SERAP Asks 36 Governors, FCT Minister to Account for N5.9tn, $4.6bn Loans
THE Socio-Economic Rights and Accountability Project (SERAP) has issued a one-week ultimatum to Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, to account for loan agreements and spending details of some N5.9 trillion and $4.6 billion loans obtained by their states and the FCT.
SERAP’s request also includes details and locations of projects executed with the loans.
It also urged them to: “Promptly invite the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to investigate the spending of the domestic and external loans obtained by your state and the FCT.”
SERAP’s request followed the disclosure last week by Governor Uba Sani of Kaduna State that the immediate past administration of Nasir el-Rufai left $587 million and N85 billion debt as well as 115 contractual liabilities, making it impossible for the state to pay salaries.
In the Freedom of Information (FoI) request dated March 30, 2024 and signed by SERAP Deputy Director Kolawole Oluwadare, the organisation said that it is in the public interest to publish copies of the loan agreements and details of how the loans obtained were spent.
SERAP said: “Nigerians have the right to know how their states are spending the domestic and external loans obtained by the governors. Widely publishing copies of the loan agreements and spending details of the loans obtained would ensure that persons with public responsibilities are answerable to the people for the performance of their duties in the management of public funds.
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and your state to comply with our request in the public interest.
“SERAP is seriously concerned that many of the country’s 36 states and FCT are allegedly mismanaging public funds which may include domestic and external loans obtained from bilateral and multilateral institutions and agencies.
“Transparency in the spending of the loans obtained by your state is fundamental to increase accountability, prevent corruption, and build trust in democratic institutions with the ultimate aim of strengthening the rule of law,” it said.
Quoting Nigeria’s Debt Management Office (DMO), it said the total public domestic debt portfolio for the country’s 36 states and the FCT is N5.9 trillion, with the total public external debt portfolio at $4.6 billion.
“Many states and the FCT reportedly owe civil servants’ salaries and pensions. Several states are borrowing to pay salaries. Millions of Nigerians resident in your state and the FCT continue to be denied access to basic public goods and services such as quality education and healthcare.
“Several states including your state are also reportedly spending public funds which may include the domestic and external loans to fund unnecessary travels, buy exotic and bulletproof cars and generally fund the lavish lifestyles of politicians,” the organisation said.
It stated that it was seriously concerned that the domestic and external loans obtained by the states and the FCT are vulnerable to corruption and mismanagement.
“Your government has a responsibility to ensure transparency and accountability in how any loans obtained by your state are spent, to reduce vulnerability to corruption and mismanagement.
“Publishing copies of the loan agreements obtained by your state and the FCT would allow Nigerians to scrutinise them, and promote transparency and accountability on the spending of public funds including the loans obtained.
“SERAP believes that providing and widely publishing the details of the spending of the domestic and external loans obtained by your state and the FCT would enable Nigerians to effectively and meaningfully engage in the management of the loans,” it added.
The organisers said it believes that the constitutional principle of democracy also provides a foundation for Nigerians’ right to know the details of loan agreements and how the loans obtained are spent.
Citizens’ right to know, it pointed out, promotes openness, transparency, and accountability that is in turn crucial for the country’s democratic order.
“The effective operation of representative democracy depends on the people being able to scrutinise, discuss and contribute to government decision making, including on the spending of loans obtained by your state and the FCT.
“To do this, they need information to enable them to participate more effectively in the management of public funds by their state government and the FCT,” it said.