SERAP<\/a> invites Mr. Malpass to renew the conversation with the incoming administration on the allegedly approved $800 million loan in order to explain the specifics of its justification and intended use.<\/p>\nThe Federal Government stated its intention to use the $800 million loan as “part of its subsidy palliatives measures” in an announcement made in April.<\/p>\n
Also, last week, President Buhari requested the Senate\u2019s approval for the World Bank loan. It is unclear whether the request to the Senate is for a fresh loan or the one announced in April.<\/p>\n
In the letter dated 13 May 2023 and signed by SERAP deputy director Kolawole Oluwadare, the organization said: \u201cThe World Bank should comply with its own Articles of Agreement in disbursing any loans. The Bank should not sacrifice international standards in the rush to disburse the $800m loan to the government.\u201d<\/p>\n
SERAP said, \u201cSuspending any disbursement of the loan to the government would reduce the risks and vulnerability to corruption and mismanagement.\u201d<\/p>\n
The letter, read in part, \u201cSERAP is concerned that the government is seeking to spend the loan when it has barely two weeks to leave office and when the project objectives and intended purposes for which the loan is reportedly approved and will be disbursed remain unclear.\u201d<\/p>\n
\u201cThe government has not satisfactorily explained or justified the need for the loan at this time, especially given the lack of clarity on its use and the crippling debt burden, and the disproportionately negative impact of these retrogressive measures on poor Nigerians.\u201d<\/p>\n
\u201cThe World Bank cannot close its eyes to this important transparency, accountability and human rights issues.\u201d<\/p>\n
\u201cThe National Economic Council on April 27 reportedly suspended the planned removal of subsidy on petroleum products by the end of the Buhari administration.\u201d<\/p>\n
\u201cWe would consider the option of pursuing legal action should the World Bank refuse to suspend the disbursement of the loan to the Federal Government and to implement the other recommendations contained in this letter, and we may join the government in any such suit.\u201d<\/p>\n
\u201cThe crippling debt burden is a human rights issue because when the entire country is burdened by unsustainable debts, there will be little money left to ensure access of poor and vulnerable Nigerians to legally enforceable socio-economic rights.\u201d<\/p>\n
\u201cThere is also a lack of transparency and accountability in the spending of the loans so far obtained. The details of the projects on which approved loans are spent are often shrouded in secrecy.\u201d<\/p>\n
\u201cThe Bank has a responsibility to ensure that the Federal Government is transparent and accountable to Nigerians in any discussion to obtain loans, credits or grants from the bank and how it spends any approved loans, credits or grants.\u201d<\/p>\n
\u201cThe Bank\u2019s power to provide loans is coupled with a fiduciary responsibility to ensure that the spending of such funds by the government meets international standards of transparency and accountability, including those entrenched in article 5 of the UN Convention against Corruption.\u201d<\/p>\n
\u201cThe World Bank should also seek transparency and accountability commitments if the incoming government decides to use the loan to implement the National Social Safety Net Programme because the spending on the programme has been mostly shrouded in secrecy.\u201d<\/p>\n
\u201cUnder the programme, the government reportedly plans to transfer the sum of N5,000 per month to 10.2 million poor and low-income households for a period of six months.\u201d<\/p>\n
\u201cSERAP encourages you and the World Bank to in any future engagements with the incoming government insist on accessing information on the spending by the government on the National Social Safety Net Programme since 2015 and the publication of the details of such spending.\u201d<\/p>\n
\u201cUnder Article 1 of the World Bank Articles of Agreement, the stated purposes of the Bank include \u2018to assist in the reconstruction and development\u2019. The Bank is also to \u2018be guided in all its decisions by the purposes.\u2019\u201d<\/p>\n
\u201cUnder Article 3 Section 4(vii) of the World Bank Articles of Agreement, loans made or guaranteed by the Bank \u2018shall be for the purpose of specific projects of reconstruction or development.\u2019 Also, under Article 3 Section 5(b), the Bank \u2018shall make arrangements to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted.\u2019\u201d<\/p>\n
\u201cAccording to our information, the Federal Government of Nigeria recently secured a $800 million loan from the World Bank.\u201d<\/p>\n
\u201cThe government reportedly plans to spend the loan as part of its \u2018subsidy palliatives measures\u2019, and aims to target 50 million vulnerable Nigerians or 10 million households.\u201d<\/p>\n
\u201cAccording to the Debt Management Office, Nigeria\u2019s total public debt stock, including external and domestic debts, increased to N46.25 trillion or $103.11 billion in the fourth quarter of 2022.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The Socio-Economic Rights and Accountability Project has requested World Bank President David Malpass to halt all loan payments to the Federal Government totaling $800 million and to ask the incoming administration to offer convincing justifications for the loan. The term of President Muhammadu Buhari’s administration expires in May 2023, thus SERAP invites Mr. Malpass to […]<\/p>\n","protected":false},"author":43,"featured_media":266871,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"no-crop","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_override_bookmark_settings":{"override_bookmark_button":"0","override_show_bookmark_button":"0"},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2],"tags":[64153,371,1495,64155,64154,113,4522],"class_list":["post-268536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-800m-loan","tag-fg","tag-serap","tag-serap-tells-world-bank","tag-suspend-800m-loan-to-fg","tag-suspension","tag-world-bank"],"yoast_head":"\n
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