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$114.28m World Bank Loan: SERAP Demands Public Scrutiny, Transparency In Spending
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Following World Bank’s approval of $114.28million credit and grant to fight Covid-19 in Nigeria, the Socio-Economic Rights and Accountability Project (SERAP) has asked the global financial institution to prevail on the federal and 36 state governors to accept voluntary scrutiny by Nigerians and civil society regarding the spending of the funds.
SERAP, in an open letter to the World Bank President, Mr. David Malpass, dated August 8, 2020, and signed by SERAP Deputy Director, Kolawole Oluwadare, said “the Nigerian government must be made to publicly commit to transparency and accountability in the spending of the fund, including by publishing details on a dedicated website.
“Details of how they will spend the money to buy medical equipment, and improve access to clean water, sanitation and hygiene, must also be made public”, SERAP demanded.
The World Bank Board of Directors, had last Friday, approved $114.28million financing “to help Nigeria prevent, detect and respond to the threat posed by Covid-19 with a specific focus on state level responses.”
According to the bank, the $100million credit with Project ID number: P173980, is due to be paid back over 30 years, with additional five years grace period.
But SERAP in its letter said “The World Bank has a responsibility to ensure that federal authorities and state governments are transparent and accountable to Nigerians in how they spend the approved credit and grant.
“The bank should tread carefully in the disbursement of funds or distribution of resources to states if it is to reduce vulnerability to corruption and mismanagement.”
SERAP expressed “serious concerns that the money and resources may be stolen, diverted or mismanaged by state governors without effective transparency and accountability mechanisms, especially given increasing reports of allegations of corruption and mismanagement of Covid-19 funds by agencies of the Federal Government and state governments, and impunity of perpetrators.”
SERAP said: “Insisting on transparency and accountability would ensure repayment of the credit, and protect the project objectives and intended purposes for which the funds and resources are approved, disbursed and distributed.”
According to SERAP, “The Bank’s power to provide credits and grants is coupled with a fiduciary responsibility to ensure that governments spending such funds meet international standards of transparency and accountability, including those entrenched in the UN Convention against Corruption to which Nigeria is a state party.”
The letter copied to the World Bank Country Director for Nigeria, Shubham Chaudhuri, read in part: “Implementing these recommendations would prevent a repeat of alleged diversion and mismanagement of recovered Abacha loot disbursed by the Federal Government to state governments.
“The World Bank should make clear to all the governors that it will cancel the credit and grant should they renege on their transparency and accountability commitments to spend the money and use the resources exclusively for Covid-19 related projects, and not to steal, divert or mismanage them.”
“As the level of Federal Government monitoring of the spending of the credit and grant and use of the resources by state governors may be based on political considerations, the bank’s influence might be the only restraining force state governors will take seriously.
“SERAP encourages you and the World Bank in any future engagements with state governments in Nigeria to insist on accessing information on how governors are spending security votes, and the amounts of public funds states are allocating to pay former governors life pensions, among others, as well as consider the level of corruption within each state before approving any credits and grants.
“SERAP also encourages you and the World Bank not to sacrifice international standards of transparency and accountability in the rush to provide Covid-19 credit and grant to the 36 state governments.
“According to our information, the World Bank Board of Directors on Friday, August 7, 2020 approved $114.28million financing ‘to help Nigeria prevent, detect and respond to the threat posed by Covid-19 with a specific focus on state level responses’.
“This includes $100million credit from the International Development Association (IDA) and $14.28million grant from the Pandemic Emergency Financing Facility.
“SERAP notes that the Government of Nigeria is expected to disburse the money and distribute the resources to the 36 state governments and the Federal Capital Territory (FCT) as ‘immediate support to break the chain of Covid-19 local transmission and limit the spread of Coronavirus through containment and mitigation strategies.’
“The approved money will also ‘help to finance federal procurements of medical equipment, laboratory tests, and medicines to be distributed to the states based on their needs, and to provide support to laboratories for early detection and confirmation; equipping and renovating isolation and treatment centres, including community support centres; and improving in patient transfer systems through financing of ambulances and training’.”
SERAP, therefore, urged Malpass and the World Bank to: “Disclose and widely publish the terms and conditions of the credit and grant, and the exact amount repayable by Nigeria in 30 years’ time, including the details of the interest, if any; and the consequences of Nigeria defaulting.
“To also ask President Muhammadu Buhari to instruct the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to jointly track and monitor spending of the credit and grant by state governments; ask state governments to allow the media to freely report on their spending of the funds and use of the resources, and not to clampdown on journalists and the media in the exercise of their constitutional responsibilities to expose corruption and hold governments to account.
“To also ask state governments to explicitly commit to encouraging and protecting whistle-blowers as a way of ensuring that the funds and resources are not stolen, diverted or mismanaged; clarify if any, to the Bank’s knowledge and information, the credit and grant have been approved by Nigeria’s National Assembly pursuant to its constitutional duties, including its oversight functions under Section 88 of the 1999 Constitution (as amended).
“Ensure increased transparency of sanctions and terms and conditions of the credit and grant to each state to enable Nigerians to ask questions as to the spending of the money and use of the resources from their state governments.”
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Police Rescue Kidnapped Victim, Recover Stolen Vehicle
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Operatives of the Edo State Police Command have rescued one Osazee Okugbowa from suspected kidnappers.
Moses Yamu, the command’s spokesperson, disclosed this in a statement yesterday, stating that the victim was rescued by operatives of Ologbo Division, Ikpoba-Okha Local Government Area, on Friday, 8th February 2025, at about 5 pm.
Yamu said the victim was kidnapped on 7th February, 2025 by five armed men from his residence in the presence of his family in the Power Line area of Owanoba community.
He stated that the victim had since been reunited with his family after receiving medical attention.
He, however, added that the command is on the trail of the suspects in a bid to arrest them.
Meanwhile, Yamu disclosed that the command has recovered a silver-coloured Toyota Yaris with registration number 535 DR, which was snatched from its owner at gunpoint at Upper Mission Road Extension in Benin City.
He said the car was recovered by operatives of the Okuaihe Division in Uhunmwonde Local Government Area, following a distress call received on 6th February 2025.
He added that the operatives intercepted and pursued the car snatchers, who abandoned the vehicle at Iguomon Community along the Benin-Agbor Road.
Yamu said the car has been handed over to its owner while efforts are ongoing to identify and arrest the suspects.
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Soludo Rebagged FG Rice Shared To APGA Members-APC
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The All Progressives Congress, APC, in Anambra State has protested the dominance of the Chukwuma Soludo-led All Progressives Grand Alliance, APGA, in the affairs of the President Bola Tinubu-led Federal Government.
The party chairman in the state, Mr Basil Ejidike while speaking at the weekend said the dominance of Soludo in affairs that concern Anambra even at the federal level has become a challenge to the state chapter of the APC.
He said all appointments coming to Anambra from the Federal Government had nominees from APGA, while even rice distributed to all states to cushion the effect of hardship had Anambra’s share rebagged with the picture of the governor and distributed to only APGA members last Christmas.
Appealing to Tinubu, Ejidike said, “Sir, may I seize this opportunity to draw your attention to some challenges confronting the APC in Anambra State, that require your kind intervention.
“The issue of appointments made by the Federal government without recourse to the party is inimical to the growth and success of the party in our state, as these appointees do not reckon with the party at the state level.
“Whereby, most of those who have made and are still making heavy sacrifices for the party have not been adequately rewarded and appreciated, many of those who have gotten juicy Federal Government appointments in the past were mainly non-party members, drawn especially from our rival All Progressives Grand Alliance (APGA).”
He said the trend has not served as a source of inspiration or motivation to party members, and is threatening its strength and enthusiasm of emerging victorious in the Anambra 2025 project.
“At the ward, local government and state levels, our members are being discriminated against, as APGA does not recognize or reckon with those who are not their members in the distribution and allocation of government appointments and incentives.
“More worrisome is the fact that what we as a state get from the federal government as incentives and palliatives are usually sent through the state government.
“Sequel to the above, non-APGA members are denied access to them. It is on record that bags of rice sent as palliatives by the federal government were repackaged, and Governor Soludo’s pictures and APGA logo embossed on those bags, thereby giving the impression that they were provided by the governor.
“This arrangement has continued to diminish our party’s influence and reach within the state, and we are terrified to say the least.
“APC in Anambra have come with a passionate appeal, asking that you (Ganduje) intervene and save our members in Anambra from neglect.
“Your kind intervention, Sir, will bolster the morale of our committed party men and women towards the task ahead,” he added.
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2025 Budgets: I Hope Snake, Monkey Won’t Swallow This One-Atiku
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Former Vice President of Nigeria, Atiku Abubakar, has cautioned against the misappropriation of funds allocated to the health sector in the 2025 budget, referencing past bizarre claims of animals—such as snakes, termites, gorillas, and monkeys—being blamed for missing public funds. He stressed that such absurd incidents must not be allowed to happen with resources meant for healthcare.
Amid dwindling resources and reduced external support for healthcare services, Abubakar emphasised the need for transparency and accountability in the government’s $1.07 billion budgetary appropriation for the health sector. He called for mechanisms to ensure public audits and proper utilization of every kobo earmarked for healthcare.
The former vice president specifically questioned the government’s failure to provide a detailed breakdown of how it intends to spend over a billion dollars in the primary health sector. He noted that while investment in primary healthcare is crucial for providing Nigerians with accessible and affordable medical services, it would be unethical for the government to allocate such a significant sum without disclosing its intended use.
“The Federal Government has announced plans to spend a whopping $1.07 billion in the primary health sector, in addition to the N2.48 trillion initially proposed for healthcare in the budget,” Abubakar noted.
“What is even more concerning is that this additional funding is largely sourced from foreign loans, with a small portion coming from an international donor agency. Since these loans must be repaid, Nigerians have the right to know the full details and ensure that the expenditure is transparent and well-justified,” he added.
Abubakar further criticized the government for failing to commit to any physical infrastructure projects within the health sector, suggesting that this raises red flags about potential mismanagement or fraud.
According to the government, the funds will be used to improve governance in healthcare and strengthen primary health services nationwide, including recruitment, training, and retention of healthcare workers and teachers. However, Abubakar argued that the government has a poor track record in managing public funds, particularly in humanitarian services, and that Nigerians should not accept vague explanations without clear accountability mechanisms.
“It is difficult to trust this administration’s claims, especially given its history of misleading Nigerians about investments in social infrastructure,” he said.
He pointed out the government’s misleading statements about improvements in tertiary hospitals, despite the reality that many of these institutions lack basic amenities, such as stable electricity supply.
“The Tinubu administration has failed in the health sector due to poor funding. Major diseases in primary healthcare, including malaria, tuberculosis, and HIV/AIDS, remain critical challenges. If this government is truly committed to healthcare, it must clarify how it plans to use this intervention fund to tackle these diseases,” Abubakar stated.
He also criticized the government’s response to the recent withdrawal of American aid for HIV/AIDS treatment, noting that its proposed intervention of N5 billion is grossly inadequate.
“If the Tinubu administration does not present a clear framework for managing this significant health sector investment or subject it to proper legislative scrutiny, then it may be safe to conclude that this is yet another case of public funds being mismanaged under the guise of serving Nigerians,” Abubakar concluded.
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