The Human and Environmental Development Agenda (HEDA Resource Center) has accused the World Bank Country office in Nigeria of engaging in practices that are considered illegal under Nigerian law, relating to borrowing and indebtedness.
HEDA argued that the loan of $800 million to the Nigerian government represents an indebtedness trap agenda for the nation and condemns the World Bank’s approach to addressing poverty alleviation in the country.
In a statement issued by the chairman of HEDA, Olanrewaju Suraju, he expressed his concerns over the loan intention.
Mr Suraju said the $800 million loan was a World Bank idea and agenda, not that of a government that has less than a month in office.
He added that the World Bank should assist Nigeria in building refineries instead of importing fuel into the country.
“As CSOs, we have no other duty than to condemn the loan, World Bank and the FG on this corruption perfection strategy of loan and poverty elongation tagged alleviation,” he said.
“The World Bank is supposed to get Nigeria out of fuel importation by assisting the country to make refineries work or build new refineries and get us out of importation of fuel. World Bank is only encouraging us to remain importation dependent and provide a market for countries selling refined petroleum to us. This loan is a trap and nothing more.”
HEDA noted that the 2007 Financial Responsibility Acts, prohibits any government agent or institution from borrowing for recurrent expenditure which is known to the World Bank, as a global financial institution.
Financial Responsibility Act 2007, Section 44 (1)(a) States that, “Government at all tiers shall only borrow for capital expenditure and human development, provided that, such borrowing shall be on concessional terms with low-interest rate and with a reasonable long amortisation period subject to the approval of the appropriate legislative body where the necessary.”
While, Section 44 (3) states that, “Non-compliance with the provisions of this section shall make the action taken an offence.”
HEDA expresses its concerns about the loan’s potential impact on Nigeria’s long-term economic stability and self-reliance.
The organisation urges the World Bank to reconsider its approach and prioritise investments that promote self-sufficiency, such as revitalising domestic refineries or constructing new ones, rather than perpetuating importation reliance.
The civil society asked the National Assembly to reject the presidential pleas for approval to obtain the loan as any approval will constitute a violation of the law properly enacted by the Assembly.
HEDA threatens to work collaboratively with other stakeholders to develop a strategy to evoke provisions of the law for the prosecution of all those associated with the violation of the FRA 2007 and other associated offences and promote genuine economic independence and prosperity for the Nigerian people.
