The World Bank has been urged by the Socio-Economic Rights and Accountability Project (SERAP) to stop the loan disbursement of $800 million to the Federal Government of Nigeria.
The group also requested that the institution approach the incoming administration for an explanation of the loan.
Recall that the administration of President Muhammadu Buhari had declared its aim to use the $800 million loan as part of its subsidy palliatives measures.
Three weeks prior to the end of his tenure, Buhari had, in a fresh development, asked the Senate to approve the loan.
Reacting in a letter dated May 13, SERAP’s Deputy Director, Kolawole Oluwadare, advised the World Bank to comply with its own Articles of Agreement in disbursing any loans.
The rights group warned the bank’s management against sacrificing international standards in a bid to disburse fresh loans to Nigeria.
SERAP also lamented that Buhari’s administration was rushing to get another loan when the objectives and intent of the loan remain unclear.
The letter argued that the lack of clarity on its use, the crippling debt burden, and the negative impact of the retrogressive measures on poor Nigerians.
“The World Bank cannot close its eyes to these important transparencies, accountability, and human rights issues.”
“We would consider the option of pursuing legal action should the World Bank refuse to suspend the disbursement of the loan to the Federal Government.
When the country is burdened by unsustainable debts, there will be little money left to ensure access of poor and vulnerable Nigerians to legally enforceable socio-economic rights.”
Fuel Subsidy Removal: FG Debunks Collecting Another Fresh $800 Million Loan From World Bank
Meanwhile, the Federal Government has debunked reports circulating in some media platforms that it will take out a second loan in addition to the $800 million it received from the World Bank to lessen the impact of the anticipated elimination of fuel subsidy.
Zainab Ahmed, the minister of finance, budget, and national planning, called such reports “tissues of lies.”
She claims that, aside from the $800 million loan from the World Bank, the government is not seeking a new loan to mitigate the effects of the impending elimination of fuel subsidy.
She said that the $800 million loan from the World Bank, which is presently awaiting parliamentary approval before the Federal Government begins disbursement, was the sole available instrument intended to ease the subsidy removal constraint.
Ahmed said, “The government is, therefore, not seeking another loan for the pending fuel subsidy removal. It is one and the same.
“It will be recalled that the facility would be deployed to provide succour to 10 million households, who are expected to get N5,000 each for a period of six months.”
The minister also submitted that the initial duration of the palliatives meant to cushion the effect of the planned petrol subsidy removal on vulnerable Nigerians was for six months, but would be reviewed upon extensive consultation with the stakeholders.
“The $800 million has been negotiated and approved by the Federal Executive Council (FEC) and we now have a request before the parliament for approval.
“And once the parliament approves it, the next administration can decide on the utilization.
“We’ve also been doing preparatory work side by side along the approval process. This includes expanding the committee to include members of the transition team of the President-elect. The process will include the verification of the social register, which will be used for electronic transfers of the funds,” she added.
Ada Peter
