The Socio-Economic Rights and Accountability Project, (SERAP), 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 is inviting 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.
The Federal Government stated its intention to use the $800 million loan as “part of its subsidy palliatives measures” in an announcement made in April.
Also, last week, President Buhari requested the Senate’s 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.
In the letter, dated 13 May 2023 and signed by its Deputy Director, Kolawole Oluwadare, the organisation said: “The 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”.
SERAP said, “Suspending any disbursement of the loan to the government would reduce the risks and vulnerability to corruption and mismanagement.”
It further stated that, “We 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.”
“The 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”.
