The Socio-Economic Rights and Accountability Project (SERAP) has raised concerns over Nigeria’s mounting debt crisis, citing data from Nigeria’s Debt Management Office (DMO), which has revealed that the total public debt portfolio for the country’s 36 states and the Federal Capital Territory (FCT) stands at a staggering N9.17 trillion. Also revealed is that of the Federal Government, which is even more alarming at N78.2 trillion.
In light of these figures, SERAP has called on World Bank President Ajay Banga to suspend loan applications from Nigeria’s 36 states.
The call comes amid allegations of mismanagement and diversion of public funds.
In a letter signed by its Deputy Director, Kolawole Oluwadare, SERAP urged the World Bank to conduct a transparent and effective investigation into the spending of loans and other facilities by the country’s 36 state governors.
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The organisation also called for the suspension of any loan or funding if there is relevant admissible evidence of mismanagement or diversion of public funds by any of the states.
In a statement released on Sunday, Kolawole expressed concern over the significant risk of mismanagement or diversion of funds linked to the bank’s investments in many of the country’s 36 states. He stated, “The World Bank and its partners cannot continue to give loans and other funding to these states where there are credible allegations of mismanagement or diversion of public funds.”
He further added, “It is neither appropriate nor responsible lending to give loans to these states only for the loans to be misspent.”