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  • SERAP Drags FG to Court Over ‘$25bn Overdraft Taken From CBN’

    SERAP Drags FG to Court Over ‘$25bn Overdraft Taken From CBN’

     

    The Socio-Economic Rights and Accountability Project (SERAP) says it has filed a lawsuit, asking the court “to compel the federal government to disclose details of a $25 billion (N9.7trn) overdraft reportedly obtained from the Central Bank of Nigeria (CBN).

     

    In a statement on Sunday, Kolawole Oluwadare, SERAP’s deputy director, said the group also asked the court to ask the government to disclose spending details of the overdrafts and loans obtained from the apex bank since May 29, 2015.

     

    Oluwadare said the suit followed SERAP’s freedom of information (FoI) request to President Buhari to disclose the overdraft and repayment plan details.

     

    He added that 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.

     

    “Transparency and accountability in the spending of CBN overdrafts would also ensure that public funds are properly spent, reduce the level of public debt, and improve the ability of the government to invest in essential public goods and services, such as quality education, healthcare, and clean water,” SERAP said in a statement.

     

    “It is the primary responsibility of the government to ensure public access to these services in order to lift millions of Nigerians out of poverty and to achieve the Sustainable Development Goals by 2030.

     

    “Transparency and accountability in the spending of CBN overdrafts and loans would also improve the ability of the government to effectively respond to the COVID-19 crisis. This means that the government would not have to choose between saving lives or making debt payments.

     

    “The recent overdraft of $25.6bn (about N9.7trn) reportedly obtained from the CBN would appear to be above the five-percent limit of the actual revenue of the Federal Government for 2020, that is, N3.9trn, prescribed by Section 38(2) of the CBN Act 2007. SERAP notes that five-percent of N3.9trn is N197bn.

     

    “While Section 38(1) of the CBN Act allows the Bank to grant overdrafts to the Federal Government to address any temporary deficiency of budget revenue, sub-section 2 provides that any outstanding overdraft ‘shall not exceed five-percent of the previous year’s actual revenue of the Federal Government.”

     

    “Similarly, Section 38(3) requires all overdrafts to ‘be repaid as soon as possible and by the end of the financial year in which the overdrafts are granted.’”

     

    SERAP said Abubakar Malami, the attorney general of the federation and minister of justice, Zainab Ahmed, minister of finance, budget and national planning, and Godwin Emefiele, CBN governor, are joined in the suit.

     

    The anti-corruption group said the court actions are brought in the public interest and in line with the Nigerian Constitution, the freedom of information act, the fiscal responsibility act, the Central Bank Act; the Debt Management Office Act; and the country’s international legal obligations.

     

    No date has been fixed for the hearing of the suit.

  • Don’t Blame Nigerians For Transparency Ranking, SERAP Tells Buhari

    Don’t Blame Nigerians For Transparency Ranking, SERAP Tells Buhari

    The Socio-Economic Rights and Accountability Project, SERAP has urged President Muhammadu Buhari to take full responsibility for Nigeria’s poor ranking on Transparency International’s Corruption Perception Index.

     

    The CPI placed Nigeria as the second most corrupt country in West Africa with Guinea Bissau in the first position.

     

    In reaction, SERAP, in a statement on Monday, advised the President to stop blaming Nigerians for the report, stressing that his regime should see the ranking as an opportunity to raise its game to fight grand corruption and end the legacy of impunity in the country.

     

    The statement said, “We urge the government of President Buhari to take full responsibility and stop blaming Nigerians for the country’s poor ranking in Transparency International’s Corruption Perception Index (CPI), published last week.

     

    “Rather than looking for excuses, blaming Nigerians and attacking Transparency International, the government should see the ranking as an opportunity to raise its game to fight grand corruption, and end the legacy of impunity of perpetrators in the country.

     

    “According to Transparency International’s report, the perception of corruption has worsened under President Buhari. The 2020 Index scored Nigeria 25 out of 100 and named the country the second most corrupt nation in West Africa, raking Nigeria 149 out of 180 countries.

     

    “TI’s findings correspond substantially with the reality of impunity of perpetrators, as shown for example, by the persistent failure to obey court judgments, such as the judgment of Justice Idris which ordered release of spending details of recovered stolen assets since 1999.

     

    “The Buhari government is still failing to implement critical reforms, ensure transparency in the spending of security votes, and to address widespread corruption in MDAs, as documented by the Office of the Auditor-General of the Federation.

     

    “Several former state governors accused of corruption are still not held to account. Yet, many of these governors continue to receive life pensions. Similarly, public officials still use political power to enrich themselves without considering the public good.

     

    “Authorities should take the report seriously and use it as an opportunity to raise their game in their efforts to rid our country of corruption and underdevelopment.

     

    “The government should obey court judgments, end life pensions for former state governors, stop corruption in security votes spending, and address corruption in MDAs, if Nigeria is ever going to improve on its global anti-corruption ranking.”