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$114.28m World Bank Loan: SERAP Demands Public Scrutiny, Transparency In Spending

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Following World Bank’s approval of $114.28million credit and grant to fight Covid-19 in Nigeria, the Socio-Economic Rights and Accountability Project (SERAP) has asked the global financial institution to prevail on the federal and 36 state governors to accept voluntary scrutiny by Nigerians and civil society regarding the spending of the funds.
SERAP, in an open letter to the World Bank President, Mr. David Malpass, dated August 8, 2020, and signed by SERAP Deputy Director, Kolawole Oluwadare, said “the Nigerian government must be made to publicly commit to transparency and accountability in the spending of the fund, including by publishing details on a dedicated website.
“Details of how they will spend the money to buy medical equipment, and improve access to clean water, sanitation and hygiene, must also be made public”, SERAP demanded.
The World Bank Board of Directors, had last Friday, approved $114.28million financing “to help Nigeria prevent, detect and respond to the threat posed by Covid-19 with a specific focus on state level responses.”
According to the bank, the $100million credit with Project ID number: P173980, is due to be paid back over 30 years, with additional five years grace period.
But SERAP in its letter said “The World Bank has a responsibility to ensure that federal authorities and state governments are transparent and accountable to Nigerians in how they spend the approved credit and grant.
“The bank should tread carefully in the disbursement of funds or distribution of resources to states if it is to reduce vulnerability to corruption and mismanagement.”
SERAP expressed “serious concerns that the money and resources may be stolen, diverted or mismanaged by state governors without effective transparency and accountability mechanisms, especially given increasing reports of allegations of corruption and mismanagement of Covid-19 funds by agencies of the Federal Government and state governments, and impunity of perpetrators.”
SERAP said: “Insisting on transparency and accountability would ensure repayment of the credit, and protect the project objectives and intended purposes for which the funds and resources are approved, disbursed and distributed.”
According to SERAP, “The Bank’s power to provide credits and grants is coupled with a fiduciary responsibility to ensure that governments spending such funds meet international standards of transparency and accountability, including those entrenched in the UN Convention against Corruption to which Nigeria is a state party.”
The letter copied to the World Bank Country Director for Nigeria, Shubham Chaudhuri, read in part: “Implementing these recommendations would prevent a repeat of alleged diversion and mismanagement of recovered Abacha loot disbursed by the Federal Government to state governments.
“The World Bank should make clear to all the governors that it will cancel the credit and grant should they renege on their transparency and accountability commitments to spend the money and use the resources exclusively for Covid-19 related projects, and not to steal, divert or mismanage them.”
“As the level of Federal Government monitoring of the spending of the credit and grant and use of the resources by state governors may be based on political considerations, the bank’s influence might be the only restraining force state governors will take seriously.
“SERAP encourages you and the World Bank in any future engagements with state governments in Nigeria to insist on accessing information on how governors are spending security votes, and the amounts of public funds states are allocating to pay former governors life pensions, among others, as well as consider the level of corruption within each state before approving any credits and grants.
“SERAP also encourages you and the World Bank not to sacrifice international standards of transparency and accountability in the rush to provide Covid-19 credit and grant to the 36 state governments.
“According to our information, the World Bank Board of Directors on Friday, August 7, 2020 approved $114.28million financing ‘to help Nigeria prevent, detect and respond to the threat posed by Covid-19 with a specific focus on state level responses’.
“This includes $100million credit from the International Development Association (IDA) and $14.28million grant from the Pandemic Emergency Financing Facility.
“SERAP notes that the Government of Nigeria is expected to disburse the money and distribute the resources to the 36 state governments and the Federal Capital Territory (FCT) as ‘immediate support to break the chain of Covid-19 local transmission and limit the spread of Coronavirus through containment and mitigation strategies.’
“The approved money will also ‘help to finance federal procurements of medical equipment, laboratory tests, and medicines to be distributed to the states based on their needs, and to provide support to laboratories for early detection and confirmation; equipping and renovating isolation and treatment centres, including community support centres; and improving in patient transfer systems through financing of ambulances and training’.”
SERAP, therefore, urged Malpass and the World Bank to: “Disclose and widely publish the terms and conditions of the credit and grant, and the exact amount repayable by Nigeria in 30 years’ time, including the details of the interest, if any; and the consequences of Nigeria defaulting.
“To also ask President Muhammadu Buhari to instruct the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to jointly track and monitor spending of the credit and grant by state governments; ask state governments to allow the media to freely report on their spending of the funds and use of the resources, and not to clampdown on journalists and the media in the exercise of their constitutional responsibilities to expose corruption and hold governments to account.
“To also ask state governments to explicitly commit to encouraging and protecting whistle-blowers as a way of ensuring that the funds and resources are not stolen, diverted or mismanaged; clarify if any, to the Bank’s knowledge and information, the credit and grant have been approved by Nigeria’s National Assembly pursuant to its constitutional duties, including its oversight functions under Section 88 of the 1999 Constitution (as amended).
“Ensure increased transparency of sanctions and terms and conditions of the credit and grant to each state to enable Nigerians to ask questions as to the spending of the money and use of the resources from their state governments.”

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Pharmacy Council Seals 666 Medicine Stores In Kaduna Markets

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The Pharmacy Council of Nigeria (PCN), in an enforcement excercise, shut down 666 medicine stores in open drug markets and other locations in Kaduna state .
Addressing newsmen yesterday in Kaduna, the Director Enforcement of the PCN, Stephen Esumobi, said the PCN also carried out the enforcement excercise in Zaria LGA of the state.
At the end of the enforcement which began early in the week, Esumobi said a total of 895 premises were visited.
“ We visited 75 pharmacies, 514 patent medicine shops, 306 other premises .
“The premises sealed included 47 pharmacies, 313 patent medicine shops and 306 illegal medicine shops,” he said.
He explained that the presmises were sealed for offences ranging from sale of medicines in the open drug market, operating without registration with PCN, poor documentation, poor storage facilities, stocking of ethical products without the supervision of a pharmacist.
Esumobi added that other offences were wholesalers engaging in retail activities, non-pharmacists having access to poison cupboards, patent medicine shops engaging in clinical practice and training apprentices among others.
“One major obstacle militating against the quality, safety and efficacy of medicines in Nigeria is the sale of medicines in open drug markets.
“Many medicine shops in the open drug markets and some other locations across the Kaduna state are not registered by the PCN and are operating illegally.
“The storage conditions for medicines in these premises are poor as medicines are stored at temperature and humidity conditions that are at variance with manufacturers recommnendations.
“The implication of this is that most of the medicines sold in these locations may no longer be fit for human consumption due to degradation of the active ingredients.
“Some of the products of degradation of these medicines are harmful thus posing a threat to public health.
“The premises do not have pharmacists to supervise the sale of ethical medicines and other medicines with narrow margin of safety thus exposing consumers to harmful consequences of the wrong use of the medicines,”he said.
Speaking further, the director said most of the medicine dealers engage in the illegal sale of substances of abuse to members of the public, thereby aggravating the social and security challenges emanating from the illicit use of the medicines.
He said the PCN had communicated on many occasions with the relevant stakeholders in open drug markets in Zaria and Kaduna city on the need to relocate to registrable locations or a coordinated wholesale centre as their activities are in total violation of the National Drug Distribution Guidelines.

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Flood: Food Shortage Hits Maiduguri

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There is growing concern over shortage of foodstuff and other commodities in Maiduguri as thousands of residents struggle for survival, aftermath ravaging flood.
The Tide’s source reports that the flood submerged major markets including grain, fruit and vegetable depots in the town, while many shopping complexes and plazas continue to remain closed.
The development had led to shortage of food items making the prices of the few available ones to be high.
“It is difficult to find foodstuff now as all major markets are submerged.
“I can’t operate my restaurant in-spite of pressure from customers, because the foodstuff I stocked have been exhausted,” Hajara Mohammed said.
Other food vendors who attended to customers the previous day, including, Amina Isa, Rhoda Abdullahi and Jummai Mohammed said their stocks had also been exhausted and there was nowhere to restock.
The Tide source reports that the health sector was also affected as a result of the flood that submerged the University of Maiduguri Teaching Hospital and Maiduguri Specialist Hospital.
Already, some residents have started showing concern over possible public health crisis, including outbreaks of cholera, typhoid and other water borne diseases.
They specifically expressed worry over the flood that washed away corpses at the Maiduguri cemetery.
Meanwhile, Gov. Babagana Zulum had gone round some emergency camps to distribute cash to displaced persons as they awaits the arrival of foodstuff.

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Stop Bullying Nigerians, Seadogs Tells Security Agencies

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The National Association of Seadogs (Pyrates Confraternity) has urged security agencies to stop bullying innocent Nigerians, criticising the infringement on fundamental human rights and the undermining of Nigeria’s democratic values.
In a statement by NAS Cap’n, Dr Joseph Oteri, the association expressed concern that despite the current economic challenges and the escalating insecurity in the country, security agencies are compounding the situation by harassing innocent citizens.
Citing the recent arrest of the President of the Nigeria Labour Congress and the terrorism charges against several anti-high cost of living protesters, the association lamented the alarming trend of security agencies using the pretext of combating terrorism to bully law-abiding citizens.
The statement read, “The National Association of Seadogs (Pyrates Confraternity) is deeply troubled by the economic challenges facing Nigerians and the rising insecurity gripping our nation.
“Nigeria, as Africa’s largest economy, is grappling with issues such as high inflation, foreign exchange rate volatility, low productivity, weak governance, and inadequate infrastructure. These challenges not only threaten our growth prospects but also jeopardise stability.
“In addition to these pressing concerns, insecurity in Nigeria is escalating. A recent report by SBM Intelligence revealing 7,568 kidnappings in 1,130 incidents between July 2023 and June 2024 highlights the growing insecurity affecting our country.
“Amid these alarming circumstances, where Nigerians are
already suffering from economic hardships and living in fear due to rising insecurity, it is disheartening to witness security agencies bullying innocent citizens under the guise of counter-terrorism.”
The NAS Cap’n further stated that such heavy-handed tactics violate fundamental human rights and erode the trust between citizens and the security forces tasked with their protection.
He added, “The National Association of Seadogs (Pyrates Confraternity) unequivocally condemns these actions by security agencies that trample on basic human rights and undermine democratic principles.”
The association called for a thorough investigation into the persecution of innocent Nigerians, stressing that the country’s democracy is founded on fairness, justice, and equality before the law.
“It is incumbent upon all relevant authorities at federal, state, and local levels to ensure that those responsible for violating the rights of Nigerian citizens are held accountable within Nigerian laws and international human rights standards.
“We urge all stakeholders, including government bodies, civil society organisations, religious leaders, and the media, to collaborate in finding lasting solutions to improve the safety and well-being of our fellow citizens.
“We must unite to condemn the bullying of innocent Nigerians and give them a voice. They do not deserve the injustices inflicted upon them, especially in these times when many families are struggling with harsh economic realities and pervasive insecurity across the country. We must stand together to ensure such injustices are not tolerated in our society,” he concluded.

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