The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to reject the recently approved $1.08 billion World Bank loan.
In a statement, the organization called on the president to initiate an investigation into allegations that over N233 billion in public funds have gone missing, been diverted, or are unaccounted for by the Nigerian Bulk Electricity Trading Plc (NBET) and several Ministries, Departments, and Agencies (MDAs).
In a letter dated April 5, 2025, SERAP emphasized that the loan was unnecessary and not in the public interest, particularly given Nigeria’s mounting debt crisis and the widespread financial mismanagement within government institutions.
SERAP argued that any individuals found responsible should face prosecution, and the missing funds should be recovered and returned to the national treasury. The organization also recommended using the recovered N233 billion to reduce Nigeria’s 2025 budget deficit and ease the growing debt burden.
The World Bank had approved the loan to improve education quality, enhance community resilience, and tackle malnutrition among underserved populations. However, SERAP contended that the federal government should not pursue external loans until it has fully recovered the unaccounted funds, in line with both constitutional and international obligations.
SERAP expressed grave concern over Nigeria’s worsening debt situation, warning that both federal and state governments are at increasing risk of debt distress. According to the UN Independent Expert on foreign debt and human rights, Nigeria’s debt service exceeds 20% of tax revenues, exacerbating poverty and social unrest.
The missing funds are highlighted in the 2021 audited report from the Office of the Auditor-General of the Federation, released in November 2024. The report claims that NBET paid over N96 billion for services not provided and goods not delivered, while an additional N111 billion remains unaccounted for. It also found that NBET failed to recover over N2.8 trillion in revenues.
SERAP warned that if immediate steps are not taken to recover the missing funds and hold the responsible parties accountable, it would pursue legal action to compel government action. The organization reminded the Tinubu administration of its constitutional duty to combat corruption and safeguard public welfare.
Referencing both Nigeria’s Constitution and international anti-corruption agreements, SERAP stressed that investigating and prosecuting those involved in the mismanagement would strengthen accountability, restore public trust, and prevent future misuse of public funds.
