Disclose Nigeria’s loan agreements since 1999, SERAP urges Tinubu

The Socio-Economic Rights and Accountability Project has urged President Bola Tinubu to disclose the agreements and spending details of loans obtained by the administrations of Nigeria’s past presidents since May 1999.

SERAP urged Tinubu “to direct appropriate ministries, departments and agencies to provide our organisation with copies of the loan agreements obtained by the governments of former Presidents Olusegun Obasanjo, Umaru Yar’Adua, Goodluck Jonathan and Muhammadu Buhari.”

This was disclosed in a statement issued by the organisation’s Deputy Director, Kolawole Oluwadare,

SERAP is also seeking “the spending details of any such loans as well as the interests and other payments so far made on the loans.

Nigeria’s four past democratically-elected presidents include Obasanjo, who ruled for eight years from 1999 to 2007.

Obasanjo’s administration was succeeded by the late Yar’Adua (2007 – 2010); followed by Jonathan (2010 – 2015); and then the immediate past president, Buhari, whose administration ruled from 2015 – 2023.

The organisation stated that “widely publishing the agreements would allow Nigerians to scrutinise it and to demand accountability for the spending of the loans.”

SERAP lamented that the details provided may help to explain why “despite several billions of dollars in loans obtained by successive governments, millions of Nigerians continue to face extreme poverty and lack access to basic public goods and services.”

This latest demand by SERAP is coming two weeks after it gave the Kaduna State Governor, Uba Sani; the Minister of the Federal Capital Territory, Nyesom Wike, and other 35 state governors one-week ultimatum to provide the loan agreements and spending details of the loans obtained by their states and the FCT.

As contained in the latest sub-national debt – domestic and external debts, which were released by the Debt Management Office as of December 30 and June 30, 2023, respectively;  “for the sub-nationals, Plateau got N16.32bn; Rivers borrowed N7.07bn; Zamfara, N14.26bn; and the FCT under the leadership of Nyesom Wike borrowed N6.75bn from domestic creditors,” amongst others.

However, in its response, the Zamfara State Government refuted the DMO’s report that it borrowed N14.26 billion, adding that it has “never applied for loans or approached the state Assembly or National Assembly for such a request.”

Also, the Kaduna State Government, through the Ministry of Finance, denied procuring a fresh $17.69m loan.

“We did not borrow the said amount or any other amount as reported. The claims are entirely false and fabricated,” said the state Commissioner for Finance, Shizzer Bada.

However, SERAP demanded that Tinubu establish an “independent audit on the spending of the loans obtained by the governments of the former presidents,” and make its results available to the public.

“Democracy requires accountability and accountability requires transparency.

“Nigerians are entitled to information about what their government is doing in their name. This is part of their right to information,” SERAP said.

The statement noted that publishing the agreements and details of spending of the said loans “would demonstrate” Tinubu’s “oft-expressed commitment to openness in government and to promote accountability,” adding that it would also “improve public accountability” in the MDAs.

Quoting the DMO, SERAP said that “the total public domestic debt portfolio for the country is N97.3 trillion ($108 billion). The Federal Government’s debt is N87.3 trillion ($97 billion).”

It said that the interest paid on loans by the FG in 2015 was $5.5 billion; in 2016, $4.4bn; in 2017, Nigeria paid $5bn as interest; in 2018, $6.5bn was paid; while $6.2bn was paid in 2019.

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

It noted that Tinubu’s administration “has a responsibility to ensure transparency and accountability in how any loans obtained by the Federal Government are spent, to reduce vulnerability to corruption and mismanagement.”

“Our requests are brought in the public interest, and in keeping with the requirements of the Nigerian Constitution 1999 [as amended], the Freedom of Information Act, and the UN Convention against Corruption, the International Covenant on Civil and Political Rights and the African Charter on Human and Peoples’ Rights to Nigeria is a state party.

“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their government’s activities,” the statement concluded.