‘He Has Barely 2 Weeks In Office’ – World Bank Asked To Halt Disbursement Of $800m Loan To Buhari Administration

This was disclosed in a letter to the global financial institution by the Socio-Economic Rights and Accountability Project (SERAP).

The World Bank has been asked not to disburse the $800m loan sought by President Muhammadu Buhari’s administration. This was disclosed in a letter to the global financial institution by the Socio-Economic Rights and Accountability Project (SERAP).

Recall that the Federal Government had early this year said it planned to borrow $800 million to support 50 million Nigerians as palliatives for fuel subsidy removal. Recently, he wrote to the Senate seeking approval for the said loan. But SERAP, in its letter, wants the World Bank President Mr David Malpass to suspend the disbursement of the $800m loan and await proper explanation from the incoming administration.

The advocacy group alleged that the usage of such loans needs to be clarified in view of the economic problems bedeviling the nation.

The statement partly reads,“The World Bank should comply with its own Articles of Agreement in disbursing any loans. The Bank should not sacrifice international standards in the rush to disburse the $800m loan to the government. “Suspending any disbursement of the loan to the government would reduce the risks and vulnerability to corruption and mismanagement.”

“SERAP is concerned that the government is seeking to spend the loan when it has barely two weeks to leave office and when the project objectives and intended purposes for which the loan is reportedly approved and will be disbursed remain unclear. “The government has not satisfactorily explained or justified the need for the loan at this time, especially given the lack of clarity on its use and the crippling debt burden, and the disproportionately negative impact of these retrogressive measures on poor Nigerians.”