N121.67trn Debt: Hold World Bank Accountable, SERAP Tells Panel 

The Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank Inspection Panel to hold the global bank accountable for the huge debt incurred by Nigeria under successive administrations.

The organisation also urged the panel “to probe allegations of corruption in the spending of the loans and other funding facilities obtained by the Federal Government and Nigeria’s 36 state governors and to review the implementation of all Bank-funded projects by successive governments since 1999.”

SERAP wants the Inspection Panel “to determine the extent to which Bank Management has followed or is following the World Bank’ s operational policies and procedures applicable to the design, appraisal and implementation of all Bank-financed projects in Nigeria.”

It also urged the Panel “to determine the effect of any failure by the Bank Management to effectively implement its operational policies and procedures in all Bank-funded projects in several states on the social and economic rights and well-being of millions of socially and economically vulnerable Nigerians.”

SERAP’s complaint followed the Debt Management Office (DMO)’s report last week, that Nigeria’s total public debt stock, including external and domestic debts, increased by ?24.33 trillion in three months alone, from ?97.34 trillion ($108.23 billion) in December 2023 to ?121.67 trillion ($91.46 billion) as of March 31, 2024.

In the letter dated 22 June 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “The World Bank has over the years reportedly approved 197 projects for Nigeria, totalling over $36 billion in loans and other funding facilities [that is, $36,360,415,968.81], with little or no impact on Nigerians living in poverty.”

SERAP said, “Nigerians are rarely informed and meaningfully and effectively consulted about several of these loans, facilities and Bank-funded projects. Nigerians continue to be denied the benefits of the loans and facilities and access to basic public goods and services.”

According to SERAP, “Despite several loans and other funding facilities provided by the World Bank over many years, millions of socially and economically vulnerable Nigerians in several states and communities continue to lack access to regular electricity supply and have denied the benefit of renewable energy solutions.”

The complaint, addressed to the Chair of the Panel, read in part: “A recent report by the National Bureau of Statistics (NBS) revealed that over 133 million Nigerians are living in poverty, the majority of them women and children. We would therefore be grateful if the recommended measures are taken to hold the World Bank to account.

“The apparent failure by Bank Management to diligently follow the World Bank’s operational policies and procedures in Bank-funded projects have resulted in the alleged mismanagement of the loans and facilities and exposed millions of Nigerians to extreme poverty.

“We are concerned about the negative impact of the lack of transparency and accountability in the spending of loans and facilities obtained by the Federal Government and Nigeria’s 36 state governors on the social and economic well-being of millions of Nigerians and the enjoyment of their human rights.

“We are concerned that several of Nigeria’s 36 states and the FCT reportedly owe civil servants’ salaries and pensions. Several states are borrowing to pay salaries. Millions of Nigerians resident in these states and the FCT continue to be denied access to basic public goods and services.

“The Federal Government and several states are also reportedly spending public funds which may include the loans and facilities obtained from the World Bank to fund unnecessary travels, buy exotic and bulletproof cars and generally fund the lavish lifestyles of politicians.

‘The ?121.67 trillion ($91.46 billion) debt represents external and domestic loans obtained by the Federal Government, the 36 state governments and the Federal Capital Territory (FCT). .

“The World Bank reportedly currently has a portfolio of about $8.5 billion spread across the country. The Bank has also approved several loans and other funding facilities to the country’s 36 states including the recent $750 million credit line meant to the states to carry out reforms to attract investment and create jobs.

“The Bank recently approved a $2.25 billion loan for Nigeria ‘to shore up revenue and support economic reforms and address cost-of-living crisis in the country.”

SERAP listed several loan approvals made by the World Bank for Nigeria since 1999.

It said, “Many years of allegations of corruption and mismanagement of public funds including the spending of the loans and facilities obtained by the Federal Government and Nigeria’s 36 states have contributed to widespread poverty, underdevelopment and lack of access to public goods and services in the country.

“The allegations of corruption in the loans and facilities provided by the Bank calls into question the rigor with which the Bank undertook due diligence in assessing the social, economic and environmental risks of its financed-projects in the country.

“The apparent inadequacy of safeguards and accountability mechanisms for the loans, facilities and project implementation has resulted in the alleged diversion of public funds for other purposes other than those agreed with the Bank.

“The Bank has apparently failed and/or neglected to effectively apply its various operational policies and procedures to ensure the transparent and accountable spending of its 197 loans and facilities across several states in the country.

“SERAP has over the years sent several complaints to the World Bank about the lack of transparency and accountability in the loans and facilities and the projects financed by the World Bank loans but the Bank Management has consistently failed and/or neglected to take any concrete action on the complaints.”

SERAP said it has exhausted attempts to resolve its complaints through several communications with Bank Management.