The Minister of the Federal Capital Territory, Abuja, Nyesom Wike, along with several former governors, has been sued over loans they took while in office.
The lawsuit was filed by the Socio-Economic Rights and Accountability Project (SERAP) in the Federal High Court, Abuja.
The suit alleges the defendants failed to account for N5.9 trillion and $4.6 billion in loans obtained by the states under their jurisdiction and to publish copies of the loan agreements, including details and locations of projects executed with the loans.
The suit, according to SERAP Deputy Director Kolawole Oluwadare, came after Governor Uba Sani of Kaduna State disclosed last month that Nasir El-Rufai’s immediate past administration left $587 million, N85 billion in debt, and 115 contractual liabilities, making it impossible for the state to pay salaries.
The lawsuit, numbered FHC/ABJ/CS/592/2024, seeks the court to compel Wike and other implicated parties to account for N5.9 trillion and $4.6 billion in loans obtained by their states and the FCT and to publish copies of the loan agreements, location of projects executed with the loans.
SERAP also asked the court to “direct and compel the governors and Mr Wike to invite the Economic and Financial Crimes Commission [EFCC] and the Independent Corrupt Practices and Other Related Offences Commission [ICPC] to investigate the spending of all the loans obtained to date by their states and the FCT.”
“It is in the public interest to grant the relief sought. Nigerians have the right to see and scrutinise the loan agreements and know the details of how the domestic and external loans obtained by the governors and FCT minister are spent,” SERAP argues.
According to SERAP, “opacity in the spending of the loans obtained by the governors and Mr Wike would continue to have negative impacts on the fundamental interests of the citizens.”
SERAP stated that many states and the FCT are reportedly spending public funds, including loans obtained by them, to fund unnecessary travel, buy exotic and bulletproof cars, and generally fund politicians’ lavish lifestyles.
“Many states and the FCT are also allegedly mismanaging public funds, which may include domestic and external loans obtained from bilateral and multilateral institutions and agencies,”
“Many states and the FCT reportedly owe civil servants’ salaries and pensions. Several states are borrowing to pay salaries. Millions of Nigerians resident in the state and FCT continue to be denied access to basic public goods and services such as quality education and healthcare.”
In the lawsuit, the group stated that transparency in the spending of loans obtained by states and the FCT is critical to increasing accountability, preventing corruption, and building trust in democratic institutions, all with the ultimate goal of strengthening the rule of law.
The suit, filed on behalf of SERAP by its lawyers Kolawole Oluwadare, Kehinde Oyewumi, and Valentina Adegoke, stated that “states and the FCT should be guided by transparency and accountability principles and proactively account for the loans obtained and publish copies of the loan agreements.
“Widely publishing copies of the loan agreements and spending details of the loans obtained would ensure that persons with public responsibilities are answerable to the people for the performance of their duties in the management of public funds.
“State governors and Mr Wike cannot hide under the excuse that the Freedom of Information Act is not applicable to their states and the FCT. The legal obligations to publish the information sought are also imposed by the provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights.”
“According to Nigeria’s Debt Management Office, the total public domestic debt portfolio for the country’s 36 states and the Federal Capital Territory is N5.9 trillion. The total public external debt portfolio is $4.6 billion.”
However, no date has been fixed for the hearing of the suit.