The Socio-Economic Rights and Accountability Project (SERAP) has urged World Bank President, David Malpass, to suspend the disbursement of an $800 million loan to the Federal Government of Nigeria.

SERAP has also called for a reopening of discussions on the loan with the incoming administration to clarify the rationale and usage of the funds, as President Muhammadu Buhari’s term ends in May 2023.

The Social Development Integrated Centre (Social Action), a non-governmental organization based in the Niger Delta, has also joined in the appeal, urging the Senate to reject President Buhari’s request to borrow the $800 million from the World Bank.

They emphasized the need to prevent fund diversion, embezzlement, and the further plunge of the country into a debt trap.

The loan was initially announced by the Federal Government in April as part of its subsidy palliative measures. President Buhari subsequently sought the Senate’s approval for the credit.

However, SERAP argues that the World Bank should comply with its own Articles of Agreement and not sacrifice international standards in disbursing the loan.

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They assert that suspending the disbursement would reduce the risks of corruption and mismanagement.

SERAP highlights the lack of satisfactory explanation or justification for the loan at this time, the crippling debt burden, and the disproportionately negative impact of retrogressive measures on poor Nigerians.

They also express concerns over transparency and accountability in the spending of previously obtained loans. SERAP threatens legal action if the World Bank refuses to suspend the loan disbursement.

According to SERAP, the overwhelming debt burden is a human rights issue as it hinders the government’s ability to allocate sufficient funds to ensure access to socio-economic rights for poor and vulnerable Nigerians.