The Socio-Economic Rights and Accountability Project (SERAP) has called on the World Bank to suspend loans to Nigeria's 36 states, citing allegations of widespread mismanagement of public funds, including loans from the institution.
In a letter dated November 25, 2023, SERAP urged World Bank President Ajay Banga to conduct a thorough investigation into the spending of over $8.5 billion in loans and other facilities by the state governors. The organization expressed concern about the risk of mismanagement or diversion of funds linked to the Bank's investments in many states.
With data from Nigeria's Debt Management Office indicating a total public debt portfolio of N9.17 trillion for the 36 states and the Federal Capital Territory, SERAP argued that lending to states facing credible allegations of fund mismanagement is neither appropriate nor responsible.
The group further urged the World Bank to demand a commitment from Nigeria's governors to address these allegations promptly. The call reflects a growing awareness of the need for accountability in financial management across Nigeria's states.
