The Socio-Economic Rights and Accountability Project has initiated a legal action against President Bola Tinubu’s administration due to the administration’s failure to disclose details on the expenditure of loans acquired by the governments of former presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan, and Muhammadu Buhari.
This lawsuit targets the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Debt Management Office.
Filed last Friday at the Federal High Court in Lagos under suit number FHC/L/CS/353/2024, SERAP requests the court to “direct and compel the Tinubu government to publish the loan agreements obtained by the governments of former presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan and Muhammadu Buhari.”
Additionally, SERAP demands that the court “direct and compel the Tinubu government to publish the spending details of any such loans, including the interests and other payments so far made on the loans.”
SERAP’s position is grounded in the belief that “No one should be able to pull curtains of secrecy around decisions on the spending of public funds which can be revealed without injury to the public interest. Democracy requires accountability and accountability requires transparency.” The organization insists that “The Tinubu government should make it possible for citizens to have access to the agreements and spending details to judge whether their government is working for them or not.”
SERAP emphasizes the need for this transparency by noting that despite the numerous loans taken by successive governments, many Nigerians still suffer from extreme poverty and lack essential public services. They argue, “Nigerians’ right to a democratic governance allows them to appreciably influence the direction of government, and have an opportunity to assess progress and assign blame.”
The lawsuit, filed by SERAP’s lawyers Kolawole Oluwadare and Andrew Nwankwo, states: “Publishing the loan agreements would improve public accountability in ministries, departments and agencies (MDAs).” It asserts, “Nigerians are entitled to information about what their government is doing in their name. This is part of their right to information.”
Further, they argue, “Publishing the agreements and spending details would allow the public to see how and on what these governments spent the loans and foster transparency and accountability.” They maintain that making these loan agreements public would empower Nigerians to scrutinize the agreements and demand accountability for how the loans were spent.
SERAP also provides context on Nigeria’s debt situation: “According to Nigeria’s Debt Management Office, the total public domestic debt portfolio for the country is N97.3 trillion ($108 billion). The Federal Government’s debt is N87.3 trillion ($97 billion).” They highlight the significant interest payments on these loans over the years: $6.2 billion in 2019, $6.5 billion in 2018, $5 billion in 2017, $4.4 billion in 2016, and $5.5 billion in 2015.
The organization suggests that “Substantial parts of the loans obtained by successive governments since the return of democracy in 1999 may have been mismanaged, diverted or stolen, and in any case remain unaccounted for.” They argue that “Persons with public responsibilities ought to be answerable to the people for the performance of their duties including the management of the loans obtained between May 1999 and May 2023.”
SERAP insists that the Tinubu administration has a duty to ensure transparency and accountability regarding federal loans to mitigate risks of corruption and mismanagement. They cite various legal frameworks supporting their demand for transparency: “The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including to copies of the loan agreements obtained by successive governments since 1999.”
The legal filing concludes that under these legal provisions, “there are transparency obligations imposed on the Tinubu government to widely publish the agreements and details of the projects on which the loans were spent.” The principles underlying the Nigerian Constitution, the Freedom of Information Act, and Nigeria’s anti-corruption and human rights commitments, affirm that citizens should have access to information on their government’s activities.
No date has been set for the hearing of the suit.
