The Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank to suspend issuing loans to Nigeria’s 36 states.

The organisation alleged that the states  mismanage public funds, including loans obtained from the multilateral institution.

SERAP, in a letter dated 25 November 2023, also called on the World Bank President, Ajay Banga, “to promptly, transparently and effectively conduct an investigation into the spending of loans and other facilities by the country’s 36 state governors and to suspend any loans and funding if there is relevant admissible evidence of mismanagement or diversion of public funds by any of the states.”

A statement, Sunday, by SERAP deputy director Kolawole Oluwadare, noted that the group also urged the institution to suspend further applications for loans and any other funding to the 36 states until these states can satisfactorily explain details of spending of loans and other facilities obtained from the Bank and its partners.

The statement added: “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.

“We are concerned that there is a significant risk of mismanagement or diversion of funds linked to the Bank’s investments in many of the country’s 36 states. It is neither appropriate nor responsible lending to give loans to these states only for the loans to be misspent.”

SERAP, which cited data from Nigeria’s Debt Management Office (DMO), noted that the total public debt portfolio for Nigeria’s 36 states and the Federal Capital Territory is N9.17 trillion, while the Federal Government’s total public debt portfolio is N78.2 trillion.

It therefore wants the World Bank’s chief to demand expressed commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their states.