$25bn CBN overdraft: SERAP writes Buhari, seeks spending details

Socio-Economic Rights and Accountability Project (SERAP) has urged President Muhammadu Buhari to “provide spending details of the overdrafts and loans obtained from the Central Bank of Nigeria (CBN) by the Federal Government since May 29, 2015.

The overdrafts, according to SERAP, include the total overdrafts, the projects on which the overdrafts have been spent; repayment of overdrafts to date, as well as to clarify whether the $25 billion (N9.7 trillion) overdraft reportedly obtained from the CBN is within the five-percent limit of the actual revenue of the government for 2020.

The organisation also urged the president to “provide details of spending of overdrafts and loans obtained from the CBN by successive governments between 1999 and 2015.”

In the Freedom of Information request, dated March 6, and signed by SERAP Deputy Director, Kolawole Oluwadare, the organisation said: “Ensuring transparency and accountability in the spending of CBN overdrafts and loans would promote prudence in debt management, reduce any risks of corruption and mismanagement, and help the government to avoid the pitfalls of excessive debt.

“Disclosing details of CBN overdrafts and repayments would enable Nigerians to hold the government to account for its fiscal management and ensure public funds are not diverted, thereby improving the ability of your government to effectively respond to the COVID-19 crisis. This means the government would not have to choose between saving lives or making debt payments.

“The increasing level of public debt would threaten the ability of the government to invest in essential public goods and services, such as quality education, healthcare, and clean water. It is the primary responsibility of the government to ensure public access to these services to lift millions of Nigerians out of poverty and to achieve the Sustainable Development Goals by 2030.

“We would be grateful if the requested information is provided to us within 14 days of the receipt and/or publication of this letter. If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel your government to comply with our request.

“SERAP is concerned about the growing level of debts by the Federal Government, and the apparent lack of transparency and accountability in the spending of overdrafts and loans so far obtained from the CBN, as well as the repayments to date.”