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SERAP Asks World Bank to Suspend Loan Nigeria’s 36 States

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Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank to suspend loans to Nigeria’s 36 states until previous ones are accounted for.

SERAP Asks World Bank to Suspend Loan Nigeria’s 36 States

 

This is due to recurring allegations of mismanagement of public funds by state governors, including loans which may have been obtained from the World Bank,

This is contained in a letter addressed to Mr Ajay Banga, president of World Bank, and signed by Kolawole Oluwadare, deputy director, SERAP at the weekend.

According to the body, many of the country’s 36 states are allegedly mismanaging public funds which may include loans obtained from the Bank and its partners, and allocations from the Federal Government, which may also include loans obtained from the Bank.

SERAP: “The World Bank and its partners cannot continue to give loans and other funding to these states where there are credible allegations of mismanagement or diversion of public funds.”

“We are concerned that there is a significant risk of mismanagement or diversion of funds linked to the Bank’s investments in many of the country’s 36 states. It is neither appropriate nor responsible lending to give loans to these states only for the loans to be misspent.” SERAP said

The letter, read in part: “The World Bank’s lending and support for these states may create the impression of complicity in the allegations of mismanagement or diversion of public funds by the states which may include loans from the Bank and its partners, and federal allocations.

“We would consider the option of pursuing legal action should the World Bank fail or fail to implement the recommendations contained in this letter, and we may join the country’s 36 states in any such suit.

“According to Nigeria’s Debt Management Office, total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion. The Federal Government’s total public debt portfolio is N78.2 trillion.

“SERAP also urges you to demand expressed commitment from Nigeria’s 36 governors to address credible allegations of mismanagement or diversion of public funds in their states and provide guarantees that loans and funding from the Bank and its partners would not be used to fund the luxurious lifestyles of politicians.

“SERAP urges the Bank to send independent monitors to the 36 states to monitor the spending of the loans and other funding obtained from the Bank and its partners to remove the risks of mismanagement or diversion of public funds by these states.

“The World Bank currently has a portfolio of about $8.5 billion spread across the country. The Bank has also approved several loans and other funding facilities to the country’s 36 states including the recent $750 million credit line meant to the states carry out reforms to attract investment and create jobs.

“The accounts of Nigeria’s 36 states are generally not open to public scrutiny as many of them continue to refuse freedom of information requests seeking transparency and accountability in the spending of public funds.

“The World Bank and its partners need to make clear to Nigeria’s state governors that it would not tolerate any mismanagement or diversion of public funds by immediately suspending any pending loans and other funding to them until the allegations of mismanagement or diversion of public funds are investigated.

“The Bank has a legal responsibility to ensure that suspected perpetrators are brought to justice and that any mismanaged or diverted public funds are returned to the treasuries of the states.

“The World Bank has the legal obligations to observe and promote compliance with the Nigerian Constitution 1999 [as amended] and domestic laws including the Fiscal Responsibility Act of 2007.

“Nigeria’s total public debt stock, including external and domestic debts, increased to N46.25 trillion or $103.11 billion in the fourth quarter of 2022.

“Many states reportedly owe civil servants’ salaries and pensions. Several states are borrowing to pay salaries. Millions of Nigerians resident in these states continue to be denied access to basic public goods and services such as quality education and healthcare.

“Several state governors are also reportedly spending public funds which may include funding obtained from the Bank and its partners and allocations from the Federal Government to fund unnecessary travels, buy exotic and bulletproof cars and generally fund the lavish lifestyles of politicians.

“The country’s 36 states have reportedly spent N1.71tn on recurrent expenditures, including allowances, foreign trips, office stationery, and aircraft maintenance in the first nine months of 2023.

“In Abia State, the government reportedly spent N397,520,734.84 on ‘feeding and welfare’ and N223,389,889.84 on ‘refreshments and meals.’

“The Akwa Ibom State government has reportedly spent N92.54bn on allowances and social contributions, social benefits, travel and transport, utilities such as electricity chargers, Internet access charges, and on materials and supplies such as office stationery, drugs, laboratory and medical supplies, maintenance, training in the first two quarters alone.

“The government has also reportedly spent N10m on hosting/mobilisation of political associations and interest groups, and N841.83m on entertainment at meetings.

“The Adamawa State government has reportedly spent N40.90bn on non-salary expenditure as of the end of quarter three, 2023 including on furniture allowance, travel and training, domestic and foreign, office stationery and consumables, and refreshments and meals.

“The Anambra State government also reportedly spent N15.17bn frivolous items, as of the end of quarter two, 2023. While Bauchi State government reportedly spent N70.25bn on frivolous items, Bayelsa State government spent N58.26 on travel, welfare packages, burial logistics, meeting expenses, ‘praise night/thanksgiving expenses’, and ‘marriage ceremony support’.

“In Lagos State, N440,750,000 was reportedly awarded to the Office of the Chief of Staff for the “procurement of a brand new bullet-proof Lexus LX 600 for use in the pool of the Office of Chief of Staff.” Some N2bn was also reportedly budgeted to buy rechargeable fans, rechargeable lights and fridge in the Office of the Deputy Governor.

“The Benue State government reportedly spent N34.44bn on ‘special day celebrations’ ‘welfare packages’, ‘security votes’, and materials and supplies such as office stationery, and books.

“According to reports, Borno, Cross Rivers, Delta, Ebonyi states also respectively spent N32.63bn, N43.71bn, N152.15bn, N30.91bn, and N41.11bn on frivolous items and the public funds may have been mismanaged or diverted.

“Ekiti State reportedly spent N31.33bn on local and international travel and transport, miscellaneous such welfare packages, refreshments, honorarium and sitting allowances. According to reports, both Enugu and Gombe states respectively spent N33.36bn and N24.73bn on frivolous items and the public funds may have been mismanaged or diverted.

“Imo State government reportedly spent N58.21bn on refreshments and meals, welfare packages, and other allowances. Jigawa State reportedly spent N49.64bn on transport and travelling, materials and supplies including drugs, vaccines, medical supplies, and stationeries.

“According to reports, Kaduna, Kano, Katsina, Kebbi, Kwara and Kogi states also respectively spent N27.87bn, N17.79bn, N40.49bn, N24.51bn, N41.19bn, and N58.02bn on frivolous items and the public funds may have been mismanaged or diverted.

“Section 41 of the Fiscal Responsibility Act provides: ‘Government at all tiers shall only borrow for capital expenditure and human development.’

“Section 44 of the Fiscal Responsibility Act provides: ‘Any Government in the Federation or its agencies and corporations desirous of borrowing shall, specify the purpose for which the borrowing is intended and present a cost-benefit analysis, detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied.’

“Under Section 45, ‘All banks and financial institutions shall request and obtain proof of compliance with the provisions of this Part before lending to any Government in the Federation. 2) Lending by banks and financial institutions in contravention of this Part shall be unlawful.’

“The World Bank and its partners have obligations under international anticorruption and human rights law, including a responsibility to promote transparency and accountability in the management of public funds, prevent mismanagement or diversion of public funds, and redress any abuse of public trust that they may have contributed to.

“As a UN specialized agency, the World Bank also has an obligation to promote transparency and accountability in the management of public resources and effective implementation of the UN Convention against Corruption to which Nigeria is a state party.

“The World Bank’s board of executive directors also has an obligation to ensure that the policies and decisions of the Bank are consistent with their own statutes and governments’ transparency and accountability obligations.”

 

 


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RMRDC Urges Investors to Patronise Research Outputs, Embrace Domestic Resource Based Manufacturing

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The Raw Material Research and Development Council (RMRDC) is wooing Nigerian investors to patronise its research outputs by embracing domestic resource based manufacturing that would end Nigeria’s industrial dependency.

The RMRDC made at the Nigeria Manufacturing and Equipment/Nigerian Raw Materials (NME/NIRAM) Expo 2025 through its Director Agricultural and Agro Allied Raw Materials Department, Raw Material Research and Development Council (RMRDC), Dr. Sab C. Ebiriekwe, and the Managing Director of Jola Global Industries Limited, Dr. Moses Omojola, who was formerly a director with RMRDC.

They pointed out that the Nigerian manufacturing sector is relying on importation for over 75 per cent of its industrial inputs while about 80 per cent of manufacturing firms in Nigeria are owned by foreigners.

Ebiriekwe said in his presentation titled “Harnessing Local Resources: Enhancing Value Addition Through Innovation in Raw Material Sourcing” that Nigeria is grappling with industrial dependency despite being endowed with vast natural resources, adding that no country industrialises sustainably without local raw material transformation through innovation.

He said that despite the abundance of local raw materials, only 35 per cent of local manufacturers in Nigeria could rely on steady access to local raw materials.

He added that a gap exists between research outcome and practical application as “only 5.0 per cent of research outputs reach commercialisation.”

According to him, Nigeria’s failure to beneficiate and industrialise its raw material is hindering its bid for economic diversification, jobs creation and export competitiveness.

“As value of industrial raw material imported in 2023 was N2.41 trillion; share of imported manufacturing inputs are over 75 per cent and non-oil export is dominated by unprocessed raw/agro products.”

Omojola, who retired as a director with RMRDC, said during the panel session that about 80 per cent of industries in Nigeria are owned by foreigners, especially Asians.

He asked: “How come Nigerians are going into manufacturing? I have lectured in the university and have worked in RMRDC for 25 years but I told myself that it will be disservice to leave RMRDC without taking home one project. And to the glory of  God I am today a manufacturer in Ekiti State.”

According to him, manufacturing “is very stressful but more rewarding,” which is the reason Asians are coming to Nigeria? “When I ask my Asian friends why they are in Nigeria they will reply that Nigeria is good. And now that I have started manufacturing, I have known that Nigeria is good,” he said.

Omojola also challenged politicians to invest the money they have made from politics into manufacturing in order to create more jobs in the economy.

“We should be going into resource based industry. I produce vegetable oil. Today, Indonesia and Malaysia cannot bring in vegetable oil into Nigeria because our own price is cheaper than their own. Therefore, no imported vegetable oil can compete with us,” he said.

The Founder of AfricanFarmer Discovery Hub, Mr. AfricanFarmer Mogaji, said that chemical extracted from water leaf had been used to coat mugs by Oluwa Glass in Ondo State.

“That was innovation. But unfortunately, it was not scaled. In Ibadan, the shell of the cashew nut had been used in making brake pads. We can revisit these innovations at Small and Medium Enterprises (SMEs) level,” Mogaji said.

He also urged retire military generals to invest in manufacturing like their counterparts in Malaysia that funded Malaysia’s turn around.

However, the Managing Director of Spectra Industries Limited, Mr. Duro Kuteyi, said that absence of government’s policies that could protect the SMEs is one of the reasons Nigerians are not going into manufacturing.

Kuteyi said: “Unless government will come up with policy the way India is protecting its products and SMEs, it will take time for us to grow.

“I started using Nigerian raw materials to make products like natural cocoa powder that is good for diabetics, hypertension, etc. We also use soya as one of our basic raw materials.

“But as it is currently, SMEs are finding it difficult in the market place where they are competing with multinationals that are ready to kill them and kill them totally.

“A multinationals firm went to the market and offered generators to my customers to stop dealing on my products.”

The Managing Director of FACCO West Africa, Mr. Femi Adelayo, said that wealthy Nigerians should be encouraged to embrace manufacturing rather than buying houses in Dubai.

Adelayo also said that manufacturers should be supported with a holistic robust policy to ensure their survival and enable Nigeria to withstand the emerging global trade dynamics that is being characterised by punitive tariffs.

He appealed to the RMRDC to help his livestock feed manufacturing firm with raw materials that could substitute for maize and soya. He said: “We work in the feed mill industry where we produce livestock feeds. But maize and soya are major challenges. We will like RMRDC to help us to have alternative protein production.”


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Zinox Chairman Leo Stan Ekeh Donates State-of-the-Art Tech Experience Centre to Federal University Birnin Kebbi

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Federal University Birnin Kebbi (FUB) received a significant boost in its quest to produce globally competitive graduates, following the donation of a multimillion-naira Tech Experience Centre by the Leo Stan Ekeh Foundation (LSEF).

The facility, donated by Mr. Leo Stan Ekeh, Chairman of Zinox Group and Founder of LSEF, was commissioned on his behalf by the President of the Nigeria Computer Society (NCS), Dr. Muhammad Sirajo Aliyu, FNCS.

The centre is equipped with the latest Zinox computers, powered by the iPower renewable energy suite, which features high-performance solar panels and certified lithium batteries. It is also connected to a 24-hour, non-disruptive satellite internet service powered by Starlink, a service that the LSEF has committed to funding for the next five years.

According to Mr. Ekeh, the Tech Experience Centre is dedicated to the use of students and knowledge workers at FUB, with the aim of equipping them with the digital skills and resources required to compete with their peers globally and contribute meaningfully to Nigeria’s economic development.

This centre is one of several cutting-edge technology hubs donated by the Leo Stan Ekeh Foundation to tertiary institutions across Nigeria. It supports the Federal Government’s vision to upgrade the nation’s higher institutions to world-class standards.

For over 25 years, Mr. Ekeh and the Zinox Group have consistently invested in promoting digital education by donating tech laboratories and innovation hubs. In recent years, the Foundation has delivered and equipped centres at St. Augustine University, Lagos, and Imo State University and refurbished older facilities it had donated in the past. According to Mr. Ekeh, the next phase will see the Foundation extend similar interventions to secondary schools across the country.

He called on politicians, government agencies, and wealthy Nigerians to intentionally invest in the nation’s education sector, stressing that a well-educated populace is the Foundation for national development.

Mr. Ekeh expressed his appreciation to the Chairman of the University Council, the council members, Vice Chancellor Professor Muhammad Zaiyan Umar, members of the University Management, staff, and students of FUB, as well as the Honourable Minister of Education, Dr. Tunji Alausa, for their support in accommodating the LSEF’s vision.

Speaking on behalf of the university, Professor Muhammad Zaiyan Umar, Vice Chancellor of FUB, expressed deep appreciation to Mr. Ekeh and the LSEF for the generous donation.

“This Tech Experience Centre will make a remarkable difference in the academic and research output of our students and staff. We are grateful for Mr. Ekeh’s vision, generosity, and long-standing contributions to this institution and to digital education in Nigeria. This facility is more than a building with computers; it is an investment in the future of our graduates and the growth of our nation.”

Speaking on the sidelines of the commissioning, Mr. Chimezie Orisakwe, Head of Corporate Communications for the Zinox Group, highlighted Mr. Ekeh’s sustained promotion of digital learning across Nigeria — from interventions in the media sector to landmark projects with the media, Independent National Electoral Commission (INEC), the National Population Commission (NPC), and others.

He also highlighted Mr. Ekeh’s reflection on the current state of Nigeria’s education sector, warning that many institutions, both public and private, face severe funding deficits. This, he noted, raises the risk of closures, which would deprive graduates of the enduring legacy of their alma maters.

To address these challenges, the Zinox Chairman proposed that the Federal Government adopt a college system and reclassify existing universities. He recommended granting approvals for specialized professional colleges affiliated with reputable universities, similar to the Lagos University Teaching Hospital (LUTH) model with the University of Lagos.

Ekeh emphasized that the quality of an institution’s academic content now matters more than its physical size. Those passionate about establishing tertiary institutions must be focused on their core mission, be willing to invest adequately, and possess the mental and financial capacity to sustain standards.

He further urged that educational institutions be regulated even more stringently than banks, given their central role in producing the human capital that drives both the public and private sectors.

“Educational institutions are not limited liability companies that can be liquidated at will. Their true profit is not in short-term returns but in the quality of graduates they produce, men and women who can lead this nation and give back to the institutions that shaped them,” Ekeh stated.

The donation to FUB is the latest in a long list of interventions by the Zinox Group to support Nigeria’s technological advancement. Through the Leo Stan Ekeh Foundation, the Group has also funded thousands of scholarships, donated modern digital learning facilities nationwide, extended non-interest loans to budding entrepreneurs, and supported churches, hospitals, and humanitarian causes.


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No More Leaks: FIRS Slaps ₦5m Fine on Info Disclosure

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Nigeria Revenue Service (NRS) Act has introduced strict penalties for the unauthorised disclosure of confidential information and documents by its staff, with offenders facing fines of up to N5 million, imprisonment for up to three years, or both.

The NRS Act is one of four bills recently signed into law by President Bola Tinubu, alongside the Nigeria Tax (Fair Taxation) Law, the Nigeria Tax Administration Law, and the Joint Revenue Board (Establishment) Law. The regulations will take effect on January 1, 2026.

In Part VI of the NRS Act, covering miscellaneous provisions, the law designates all internal records—including institutional information, memoranda, and communications—as confidential.

“Without prejudice to the provisions of any other Act concerning data privacy or data protection, institutional information or communication, all internal information, communications, documents or memoranda of the Service are confidential,” the law states.

It further warns that, “Except as otherwise provided under this Act, any other law or any enabling agreement or arrangement or as otherwise authorised by the Executive Chairman or management of the Service, any person who discloses or attempts to disclose institutional information, communication, document or memorandum of the Service is liable on conviction to a fine not exceeding N5,000,000 or imprisonment for a term not exceeding three years or both.”

The provision applies to all officials and individuals involved in the administration of the Act. The NRS also specified that business records, tax returns, notices, assessments, and documents relating to a person’s assets, liabilities, or profits must be “treated as secret.”

Exceptions to the confidentiality rule include disclosures authorised by the service, those mandated by court order, or situations where the information is needed for the enforcement of Nigeria’s tax laws.

The development follows a February 20, 2024, warning from the federal government cautioning civil servants in ministries, departments, and agencies (MDAs) against leaking sensitive documents to the public.


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