The Socio-Economic Rights and Accountability Project (SERAP) has written to the World Bank, asking it to suspend loans to the country’s 36 states.

In a letter addressed to the World Bank President, Ajay Banga, SERAP urged him “to promptly, transparently, and effectively conduct an investigation into the spending of loans and other facilities by the 36 state governors."

SERAP said the World Bank should suspend any loans and funding if there is relevant, admissible evidence of mismanagement or diversion of public funds by any of the states.

This was disclosed in the letter dated November 25, 2023, signed by SERAP deputy director Kolawole Oluwadare.

SERAP alleges that many of the 36 states were mismanaging public funds, including loans obtained from the Bank and its partners and allocations from the Federal Government.

The statement said the World Bank and its partners need to make it clear to Nigeria’s state governors that they will not tolerate any mismanagement or diversion of public funds by immediately suspending any pending loans and other funding to them until the allegations of mismanagement or diversion of public funds are investigated.

SERAP threatened it would consider the option of seeking legal action should the World Bank fail to implement the recommendations contained in its letter.