87 trillion naira debt: SERAP asks World Bank to suspend loans to 36 Nigerian states
The Socio-Economic Rights and Responsibilities Project, SERAP, has written to the World Bank asking it to suspend lending to 36 states in the country.
In a letter to World Bank President Ajay Banga, SERAP urged him to “promptly, transparently and effectively conduct an investigation into the disbursement of loans and other facilities by the 36 state governors”.
SERAP said the World Bank should suspend all loans and funding if there is acceptable evidence of mismanagement or misappropriation of public funds by any country.
This was disclosed in a letter dated November 25, 2023 signed by SERAP Deputy Director Kolawole Oluwadare.
SERAP said the World Bank should “suspend further applications for loans and other funding to states until they can provide satisfactory explanations for disbursements of loans and other facilities obtained from the Bank and its partners. ” he said.
The group claims many of the 36 states have mismanaged public funds, including loans from the World Bank and its partners and allocations from the federal government.
The organization is concerned that there is a significant risk of mismanagement or misappropriation of funds associated with the Bank’s investments in many of the country’s 36 states, the statement said.
“The World Bank and its partners are encouraging Nigeria’s state governors to defund public funds by immediately suspending pending loans and other funding pending investigations into allegations of mismanagement or misappropriation of public funds. We need to make it clear that we will not tolerate mismanagement or misappropriation.”
“Also, several state governors have used the World Bank and their It is reportedly spending public funds, including funds received from partners and allocations from the federal government.
“The 36 states in the country are reported to have spent N1.71 trillion on recurrent expenditures such as allowances, international travel, office supplies and aircraft maintenance in the first nine months of 2023,” the statement read in part. It is written in.
SERAP threatened to consider the option of pursuing legal action if the World Bank did not or would not implement the recommendations contained in the letter.
Source: dailypost.ng