The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to turn down the recently approved $1.08 billion loan from the World Bank, citing Nigeria’s worsening debt crisis and a growing pile of unaccounted public funds. In a strongly worded letter, the rights group called for an immediate investigation into the alleged disappearance or mismanagement of over N233 billion in public funds across several federal ministries, departments, and agencies.

SERAP Calls for Accountability Before More Borrowing

In the letter dated April 5, 2025, and signed by its Deputy Director Kolawole Oluwadare, SERAP warned that accepting new loans without first addressing corruption and fiscal mismanagement would only plunge the country deeper into economic hardship. The organization instead urged President Tinubu to instruct the Attorney General of the Federation, Mr. Lateef Fagbemi (SAN), alongside anti-corruption agencies, to investigate the allegations and ensure the recovery of missing funds.

According to SERAP, “the recovered N233 billion should be used to fund the deficit in the 2025 budget and to ease Nigeria’s crippling debt crisis” rather than saddling the country with yet another multi-billion-dollar debt burden.

World Bank Loan Sparks Controversy

The World Bank recently approved a $1.08 billion loan for Nigeria, stating that the funds would be used to “enhance education quality, build household and community resilience, and improve nutrition for underserved groups.” While the stated purpose of the loan may seem beneficial, SERAP argues that borrowing under the current circumstances is neither necessary nor in the public interest.

In the letter, SERAP stated: “The World Bank loan is neither necessary nor in the public interest, especially given the country’s crippling debt burden and the staggering amount of missing public funds from MDAs that your government has failed to probe or recover.”

The group insists that no further borrowing should occur until the whereabouts of the missing N233 billion are fully uncovered and the funds recovered.

Grave Concerns Over Missing Public Funds

SERAP’s letter outlines a troubling pattern of financial misconduct as documented by the Auditor-General of the Federation’s 2021 audited report. According to SERAP:

• The Nigerian Bulk Electricity Trading Plc. (NBET) reportedly paid over N96 billion for services and goods that were never delivered.

• NBET also failed to account for over N111 billion in expenditures and left more than N2.8 billion in unpaid revenue uncollected.

• In addition to this, SERAP had previously flagged payments of N100 billion made by NBET to companies for projects that were never executed.

These alarming figures form the core of SERAP’s argument that any new loan is unjustifiable while existing funds continue to disappear without accountability.

Other MDAs Also Under Scrutiny

NBET isn’t the only agency in SERAP’s crosshairs. Several other government entities are implicated in the widespread mismanagement of public funds:

• The Nigerian Security Printing and Minting Company (NSPM) allegedly failed to remit over N10.3 billion in collected taxes and was unable to justify N14.1 billion in contract awards that violated procurement rules. The company also reportedly took possession of government vehicles worth over N413 million without documentation.

• The National Pension Commission is said to have withheld N4.4 billion in internally generated revenue that should have been remitted to the Consolidated Revenue Fund.

• The Federal Ministry of Works (Housing Sector) allegedly disbursed over N1 billion without providing any supporting documentation to justify the payment.

• The Federal Road Safety Corps (FRSC) is accused of failing to account for more than N3.5 billion collected from driver’s license fees, with the funds allegedly diverted to commercial bank accounts belonging to private partners. The agency also printed over 52,000 National Driver’s Licenses in 2020, valued at N316 million, with no evidence of where the money went. Furthermore, the FRSC did not remit over N465 million in collected taxes.

The Auditor-General’s concerns across these agencies are consistent: misappropriation, diversion, and a glaring absence of due process.

SERAP Threatens Legal Action

SERAP has given the federal government a 7-day deadline to respond to its demands. If no action is taken, the organization vows to pursue legal action in a bid to compel the Tinubu administration to act in the public interest.

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest,” the letter reads.

A Mounting Debt Crisis

Nigeria’s debt profile continues to rise, raising fears of economic instability. SERAP points out that both the federal government and all 36 states are now either in debt distress or dangerously close to it, as persistent borrowing without transparency adds pressure on the national budget.

The debt stock has increased rapidly in recent years, fueled by multiple foreign loans taken to fund social programs, infrastructure projects, and economic stimulus packages. Critics argue that much of this borrowed money ends up mismanaged or unaccounted for, as seen in the latest Auditor-General’s report.

A Call for Fiscal Discipline and Transparency

At the heart of SERAP’s appeal is a broader call for transparency, accountability, and fiscal discipline. The group insists that public funds must be safeguarded and any instances of corruption addressed before more debt is added to an already overwhelmed financial system.

SERAP emphasizes that the Nigerian Constitution and the country’s international anti-corruption obligations require the government to ensure that public funds are not misappropriated and that those responsible for corruption face prosecution.

Conclusion: A Test of Leadership and Integrity

SERAP’s challenge to the Tinubu administration is a test of political will and governance ethics. As the country struggles under the weight of rising debt, inflation, and public discontent, civil society groups like SERAP are demanding a reset — one that prioritizes recovery and transparency over reckless borrowing.

Whether President Tinubu will heed the call, investigate the missing funds, and recover them for national development remains to be seen. But for many Nigerians watching closely, this moment could determine whether the current administration is genuinely committed to fighting corruption — or simply continuing a cycle of impunity masked by development promises.