Group Drags Wike, governors to court over alleged failure to account for N5.9trn, $4.6bn loans, publish agreements

A Lagos-based rights group, the Socio-Economic Rights and Accountability Project (SERAP), has dragged the Minister of the Federal Capital Territory (FCT), Nyesom Wike, alongside governors of the thirty-six (36) states of the federation, to the Federal High Court, Abuja, over their alleged failure to account for N5.9 trillion and $4.6 billion loans obtained by their states and the FCT and to publish copies of the loan agreements, including details and locations of projects executed with the loans.

The FCT Minister and the governors were dragged to the Federal High Court following the disclosure last month by Governor Uba Sani of Kaduna State that the immediate past administration of Nasir El-Rufai left $587m, N85bn debt and 115 contractual liabilities, making it impossible for the states to pay salaries.

According to the suit marked FHC/ABJ/CS/592/2024, the human rights group is praying to the court to “direct and compel the governors and the FCT Minister to account for N5.9trn and $4.6bn loans obtained by their states and the FCT and to publish copies of the loan agreements, location of projects executed with the loans.”

The human rights group is further asking the court to “direct and compel the governors and Mr Wike to invite the Economic and Financial Crimes Commission 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.”

According to the suit, SERAP is insisting that it is in the public interest to grant the reliefs sought, adding that 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.

The group said, “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.

“Many states and the FCT are reportedly spending public funds which may include the loans obtained by them to fund unnecessary travels, buy exotic and bulletproof cars and generally fund the lavish lifestyles of politicians.

“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.”

SERAP further posited that “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.

“Transparency in the spending of the loans obtained by the states and FCT is fundamental to increase accountability, prevent corruption, and build trust in democratic institutions with the ultimate aim of strengthening the rule of law.”

The suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Kehinde Oyewumi and Ms Valentina Adegoke, read in part: “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.”

As of the time of filing this report, no date has been fixed for the hearing of the suit.

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