The Socio-Economic Rights and Accountability Project (SERAP) has issued a public appeal to President Bola Ahmed Tinubu, urging him to reject the $1.08 billion loan recently approved by the World Bank and to launch an immediate investigation into the alleged mismanagement of N233 billion in public funds by the Nigerian Bulk Electricity Trading Plc (NBET).
In a statement released on Sunday, SERAP argued that accepting the World Bank loan under the current circumstances would amount to enabling unchecked financial mismanagement, particularly within critical sectors such as power. The organization contends that before taking on new debt, the administration must demonstrate a commitment to transparency and accountability by addressing the unresolved financial discrepancies within NBET.
A Sector Under Scrutiny
The electricity sector has long been dogged by inefficiencies, poor service delivery, and financial opacity. NBET, which plays a central role in Nigeria’s power value chain by buying electricity from generation companies and selling to distribution companies, has faced repeated criticism over its financial records and internal governance. SERAP’s call brings fresh urgency to ongoing questions about where billions in budgeted funds have gone—with little to show in terms of improved electricity supply for Nigerian citizens.
“Instead of piling more debt on Nigerians – especially with no concrete evidence that previous loans have led to meaningful infrastructure improvements- we’re asking the President to look inward,” said SERAP’s Deputy Director, Kolawole Oluwadare. “The government must address the allegations of fraud, mismanagement, and waste within NBET and the wider power sector.”
Debt Concerns Rising
Nigeria’s rising public debt remains a point of concern among economists and civil society groups. As of late 2024, Nigeria’s total public debt stood at over N97 trillion, with external borrowing accounting for a substantial chunk. Critics argue that continued borrowing, especially without strict oversight, risks plunging the country deeper into a debt trap with minimal returns for ordinary Nigerians.
The World Bank loan in question is expected to support power sector reforms, but SERAP contends that such reforms have repeatedly failed due to lack of political will, institutional accountability, and credible enforcement mechanisms.
A Test for Tinubu’s Reform Agenda
This development poses a credibility test for President Tinubu’s administration, which came into power promising to revamp Nigeria’s economic outlook, clamp down on corruption, and promote efficiency in public institutions.
Analysts say that how the government responds to this call could send a strong message – either that the administration is serious about financial accountability or that it is willing to look the other way when powerful institutions are involved.
At the time of filing this report, the Presidency had yet to officially respond to SERAP’s petition.
The Bigger Picture
Beyond the current controversy, the NBET case reflects a larger issue plaguing Nigeria’s public financial management system: opaque operations, poor auditing practices, and limited consequences for mismanagement. Until these systemic issues are addressed, critics argue, fresh loans – even with good intentions – may only perpetuate a cycle of debt and dysfunction.
