The Socio-Economic Rights and Accountability Project has called upon the World Bank to suspend loans to Nigeria’s 36 states due to widespread allegations of public funds mismanagement.

SERAP’s concerns stem from Nigeria’s escalating public debt, which has reached a staggering N87.38 trillion as of Q2 2023. This translates to a debt burden of N396,376.19 per Nigerian citizen.

In a letter to the World Bank, SERAP urged the global lender to investigate the spending practices of state governors and suspend loans if evidence of mismanagement is uncovered.

The group also advocated for a freeze on new loan applications until states can provide transparent accounts of their utilization of previous funds.

SERAP’s Deputy Director, Kolawole Oluwadare, emphasized the need for accountability and responsible lending.

“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 stated.

SERAP’s concerns align with data from Nigeria’s Debt Management Office, which reveals that the combined public debt of the country’s 36 states and the Federal Capital Territory stands at N9.17 trillion.

In addition to suspending loans, SERAP called upon the World Bank’s chief to seek firm commitments from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds within their respective states.