Disturbed by the high level of fiscal indiscipline that has culminated to abysmal debt management, the Socio-Economic Rights and Accountability Project (SERAP), has implored the World Bank “to suspend any disbursement of the $800m loan to the Federal Government and to request the incoming administration to provide satisfactory explanations for the loan.”
SERAP which queries the rationale behind the request of the loan at the twilight of the regime of the President, Major General Muhammadu Buhari (retd.), enjoined the World Bank President, Mr David Malpass, “to reopen discussion” to clarify the basis for the loan request.
It was widely reported in the media that the Minister of Finance, Budget and National Planning had, last week, revealed to State House correspondents that the Federal Government had secured $800m loan from the World Bank to provide post-petroleum subsidy palliatives for over 50 million Nigerians ahead of the proposed June 2023 removal of subsidy.
A letter dated May 13, 2023, and signed by SERAP Deputy Director, Kolawole Oluwadare, the group 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,” adding that, “Suspending any disbursement of the loan to the government would reduce the risks and vulnerability to corruption and mismanagement.”
SERAP said it was concerned that the Buhari-led FG was seeking to spend the loan “when it has barely two weeks to leave office and when the projected objectives and intended purposes for which the loan is reportedly approved, and will be disbursed remain unclear.
“The government has not satisfactorily explained or justified the need for the loan at this time, especially given the lack of clarity on its use and the crippling debt burden, and the disproportionately negative impact of these retrogressive measures on poor Nigerians.
SERAP urged the World Bank not to “close its eyes to these important transparency, accountability, and human rights issues,” noting that the National Economic Council, on April 27, reportedly suspended the planned removal of subsidy on petroleum products by the end of the Buhari’s regime.
