‘Probe $1.5bn World Bank Loan To States, $3bn Chinese Loan,’ SERAP Urges Tinubu

• SERAP urges President Tinubu to investigate potential mismanagement and corruption related to the $1.5 billion World Bank loan and $3 billion Chinese loan
• The organization stresses the importance of ensuring accountability in managing these loans to build trust in democratic institutions and strengthen the rule of law

The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to instruct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), along with relevant anti-corruption agencies, to conduct a thorough investigation into the use of a $1.5 billion World Bank loan and a $3 billion Chinese loan.

SERAP is concerned about potential mismanagement and corruption related to these loans. They argue that if there is sufficient evidence, any suspected perpetrators should face prosecution, and any proceeds from corruption should be recovered.

In an open letter dated August 10, 2024, signed by SERAP Deputy Director Kolawole Oluwadare, the organization stressed that ensuring accountability in managing these loans is crucial for building trust in democratic institutions and strengthening the rule of law.

SERAP highlighted that impunity for corruption continues as long as high-ranking officials evade punishment. They stressed that investigating and prosecuting allegations of corruption in using these loans aligns with Nigeria’s constitutional and international anti-corruption obligations.

The letter pointed out that governors enjoy immunity from arrest and prosecution but are not immune from investigation. Such investigations could potentially lead to impeachment proceedings against them.

SERAP expressed concern over the lack of transparency and accountability in managing these loans. They urged the government to address these issues within seven days of the letter’s receipt or publication, warning that they would consider legal actions to compel compliance if necessary.

The $1.5 billion World Bank loan, approved on December 15, 2020, was intended for social protection and strengthening state-level COVID-19 responses. It includes the Nigeria CARES program, which aims to increase access to social transfers and basic services, and the SFTAS program, which aims to enhance public resource management and accountability.

The $3 billion Chinese loan, according to the Debt Management Office, is for 11 projects, including railway modernization and airport terminal expansions.

SERAP’s letter concludes by underscoring the need for justice and accountability to address the mismanagement of these loans, which impacts already impoverished citizens and undermines their ability to meet basic needs.