Reject $1.08bn World Bank loan, probe missing N233bn in NBET, SERAP tells Tinubu

Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu “to reject the recently approved $1.08bn World Bank loan.

The organization also urged the government to direct the Attorney General of the Federation and Minister of Justice Mr Lateef Fagbemi, SAN, and appropriate anti-corruption agencies to promptly investigate the allegations that over N233bn of public funds are missing, diverted or unaccounted for by the Nigerian Bulk Electricity Trading Plc., Abuja and other ministries, departments and agencies [MDAs]. 

SERAP said, “Anyone suspected to be responsible should face prosecution as appropriate, if there is sufficient admissible evidence, and any missing public funds should be fully recovered and remitted to the treasury.” 

According to SERAP, “the recovered N233 billion should be used to fund the deficit in the 2025 budget and to ease Nigeria’s crippling debt crisis.” 

The World Bank last week approved a $1.08 billion loan for Nigeria to ‘enhance education quality, build household and community resilience, and improve nutrition for underserved groups.’ 

In the letter dated 5 April 2025 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “The World Bank loan is neither necessary nor in the public interest, especially given the country’s crippling debt burden, and staggering amount of missing public funds from MDAs that your government has failed to probe or recover.” 

According to SERAP, “the Federal Government should not collect any loan from the World Bank or any other institutions and agencies until the missing N233 billion is fully recovered, consistent with the Nigerian Constitution 1999 [as amended] and the country’s international obligations.” 

The letter, read in part: “SERAP is seriously concerned that the Federal Government and Nigeria’s 36 states and the Federal Capital Territory continue to face a debt crisis, and vicious debt cycles or in debt distress or at high risk of debt distress.” 

“According to the UN Independent Expert on foreign debt and human rights, Nigeria faces debt service relative to tax revenues that exceed 20 per cent, with escalating social tensions linked to poverty and inequality.” 

“The damning revelations about the missing N233 billion are documented in the 2021 audited report published on Wednesday 13 November 2024 by the Office of the Auditor-General of the Federation.” 

“The allegations suggest a grave violation of the public trust, the Nigerian Constitution 1999 (as amended), the country’s anticorruption legislation and international anticorruption obligations.” 

“There is a legitimate public interest in ensuring justice and accountability for these grave allegations.” 

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.” 

“According to the 2021 annual audited report by the Auditor-General of the Federation, the Nigerian Bulk Electricity Trading Plc., (NBET) Abuja ‘paid over N96 billion [N96,196,794,844.67] for services not performed and goods not supplied.’” 

“NBET also reportedly spent over N111 billion [N111,601,369,196.22] in 2021 but failed to account for the money. NBET failed to ‘recover outstanding revenues/debts’ of over N2 billion [N2,896,304,647,500.30].” 

“These allegations do not include the previous allegations SERAP sent to you that NBET paid N100 billion to companies and contractors for projects not executed.” 

“The Nigerian Security Printing and Minting Company Plc (NSPM), Abuja also reportedly failed to remit over N10 billion [N10,393,793,419.34] of taxes collected. The Auditor-General is concerned that the non-remittance is a violation of paragraph 235 of the Financial Regulations.” 

“NSPM also reportedly failed to account for over N14 billion [N14,136,472,333.16] of contract payments awarded in ‘violation of due process.’ NSPM ‘illegally took custody of government vehicles worth over N400 million [N413,343,623.00] and failed to account for the vehicles/money.” 

“The National Pension Commission, Abuja also reportedly failed to account for over N4 billion [N4,429,550,386.58] of internally generated revenue to the Consolidated Revenue Fund. The Federal Ministry of Works [Housing Sector] paid over N1 billion [N1,076,662,242.61] without any documents.” 

“The Federal Road Safety Corps (FRSC) also reportedly ‘printed 52,714 National Driver’s Licence [NDL] in 2020’, amounting to over N300 million [N316,284,000.00] but failed to account for the money. The Auditor-General fears the money may be missing.” 

“The FRSC also failed to account for over N3 billion [N3,599,352,300.13] being money collected for driver’s licences. The money was ‘diverted to the Partners’ commercial banks accounts.’ The Auditor-General fears the money may have been pocketed.” 

“The FRSC also failed to remit over N465 millions [N465,415,371.35] of taxes collected. The Auditor-General fears the ‘money may have been diverted.’ He wants the ‘money recovered and remitted into dedicated CBN accounts.’” 

“These allegations can promptly be investigated and suspected perpetrators named and shamed. Taking these steps would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition and improve public confidence in the fight against corruption.”

“Investigating the allegations and naming and shaming and prosecuting those suspected to be responsible for the missing public funds and recovering the funds would serve the public interest and end the impunity of perpetrators.” 

“SERAP also notes that the consequences of corruption are felt by citizens on a daily basis. Corruption exposes them to additional costs to pay for health, education and administrative services.” 

“Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power.’”

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’”

“The UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to which Nigeria is a state party obligate your government to effectively prevent and investigate the plundering of the country’s wealth and natural resources and ensure accountability for any violations.” 

“Specifically, article 26 of the UN convention requires your government to ensure ‘effective, proportionate and dissuasive sanctions’ including criminal and non-criminal sanctions, in cases of grand corruption.”

“Article 26 complements the more general requirement of article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations.”