The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Ahmed Tinubu to reject the recently approved $1.08 billion World Bank loan aimed at supporting Nigeria’s electricity sector, citing concerns over the country’s increasing debt profile and widespread financial mismanagement.
In a statement via its official X (formerly Twitter) handle, SERAP stated:
“We’ve urged President Tinubu to reject the recently approved $1.08 billion World Bank loan for Nigeria and instead recover the missing N233 billion from the Nigerian Bulk Electricity Trading Plc and other MDAs. The loan is neither necessary nor in the public interest.”
The World Bank loan, approved last week, is part of the Power Sector Recovery Performance-Based Operation (PSRO), designed to enhance access, reliability, and affordability of electricity across Nigeria.
However, SERAP maintains that the loan only perpetuates a harmful cycle of borrowing without sufficient transparency or measurable impact. The organization has long criticized the federal government’s rising debt levels and called for more responsible fiscal practices.
Rising Debt, Missing Funds
According to the Debt Management Office (DMO), Nigeria owes the World Bank $17.32 billion, with the International Development Association (IDA) accounting for $16.84 billion—representing over 39% of the country’s total external debt.
SERAP referenced recent audit findings from the Office of the Auditor-General for the Federation, which revealed that over N233 billion in public funds remain unaccounted for in several Ministries, Departments, and Agencies, including NBET.
The civil society group emphasized that the government should first recover looted or mismanaged funds before acquiring new loans. It warned that persistent borrowing without accountability could undermine investor confidence and damage Nigeria’s global credit reputation.
“Sustainable development must be anchored in transparency, responsible governance, and optimal use of available resources,” SERAP added.
SERAP has previously filed legal actions and petitions demanding better oversight in government borrowing and public expenditure. This recent call aligns with growing public concern over Nigeria’s fiscal health and the efficacy of foreign loans.
As Nigeria continues to struggles with power shortages and financial instability, SERAP’s intervention raises critical questions about the true cost of debt and the need for accountability in governance.
