Posted by The World Bank has been asked in writing by the Socio-Economic Rights and Accountability Project, or SERAP, to halt financing to the 36 states in the nation.
SERAP encouraged Mr. Ajay Banga, President of the World Bank, in a letter to “conduct investigation into spending of loans and other facilities by the 36 state governors in a timely, transparent, and effective manner.”
According to SERAP, if there is pertinent, admissible proof of mismanagement or the diversion of public funds by any state, the World Bank should stop providing loans and funding.
The letter, dated November 25, 2023, bearing the signature of Kolawole Oluwadare, the deputy director of SERAP, revealed this.
According to SERAP, the Bank need to “halt additional loan and funding requests from the country’s states until they can provide a satisfactory explanation of how they have used loans and other facilities from the Bank and its partners.”
According to the organization, a large number of the 36 states were misappropriating public monies, including grants from the federal government and loans from the Bank and its partners.
According to the statement, the organization expressed concern about the substantial risk of mismanagement or money diversion associated with the Bank’s investments in many of the 36 states in the nation.
“By immediately suspending any pending loans and other funding to them until the allegations of mismanagement or diversion of public funds are investigated, the World Bank and its partners need to make it clear to Nigeria’s state governors that it would not tolerate any mismanagement or diversion of public funds.
According to reports, a number of state governors are also using public monies—which could come from the Federal Government, the Bank, and its partners—to pay for pointless trips, purchase expensive and bulletproof vehicles, and generally support the opulent lifestyles of politicians.
Parts of the statement stated, “In the first nine months of 2023, the country’s 36 states have reportedly spent N1.71tn on recurrent expenditures, including allowances, foreign trips, office stationery, and aircraft maintenance.”
Should the World Bank not succeed or not carry out the suggestions in its letter, SERAP vowed to explore the possibility of going to court.