The Socio-Economic Rights and Accountability Project (SERAP) has issued a compelling call to President Bola Tinubu to turn down the recently approved $1.08 billion loan from the World Bank. In a bold move, SERAP is simultaneously urging the president to initiate a thorough investigation into alarming allegations that over N233 billion in public funds are missing or misappropriated by the Nigerian Bulk Electricity Trading Plc (NBET) and other Ministries, Departments, and Agencies (MDAs).
In a letter dated April 5, 2025, SERAP articulated that the loan is an unnecessary financial burden for Nigeria, especially in light of the country's mounting debt crisis and pervasive financial mismanagement prevalent across various government institutions. The organization emphasized that there should be a focus on recovering missing funds before seeking external loans.
SERAP insists that any individuals found culpable should face prosecution, and all misappropriated funds must be recovered and redirected into the national treasury. The group proposes that the recovered N233 billion could significantly help in mitigating the 2025 budget deficit and contribute to alleviating Nigeria's growing debt concerns.
While the World Bank sanctioned the loan with the intention of enhancing education quality, strengthening community resilience, and combating malnutrition among underserved populations, SERAP raises critical concerns. They argue that pursuing external loans without a clear strategy for recovering the unaccounted funds would be irresponsible and against both constitutional and international obligations.
The organization expressed deep alarm over Nigeria's escalating debt profile, which poses a growing risk of debt distress for both federal and state governments. Citing the UN Independent Expert on foreign debt and human rights, SERAP highlighted that Nigeria's debt service payments exceed 20% of tax revenues, exacerbating poverty and social unrest in the nation.
The missing funds, as outlined in the 2021 audited report by the Office of the Auditor-General of the Federation released in November 2024, present a troubling picture. Key findings revealed that NBET paid over N96 billion for services not rendered and in goods not supplied, with an additional N111 billion remaining unaccounted for. Moreover, NBET reportedly failed to recover over N2.8 trillion in revenue.
Other notable contradictions uncovered in the report include:
- Nigerian Security Printing and Minting Company (NSPM): Failed to remit over N10 billion in taxes and could not account for N14 billion in contracts awarded without a transparent process, retaining government vehicles worth over N400 million without proper documentation.
- National Pension Commission (PenCom): Did not remit over N4.4 billion in internally generated revenue to the Consolidated Revenue Fund.
- Federal Ministry of Works (Housing Sector): Processed payments exceeding N1 billion without appropriate documentation.
- Federal Road Safety Corps (FRSC): Allegedly issued 52,714 National Driver’s Licenses in 2020 worth over N316 million, which remain unaccounted for, alongside a failure to remit over N3.5 billion collected for driver’s licenses.
SERAP has warned that if urgent measures are not taken to recover the missing funds and hold the implicated parties accountable, it will resort to legal action to compel the government to act. The organization underscored the constitutional duty of the Tinubu administration to combat corruption and foster public welfare.
Citing both the Nigerian Constitution and international anti-corruption treaties, SERAP stressed that a thorough investigation and prosecution of those involved in these financial discrepancies would reinforce accountability, restore public trust, and deter future mismanagement of public resources.
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