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SERAP Gives 36 Governors, FCT  7 Days Ultimatum To Provide Loan Agreement, Spending


By; AMOS TAUNA, Kaduna 

The 36 states governors and the Minister of the Federal Capital Territory, Nyesom Wike, have been given one-week ultimatum by the Socio-Economic Right and Accountability Project to provide the loan agreements and spending details of the loans obtained by their states and the FCT.

A statement issued yesterday by the organisation’s Deputy Director, Kolawole Oluwadare, explained that details and locations of projects executed with the loans that amount to N5.9 trillion and $4.6 billion are requested to be included.

It urged the state governors and the FCT minister to widely publish copies of its requests as it would help keep Nigerians in the know of how their states’ governments spent their loans, and also ensure that persons with public responsibilities are answerable to the people for the performance of their duties in the management of public funds.

SERAP also urged them to promptly invite the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to investigate the spending of the domestic and external loans obtained by their state and the FCT.

The statement noted that its request followed the disclosure made by Sani, on Saturday, when he lamented the huge debt inherited from his predecessor, Nasir El-Rufai, on May 29, 2023, saying that the state is now left with a few amounts, not enough to pay salary, as his administration inherited a total of $587m, N85bn and 115 contract liabilities from the ex-governor.

The organisation said that in the Freedom of Information requests dated March 30, 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said that it is in the public interest to publish copies of the loan agreements and details of how the loans obtained are spent.

It added, “Widely publishing copies of the loan agreements and spending details of the loans obtained would ensure that persons with public responsibilities are answerable to the people for the performance of their duties in the management of public funds.”

The FoI requested that it would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of the letter, stressing that if they have not heard from them by then, SERAP shall take all appropriate legal actions to compel them and their state to comply with their request in the public interest.

It said that it is seriously concerned that many of the country’s 36 states and FCT are allegedly mismanaging public funds that may include domestic and external loans obtained from bilateral and multilateral institutions and agencies, saying that according to Nigeria’s Debt Management Office, the total public domestic debt portfolio for the country’s 36 states and the Federal Capital Territory is N5.9 trillion, while the total public external debt portfolio is $4.6 billion.

The statement observed that many states and the FCT reportedly owe civil servants’ salaries and pensions, while several states are borrowing to pay salaries with millions of Nigerians resident in your state and the FCT continue to be denied access to basic public goods and services such as quality education and healthcare.

It said that it is concerned that the domestic and external loans obtained by the state and the FCT are vulnerable to corruption and mismanagement, stressing that the government has a responsibility to ensure transparency and accountability in how any loans obtained by the state are spent, to reduce vulnerability to corruption and mismanagement.

The effective operation of representative democracy, the statement explained depended on the people being able to scrutinised, discussed, and contribute to government decision making, including on the spending of loans obtained by your state and the FCT, pointing out that to do this, they need information to enable them to participate more effectively in the management of public funds by their state government and the FCT.

The organisation further stated that there is a significant risk of mismanagement or diversion of funds linked to loans obtained by state governments including the state, saying that the accounts of Nigeria’s 36 states and the FCT are generally not open to public scrutiny.

The state, the statement explained has obligations under international anti-corruption and human rights law, including a responsibility to promote transparency and accountability in the management of public funds, prevent mismanagement or diversion of public funds, and redress any abuse of public trust.

Opacity in the spending of loans obtained by states, according to the statement has continued to have negative impacts on the fundamental interests of the citizens and the public interest.

It said  that the state cannot hide under the excuse that the Freedom of Information Act is not applicable to the state to refuse to provide the details being sought, as the state also has clear legal obligations to provide the information as prescribed by provisions of the Nigerian Constitution 1999 [as amended], and the African Charter on Human and Peoples’ Rights (Ratification and. Enforcement) Act.

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