The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to reject the recently approved $1.08 billion World Bank loan and focus on investigating the missing N233 billion in public funds. These funds, which have reportedly gone missing or been misappropriated by several Nigerian ministries, departments, and agencies (MDAs), include a significant amount unaccounted for by the Nigerian Bulk Electricity Trading Plc (NBET).
In a letter dated April 5, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization emphasized that these funds must be recovered before Nigeria takes on any new debt. According to SERAP, the missing funds should be used to reduce the nation’s debt burden and ease the financial strain caused by its current fiscal crisis.
The call comes after the World Bank approved a loan of $1.08 billion for Nigeria to improve education quality, build community resilience, and improve nutrition for underserved groups. SERAP, however, argues that accepting this loan is counterproductive given Nigeria’s growing debt crisis and the staggering amounts of missing public funds that have not been adequately investigated or recovered by the government.
SERAP’s concern stems from the 2021 audited report by Nigeria’s Auditor-General, which uncovered significant discrepancies in the management of public funds across several government agencies. According to the report, the Nigerian Bulk Electricity Trading Plc (NBET) is one of the most egregious offenders, with over N96 billion paid for services that were not performed and goods that were not supplied. Additionally, the agency reportedly spent over N111 billion in 2021 but failed to provide proper documentation for these expenditures. NBET also failed to recover more than N2 billion in outstanding debts, further contributing to the financial mismanagement.
In addition to NBET, other agencies have been implicated in the mismanagement of public funds. For example, the Nigerian Security Printing and Minting Company (NSPM) allegedly failed to remit over N10 billion in taxes, while also mishandling contract payments worth over N14 billion. Furthermore, the National Pension Commission (PENCOM) failed to account for more than N4 billion in internally generated revenue, and the Federal Road Safety Corps (FRSC) was implicated in the misappropriation of over N3 billion from driver’s license fees.
These revelations, according to SERAP, point to widespread corruption within Nigeria’s federal agencies, with billions of naira either missing or misappropriated. This, the organization argues, highlights the urgent need for the federal government to prioritize the recovery of these funds before considering any further borrowing.
SERAP has called on President Tinubu to direct the Attorney General of the Federation, Mr. Lateef Fagbemi, SAN, and other relevant anti-corruption agencies to investigate these allegations of financial mismanagement. SERAP believes that anyone found responsible should be prosecuted and that all recovered funds should be returned to the national treasury. The organization is adamant that these actions must be taken before Nigeria considers accepting new loans from institutions like the World Bank.
The letter from SERAP stated: “We strongly urge you to direct the relevant authorities to investigate the N233 billion in missing public funds, and ensure that the funds are recovered and remitted to the treasury. Any individuals found responsible for the missing funds should face prosecution, in line with the Nigerian Constitution and international anti-corruption standards.”
SERAP further emphasized that the consequences of corruption are deeply felt by the Nigerian populace, particularly in areas like healthcare, education, and infrastructure. By allowing public funds to be stolen or misused, the government exacerbates the daily hardships faced by citizens, making it even harder for the country to achieve sustainable development.
Nigeria’s debt burden has been a source of growing concern in recent years. According to SERAP, the country is facing a vicious cycle of debt distress, with debt servicing now exceeding 20 percent of tax revenue. The United Nations Independent Expert on foreign debt and human rights has raised concerns about Nigeria’s debt levels, which are putting immense pressure on the nation’s social fabric. Social tensions linked to poverty, inequality, and the inability of the government to fulfill its basic obligations to citizens are steadily increasing.
Despite these challenges, the Nigerian government has been actively seeking foreign loans to support various development projects. While the World Bank’s $1.08 billion loan is intended to support education, nutrition, and resilience-building, SERAP believes that it is not in the public interest to take on more debt when there is a substantial amount of unaccounted-for funds sitting in government coffers.
In the letter, SERAP stressed that the Nigerian government should not borrow from the World Bank or any other international body until the N233 billion in missing funds is fully recovered. They argue that this step is necessary to ensure fiscal responsibility and to uphold Nigeria’s obligations under the Nigerian Constitution, as well as its international commitments to combat corruption.
The organization’s stance is based on the premise that tackling corruption should take precedence over taking on new debt. By recovering these funds, SERAP believes Nigeria can begin to address its budget deficits and reduce its reliance on external borrowing.
SERAP also pointed to Nigeria’s international obligations in the fight against corruption, highlighting the United Nations Convention Against Corruption and the African Union Convention on Preventing and Combating Corruption. These agreements require Nigeria to take effective measures to prevent corruption, investigate misconduct, and ensure accountability for any violations.
Article 26 of the UN Convention specifically calls for “effective, proportionate and dissuasive sanctions” for those involved in grand corruption, including both criminal and non-criminal penalties. By investigating the missing funds, prosecuting those responsible, and recovering the stolen money, SERAP argues that Nigeria can demonstrate its commitment to these international standards.
In its letter, SERAP called on President Tinubu to take swift action in addressing the issue of missing funds. The organization set a deadline of seven days for the government to respond, warning that if no action is taken, they would explore legal avenues to compel the government to investigate and recover the missing funds. SERAP also stressed the importance of transparency and accountability in managing public finances, particularly in light of the country’s ongoing debt crisis.
