The Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank to release archival records and documents relating to spending on all approved funds to improve access to electricity in Nigeria between 1999 and 2020.
It also demanded it to show the bank’s role in the implementation of any funded electricity projects, identify and name any executed projects, and Nigerian officials, ministries, departments and agencies involved in the execution of such projects.
The World Bank Board of Directors had, last week, approved $500million to help boost access to electricity in Nigeria and improve the performance of the electricity distribution companies in the country.
In the application to World Bank President, Mr David Malpass, dated February 6, 2021, signed by SERAP Deputy Director, Kolawole Oluwadare, the organization urged the Bank to explain the rationale for the approval of $500million to implement electricity projects in the country, despite reports of widespread and systemic corruption in the sector, and the failure of the authorities to enforce a court judgment ordering the release of details of payments to allegedly corrupt electricity contractors who failed to execute any projects.
SERAP said, “This application is brought pursuant to the World Bank’s Access to Information Policy, which aims to maximize access to information and promote the public good. There is a public interest in Nigerians knowing about the Bank’s supervisory role and specifically its involvement in the implementation of electricity projects, which it has so far funded.”
According to SERAP, “The $500million is part of the over $1billion available to Nigeria under the project titled: Nigeria Distribution Sector Recovery Program.
“We would be grateful for details of any transparency and accountability mechanisms under the agreement for the release of funds, including whether there is any provision that would allow Nigerians and civil society to monitor the spending of the money by the government, its agencies, and electricity distribution companies.”
SERAP also said, “Should the Bank fail and/or refuse to release the information and documents as requested, SERAP would file an appeal to the Secretariat of the Bank’s Access to Information Committee to challenge any such decision, and if it becomes necessary, to the Access to Information Appeals Board. SERAP may also consider other legal options outside the Bank’s Access to Information framework.”
The letter, copied to the World Bank Country Director for Nigeria, Shubham Chaudhuri, reads in part, “SERAP believes that releasing the information and documents would enable Nigerians and civil society to meaningfully engage in the implementation of electricity projects funded by the Bank, contribute to the greater public good, and enhance the Bank’s oft-stated commitment to transparency and accountability.
“The World Bank has been and continues to be involved in overseeing the transfer, disbursement, spending of funds on electricity projects in Nigeria. The Bank also reportedly approved a $750million loan for Nigeria’s electricity sector in June, 2020, to cut tariff shortfalls, protect the poor from price adjustments, and increase power supply to the grid. As such, the World Bank is not a neutral party in this matter.
“SERAP is seriously concerned that the funds approved by the Bank are vulnerable to corruption and mismanagement. The World Bank has a responsibility to ensure that the Nigerian authorities and their agencies are transparent and accountable to Nigerians in how they spend the approved funds for electricity projects in the country, and to reduce vulnerability to corruption and mismanagement.
“SERAP also believes that the release of the requested information and documents is of paramount importance to the public interest in preserving the legitimacy, credibility and relevance of the Bank as a leading international development institution. The Bank ought to lead by example in issues such as transparency and public disclosure raised in this request.
“It would also demonstrate that the Bank is willing to put people first in the implementation of its development and governance policies and mandates, as well as remove any suspicion of the Bank’s complicity in the alleged mismanagement of electricity projects-related funds.
“SERAP’s report, titled: From darkness to darkness: How Nigerians are paying the price for corruption in the electricity sector documents widespread and systemic corruption in the electricity sector, and reveals how about N11trillion electricity fund was squandered by successive administrations in Nigeria since the return of democracy in 1999.
“This report raises specific questions of public interest, and the World Bank ought to be concerned about how Nigerian authorities are addressing reports of widespread and systemic corruption in the electricity sector, and to seek some answers from the authorities on the problems.”
SERAP, while noting that millions of Nigerians still lack access to free pre-paid meters, stressed that authorities continue to use patently illegal and inordinate estimated billing across the country, increasing consumer costs, and marginalizing Nigerians living in extreme poverty.
The organisation, therefore, urged Malpass to disclose and release information and documents relating to the spending of funds approved and released to Nigeria between 1999 and 2020 to improve access to regular and uninterrupted electricity supply, including copies of supervision reports, periodic reviews and other appropriate reports on the bank’s role in the spending and disbursement of the funds, as well as specific projects on which the funds have been spent, among others.
Earlier, the World Bank had approved the sum of $500million to Nigeria to boost access to electricity and improve the performance of electricity distribution in Nigeria.
The bank, in a statement issued, last Friday, titled, ‘Nigeria to Improve Electricity Access and Services to Citizens,’ said financial support would be provided to private distribution companies only on achievement of results in terms of access connections, improved financial management and network expansion.
The statement said, “85 million Nigerians don’t have access to grid electricity. This represents 43% per cent of the country’s population and makes Nigeria the country with the largest energy access deficit in the world.
“The lack of reliable power is a significant constraint for citizens and businesses, resulting on annual economic losses estimated at $26.2billion (¦ 10.1trillion) which is equivalent to about two per cent of GDP.
According to the 2020 World Bank Doing Business report, “Nigeria ranks 171 out of 190 countries in getting electricity and electricity access is seen as one of the major constraints for the private sector.”
The statement quoted World Bank Country Director, Shubham Chaudhuri, as saying, “Improving access and reliability of power is key to reduce poverty and unlocking economic growth in the aftermath of the global Covid-19 pandemic.
“The operation will help improve the financial viability of the DISCOs and increase revenues for the whole Nigerian power sector, which is critical to save scarce fiscal resources and create jobs by increasing the productivity of private and public enterprises.
“The Nigeria Distribution Sector Recovery Program (DISREP) will help improve service quality, as well as, the financial and technical performance of distribution companies by providing financing based on performance and reduction of losses. This project complements the support provided under the Power Sector Recovery Operation (PSRO) approved in June, 2020.
“Specifically, it will ensure that distribution companies make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid. It will also help strengthen the financial and technical management of DISCOs to improve the transparency and accountability of the distribution sector.”
According to the World Bank task team leader for the project, Nataliya Kulichenko, “The program will only be eligible to those DISCOs that transparently declare their performance reports to public with the actual flow of funds based on strict verification of achieved performance targets by an independent third party. The program would also make meters available at affordable prices to all consumers in Nigeria, a long pending demand of Nigerians.”
The statement added that “the program will reduce the CO2 emissions of the Nigerian power sector by reducing technical losses, increasing energy efficiency, replacing diesel and biomass with grid-electricity, and investing more in on- and off-grid renewable energy. DISREP supports the development of regulatory guidance on climate-resilient infrastructure and facilitates the inclusion of climate risks in decision making.”