NEWS
₦121.67trn Debt: SERAP Alleges World Bank Is Culpable
The Socio-Economic Rights and Accountability Project (SERAP) is of the view that the World Bank is culpable for the staggering $91.46 billion of public debts weighing Nigeria down, in addition to its misappropriation.
To this end, the SERAP has sent a complaint to the World Bank Inspection Panel demanding a thorough probe of the “allegations of corruption in the spending of the loans and other funding facilities obtained by the Federal Government and Nigeria’s 36 state governors and to review the implementation of all Bank-funded projects by successive governments since 1999.”
The SERAP urged the Inspection Panel “to determine the extent to which Bank Management has followed or is following the World Bank’ s operational policies and procedures applicable to the design, appraisal and implementation of all Bank-financed projects in Nigeria.”
The SERAP also urged the Panel “to determine the effect of any failure by the Bank Management to effectively implement its operational policies and procedures in all Bank-funded projects in several states on the social and economic rights and well-being of millions of socially and economically vulnerable Nigerians.”
The SERAP’s complaint followed the Debt Management Office (DMO)’s report last week, that Nigeria’s total public debt stock, including external and domestic debts, increased by ₦24.33 trillion in three months alone, from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46 billion) as of March 31, 2024.
The SERAP’s averments were detailed in a letter dated 22 June 2024 and signed by SERAP deputy director Kolawole Oluwadare.
It stated, “The World Bank has over the years reportedly approved 197 projects for Nigeria, totalling over $36 billion in loans and other funding facilities [that is, $36,360,415,968.81], with little or no impact on Nigerians living in poverty.”
The SERAP said, “Nigerians are rarely informed and meaningfully and effectively consulted about several of these loans, facilities and Bank-funded projects. Nigerians continue to be denied the benefits of the loans and facilities and access to basic public goods and services.”
According to the SERAP, “Despite several loans and other funding facilities provided by the World Bank over many years, millions of socially and economically vulnerable Nigerians in several states and communities continue to lack access to regular electricity supply and have denied the benefit of renewable energy solutions.”
The complaint, addressed to the Chair of the Panel, read in part, “A recent report by the National Bureau of Statistics (NBS) revealed that over 133 million Nigerians are living in poverty, the majority of them women and children. We would therefore be grateful if the recommended measures are taken to hold the World Bank to account.
“The apparent failure by Bank Management to diligently follow the World Bank’s operational policies and procedures in Bank-funded projects have resulted in the alleged mismanagement of the loans and facilities and exposed millions of Nigerians to extreme poverty.
“We are concerned about the negative impact of the lack of transparency and accountability in the spending of loans and facilities obtained by the Federal Government and Nigeria’s 36 state governors on the social and economic well-being of millions of Nigerians and the enjoyment of their human rights.
“We are concerned that several Nigeria’s 36 states and the FCT reportedly owe civil servants’ salaries and pensions. Several states are borrowing to pay salaries. Millions of Nigerians resident in these states and the FCT continue to be denied access to basic public goods and services.
“The Federal Government and several states are also reportedly spending public funds which may include the loans and facilities obtained from the World Bank to fund unnecessary travels, buy exotic and bulletproof cars and generally fund the lavish lifestyles of politicians.
“The ₦121.67 trillion ($91.46 billion) debt represents external and domestic loans obtained by the Federal Government, the 36 state governments and the Federal Capital Territory (FCT).
“The World Bank reportedly currently has a portfolio of about $8.5 billion spread across the country. The Bank has also approved several loans and other funding facilities to the country’s 36 states including the recent $750 million credit line meant to the states to carry out reforms to attract investment and create jobs.
“The Bank recently approved a $2.25 billion loan for Nigeria ‘to shore up revenue and support economic reforms and address cost-of-living crisis in the country.’
“In September 2002, the Bank approved $129.00 million for a project titled ‘Universal Basic Education Project: P071494’ ‘to increase the capacity of states and local governments to manage and implement the UBE program effectively and efficiently.’
“In May, 2007 the Bank approved $180.00 million for a project titled ‘Nigeria Federal Science & Technical Education at Post-Basic Levels (STEPB): P074132’, ‘to produce more and better qualified science and technology (S&T) graduates’.”
In May 2000, the Bank approved $55.00 million for a project titled ‘Second Primary Education Project: P066571’, ‘to support the implementation of Universal Basic Education.’
“In December 2000, the Bank approved $86.75 million for a project titled ‘Community Based Poverty Reduction Project: P069086’, to ‘improve access of the poor to social and economic infrastructure and increase the availability and management of development resources at the community level.’
“In March 2011, the Bank approved $160.00 million for a project titled ‘Nigeria – Growth & Employment: P069086’, ‘to increase growth and employment in Nigeria.’
“In July 2020, the World Bank approved $500.00 million for a project titled ‘Adolescent Girls Initiative for Learning and Empowerment: P170664’, ‘to improve secondary education opportunities among girls in targeted areas in participating states.’
“The Bank also approved $500.00 million in June 2023 for a project titled ‘Nigeria for Women Program Scale Up Project: P179447’, ‘to promote women’s economic empowerment and enhance the economic opportunities of unbanked women.’
“In June 2020, the Bank approved $750.00 million for a project titled ‘Power Sector Recovery Performance Based Operation: P164001’, ‘to improve the reliability of electricity supply, achieve financial and fiscal sustainability, and enhance accountability.’
“In September 2022, the Bank approved $750.00 million for a project titled ‘State Action on Business Enabling Reforms (SABER) Program: P177442’, ‘to improve the efficiency and transparency of government-to-business services in participating states.’
“Many years of allegations of corruption and mismanagement of public funds including the spending of the loans and facilities obtained by the Federal Government and Nigeria’s 36 states have contributed to widespread poverty, underdevelopment and lack of access to public goods and services in the country.
“The allegations of corruption in the loans and facilities provided by the Bank calls into question the rigor with which the Bank undertook due diligence in assessing the social, economic and environmental risks of its financed-projects in the country.
“The apparent inadequacy of safeguards and accountability mechanisms for the loans, facilities and project implementation has resulted in the alleged diversion of public funds for other purposes other than those agreed with the Bank.
“The Bank has apparently failed and/or neglected to effectively apply its various operational policies and procedures to ensure the transparent and accountable spending of its 197 loans and facilities across several states in the country.
“SERAP has over the years sent several complaints to the World Bank about the lack of transparency and accountability in the loans and facilities and the projects financed by the World Bank loans but the Bank Management has consistently failed and/or neglected to take any concrete action on the complaints.
SERAP believes that we have exhausted attempts to resolve our complaints through several communications with Bank Management.
“The harms suffered by millions of socially and economically vulnerable Nigerians as a result of the alleged corruption in the spending of loans and funding facilities provided by the Bank amount to violations of human rights guaranteed under the human rights treaties to which Nigeria is a state party.
“As a UN specialized agency, the World Bank also has an obligation to promote transparency and accountability in the management of public resources and effective implementation of the World Bank and to observe the provisions of the UN Charter, as well as the UN Convention against Corruption to which Nigeria is a state party.
“The World Bank has obligations under international anticorruption and human rights law, including a responsibility to promote transparency and accountability in the management of public funds, prevent mismanagement or diversion of public funds, and redress any abuse of public trust that they may have contributed to.
“The World Bank’s board of executive directors also has an obligation to ensure that the policies and decisions of the Bank are consistent with their own statutes and governments’ transparency and accountability obligations.
“The UN ‘Protect, Respect and Remedy’ framework for business and human rights and the “Guiding Principles on Business and Human Rights among others impose corporate responsibility on the World Bank to assess potential risks of mismanagement or diversion of their investments and to seek to prevent or mitigate those risks.
“Under Article 1 of the World Bank Articles of Agreement, the stated purposes of the Bank include ‘to assist in the reconstruction and development’. The Bank is also to ‘be guided in all its decisions by the purposes.’
“Under Article 3 section 4(vii) of the World Bank Articles of Agreement, loans made or guaranteed by the Bank ‘shall be for the purpose of specific projects of reconstruction or development.’ Also, under Article 3 section 5(b), the Bank ‘shall make arrangements to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted’.”
The Organised Labour has decried the Federal Executive Council’s (FEC) delay tactics on the memorandum on the report of the Tripartite Committee on New National Minimum Wage.
It was gathered the FEC had on Tuesday stepped-down action on the memo.
In a swift reaction, the Head, Public Relations at the Nigeria Labour Congress (NLC), Benson Upah, raised a strong voice against the failure of FEC to consider the memo at Tuesday’s meeting.
Upah insisted that the stepping down the tripartite committee report “creates room for injurious speculations.”
On his part, the Minister of Information and National Orientation, Mohammed Idris, told media men after the FEC meeting that they stepped down the memorandum on the new minimum wage to allow for more consultations between President Bola Tinubu, state governors, local government authorities and the private sector.
According to Idris, the FEC deferred acting on the memo on the ground that the Federal Government is not the sole stakeholder on the national minimum wage issue.
Recall that the Federal Government, the Organised Private Sector (OPS) and Organised Labour had held several meetings on the new minimum wage with the NLC and Trade Union Congress (TUC) leaders insisting on N250,000.
The Federal Government, states and the OPS, had, however, made a counter-offer of N62,000.
The interesting twist in the matter appears to be the state governors, under the banner of the Nigerian Governors Forum (NGF) having declared that any minimum wage higher than N60,000 was not sustainable.
While that was going on, some voices of reason including reputable economists threw a figure of N100,000 into the conversation.
However, the Assistant General Secretary of the NLC, Chris Onyeka, had made it clear that Labour would accept neither the Federal Government’s offer of N62,000 nor the N100,000 thrown up by independent voices.
Labour’s position was reinforced by the words of its President, Joe Ajaero, that the unionists were waiting on the President to consider Labour’s proposal.
It does appear that the Federal Government was aiming to politicize the issue of minimum wage by taking the campaign to even religious bodies.
The Minister for Information, had told the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, that the government was focused on a realistic wage system with a view to safeguarding employment and guarding against mass retrenchment.
According to Idris, the N250,000 minimum wage proposal could undermine the economy, lead to mass retrenchment of workers and jeopardise the welfare of Nigerians.
The concerns in certain quarters note that in his Democracy Day broadcast, President Tinubu assured that he would forward a bill on the new minimum wage to the National Assembly soon.
He told governors and members of the National Assembly on the occasion of the nation’s 25th Democracy Day anniversary at the State House that his administration would pay whatever it could afford as the new minimum wage.
President Tinubu’s stand had drawn the ire of Labour, which insisted that the political office-holders should also be paid the minimum wage.
The Senate spokesman, Yemi Adaramodu, said, “The President will likely send the minimum wage bill after the Sallah break.”
Recall that the Senate had adjourned plenary for the Sallah break and is due to resume on July 2.
But the then acting President of the NLC, Prince Adewale Adeyanju, said Labour would not accept the N62,000 proposed by the government and OPS, advising the President to pay workers a living wage and ignore those he described as sycophants.
He also refuted insinuations that a consensus had been reached between the Federal Government and Labour on the new wage.
On Monday, the NLC President, Ajaero, mentioned that Organised Labour expected Tinubu to reach out to the members of the tripartite committee to harmonise the figure, given the stalemate at the end of the committee meeting.
Addressing State House correspondents after Tuesday’s FEC meeting, the information minister, Idris, explained that the President needed to interact with other wage-paying entities to factor their contributions and circumstances into the executive bill on minimum wage that would be passed on to the National Assembly for passage into law.
He stated, “I want to inform Nigerians here that the Federal Executive Council deliberated on that (minimum wage) and the decision is that because the new national minimum wage is not just that of the Federal Government, it is an issue that involves the Federal Government, the state governments, local governments, and the organised private sector and of course, including the organised labour.
“That memo was stepped down to enable Mr President to consult further, especially with the state governors and the organised private sector, before he makes a presentation to the National Assembly before an executive bill is presented to the National Assembly.
“So I want to state that on the new national minimum wage, Mr President is going to consult further so that he can have an informed position because the new national minimum wage, as I said, is not just an issue of the Federal Government.”
He said the President studied the report and will “consult wider before a final submission is made to the National Assembly.”
Reacting to the FEC’s decision, the NLC spokesman, Upah, declared that stepping down the minimum wage memo did not bode well for workers.
When asked if the decision to postpone the consideration of the minimum wage memo was a waste of time, he responded, “Definitely, stepping down the minimum wage memo does not bode well with or for us. It creates room for injurious speculations.”
The Deputy National President of the TUC, Tommy Etim, said he expected the President to address the ‘grey areas’ ahead of the transmission of the executive bill on the new minimum wage to the National Assembly.
“I want to believe that the government is very conscious of the grey areas which organised labour has pointed at, especially the amount to be accepted by every party involved, the frequency of review and criteria for the review and application.
“These, amongst others, are the burning issues which to the best of my knowledge need to be addressed before its consideration by FEC to the National Assembly,’’ he noted.
The Sokoto State House of Assembly has successfully passed the Sokoto Emirate Council Amendment Bill through its first and subsequent readings, aimed at amending the Sokoto Emirate Council’s powers, potentially altering the traditional governance structure in the region.
If enacted, the amendment would restrict the Sultan of Sokoto, Alhaji Sa’ad Abubakar III, from unilaterally appointing kingmakers and district heads without prior government approval.
This legislative move comes amid heightened tensions and public scrutiny, sparked by concerns raised by the Muslim Rights Concern (MURIC).
The organization’s Executive Director, Prof. Isiaq Akintola, voiced serious apprehension over an alleged plan by Sokoto State Governor Ahmed Aliyu to remove the Sultan of Sokoto from his position.
Recall that in a statement issued on Monday, Prof. Isiaq Akintola, the Executive Director of the Muslim Rights Concern (MURIC), voiced deep concern over the potential implications of recent legislative actions in Sokoto State.
His remarks come amidst growing controversy and tension, particularly in the aftermath of the deposition of several monarchs in neighboring Kano State.
He underscored that the Sultan’s position carries not only cultural but also religious significance, serving as a spiritual leader for Muslims across Nigeria, not just in Sokoto.
Governor Aliyu had previously deposed 15 traditional rulers over various violations.
In a separate development, Vice President Kashim Shettima and the Peoples Democratic Party issued a warning on Monday against what they perceive as a potential move by the Sokoto State government to oust Alhaji Sa’ad Abubakar III, the Sultan of Sokoto.
However, the state government has refuted any intentions of deposing the monarch, dismissing the allegation as untrue.
According to Sambo Danchadi, the state Commissioner for Information, the existing law governing the appointment of traditional rulers in Sokoto State remains unchanged.
The Federal Executive Council has approved N1.99 billion for the procurement of 33 Compressed Natural Gas (CNG) vehicles to bolster the operational capabilities of the National Drug Law Enforcement Agency (NDLEA).
The decision was made during Tuesday’s council meeting, presided over by President Bola Tinubu in Abuja.
Following the meeting, Attorney-General and Minister of Justice, Lateef Fagbemi, briefed State House correspondents, revealing that the council also approved $1.442 billion for the purchase of firearms and ammunition to support the NDLEA’s efforts in combatting drug trafficking.
Additionally, Attorney-General and Minister of Justice, Lateef Fagbemi, announced that the Federal Executive Council has sanctioned N985 million for the acquisition of body scanners to be deployed at all of the nation’s international airports.
He said, “We submitted three items to the council on NDLEA. FEC approved the procurement of 33 Mikano motor vehicles CNG to boost the operation of NDLEA.
“Approval for NDLEA for procurement of firearms, ammunition, and counter-narcotics for the sum of $1.442 billion.The procurement of two units of body scanners for use both at Abuja and International Airports at N985 million.”
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