and its partners have obligations under international anti-corruption and human rights laws to promote transparency and accountability in the management of public funds.