The World Bank President has been requested by the Socio-Economic Rights and Accountability Project (SERAP) to halt any payments on the $800 million loan to the federal government and to ask the next administration to offer convincing justifications for the loan.
SERAP encouraged the World Bank and the lender’s president, Mr. David Malpass “to reopen discussions on the reportedly approved $800 million loan with the incoming administration to clarify the details on the rationale and use of the loan because the term of office of the government of President Muhammadu Buhari ends in May 2023.”
The federal government stated in April that it intended to use the $800 million loan to fund subsidised palliatives. Additionally, President Buhari asked the Senate last week to approve the World Bank loan. It’s not apparent from the request to the Senate if a new loan or the one disclosed in April is being sought.
The organization stated the following in a letter dated May 13, 2023, and signed by Mr. Kolawole Oluwadare, the deputy director of SERAP: “The World Bank should comply with its own Articles of Agreement in disbursing any loans. The Bank should not sacrifice international standards in a rush to disburse the $800 million 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.”
The group said, “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.”
“The World Bank cannot close its eyes to these important transparency, accountability and human rights issues.”
“The National Economic Council (NEC) on April 27 reportedly suspended the planned removal of subsidy on petroleum products by the end of the Buhari administration.”
“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.”
