The Debt Management Office (DMO) has disclosed that the collective public debt for Nigeria’s 36 states and the Federal Capital Territory stands at N9.17 trillion.
This revelation comes amid calls from the Socio-Economic Rights and Accountability Project (SERAP) urging the World Bank to halt the issuance of loans to these states. SERAP specifically addressed a letter to the President of the World Bank, Ajay Banga, dated November 25, 2023.
In the letter, SERAP requested a thorough, transparent, and effective investigation into the spending of loans and other facilities by the country’s 36 state governors.
The organization advocates for the suspension of any loans and funding in the presence of relevant admissible evidence of mismanagement or diversion of public funds by any of the states.
Furthermore, SERAP urged the global bank to suspend further loan applications and funding requests from the states until satisfactory explanations regarding the spending of loans and other facilities obtained from the Bank and its partners are provided.
Deputy director of SERAP, Kolawole Oluwadare, shared this information in a statement on Sunday.
The statement stressed the concerns about significant risks associated with mismanagement or diversion of funds linked to the Bank’s investments in many of Nigeria’s states.
SERAP argued that lending to states with credible allegations of mismanagement is neither appropriate nor responsible.
Highlighting the financial landscape, SERAP pointed out that the total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion.
Additionally, the organization noted that the Federal Government’s total public debt portfolio is N78.2 trillion.
In its appeal to the World Bank, SERAP called for an expressed commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their respective states.
The organization’s proactive stance underscores its dedication to transparency, accountability, and responsible financial practices within Nigeria’s public sector.
