The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the governors of Nigeria and the Federal Capital Territory’s Minister, Mr. Nyesom Wike.
The lawsuit pertains to their alleged failure to disclose details of loans amounting to N5.9 trillion and $4.6 billion procured by their respective states and the FCT. SERAP demands the publication of loan agreements, including specifics and locations of projects funded by these loans.
The lawsuit was triggered by a revelation last month by Governor Uba Sani of Kaduna State. He disclosed that the preceding administration of Nasir El-Rufai left behind a debt of $587 million and N85 billion, along with 115 contractual liabilities, rendering the state incapable of paying salaries.
In the lawsuit, numbered FHC/ABJ/CS/592/2024 and filed at the Federal High Court, Abuja, SERAP seeks a court order directing the governors and Mr. Wike to account for the loans and publish the loan agreements and project locations funded by these loans.
SERAP also urges the court to instruct the governors and Mr. Wike to invite the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to probe the expenditure of all loans procured by their states and the FCT to date.
SERAP argues that granting these requests is in the public interest. It asserts that Nigerians have the right to scrutinize the loan agreements and understand how the domestic and foreign loans procured by the governors and the FCT Minister are utilized.
SERAP warns that a lack of transparency in loan expenditure by the governors and Mr. Wike could adversely affect the fundamental interests of the citizens. It also contends that several states and the FCT are allegedly misusing public funds, potentially including the loans, to finance unnecessary travel, purchase luxury and bulletproof vehicles, and generally support politicians’ extravagant lifestyles.
SERAP further alleges that many states and the FCT are mismanaging public funds, potentially including domestic and foreign loans procured from bilateral and multilateral institutions and agencies. It claims that many states and the FCT are in arrears of civil servants’ salaries and pensions, with several states resorting to borrowing to pay salaries.
SERAP insists that transparency in loan expenditure by the states and FCT is crucial to enhance accountability, prevent corruption, and foster trust in democratic institutions, ultimately strengthening the rule of law.
The lawsuit, filed on SERAP’s behalf by its lawyers Kolawole Oluwadare, Kehinde Oyewumi, and Ms. Valentina Adegoke, states in part that states and the FCT should adhere to principles of transparency and accountability and proactively account for the loans procured and publish copies of the loan agreements.
According to Nigeria’s Debt Management Office, the total public domestic debt portfolio for the country’s 36 states and the Federal Capital Territory stands at N5.9 trillion, while the total public external debt portfolio is $4.6 billion.
SERAP argues that the domestic and foreign loans procured by the states and the FCT are susceptible to corruption and mismanagement. It asserts that the states and the FCT have a duty to ensure transparency and accountability in how any loans procured by them are spent, to mitigate the risk of corruption and mismanagement.
