The Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend loans to Nigeria’s 36 states, citing alarming allegations of mismanagement of public funds.
The National Bureau of Statistics recently revealed that every Nigerian shoulders a debt burden of N396,376.19, and the country’s total public debt has surged by 75.27%, reaching N87.38 trillion in the second quarter of 2023.
In a letter addressed to the World Bank, SERAP urged the global lender to conduct a thorough investigation into the spending practices of state governors.
The organization advocates for the suspension of loans if concrete evidence of financial mismanagement emerges.
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Furthermore, SERAP is pushing for a freeze on any new loan applications until the states provide transparent explanations for the utilization of previously acquired funds.
Kolawole Oluwadare, Deputy Director of SERAP, emphasized these concerns during a press release on Sunday.
He stated that 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.
Citing data from Nigeria’s Debt Management Office, SERAP highlighted that the combined public debt of the country’s 36 states and the Federal Capital Territory amounts to a staggering N9.17 trillion.
Additionally, the group pointed out that the Federal Government’s total public debt stands at N78.2 trillion.
The World Bank’s response to these allegations and its actions in the coming weeks will likely have significant implications for Nigeria’s economic outlook and international financial relations.
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