The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Ahmed Tinubu to turn down a $1.08 billion loan recently approved by the World Bank, raising serious concerns over Nigeria’s rising debt burden and billions in unaccounted public funds.
In a post on its official X (formerly Twitter) page on Sunday, the rights group said:
“We’ve urged President Tinubu to reject the recently approved $1.08 billion World Bank loan for Nigeria and instead recover the missing N233 billion from the Nigerian Bulk Electricity Trading Plc and other MDAs.
The loan is neither necessary nor in the public interest.”
The loan, approved last week, is aimed at supporting reforms in Nigeria’s troubled electricity sector.
But SERAP believes that taking on more debt, especially when large sums are reportedly missing from government agencies, will only worsen the country’s financial challenges without delivering real benefits to citizens.
According to the Debt Management Office (DMO), Nigeria’s total debt to the World Bank now stands at $17.32 billion.
Most of that, about $16.84 billion, is owed to the International Development Association (IDA), making up 39.14% of the country’s external debt.
SERAP, which has consistently called out what it sees as reckless borrowing, said that continued loans without proper oversight risk trapping Nigeria in a cycle of debt and mismanagement.
It cited audit reports from the Office of the Auditor-General for the Federation, which uncovered that more than N233 billion remains unaccounted for across several key Ministries, Departments, and Agencies—including the Nigerian Bulk Electricity Trading Plc (NBET).
Instead of piling up more loans, SERAP wants the Tinubu administration to focus on recovering public funds already lost or misused.
The group said this would not only reduce the need for new borrowing but also show a commitment to transparency and good governance.
SERAP also called for stronger anti-corruption efforts and more disciplined public spending, warning that persistent borrowing without accountability could erode investor trust and weaken Nigeria’s global credit reputation.
The $1.08 billion loan is part of the World Bank’s Power Sector Recovery Performance-Based Operation (PSRO), which is meant to improve access, reliability, and affordability of electricity in Nigeria.
Despite billions spent over the years, the country still struggles with widespread power shortages and unreliable supply.
SERAP has filed lawsuits and sent petitions in the past over government borrowing and spending, and this latest appeal aligns with broader public concern over Nigeria’s rising debt profile.
