FINANCE

SERAP Demands Account Of $500m Failed Electricity Projects In Nigeria

<p>&nbsp&semi;<&sol;p>&NewLine;<p><em>SERAP Demands accountability in the &dollar;500m failed electricity projects in Nigeria<&sol;em><&sol;p>&NewLine;<p><strong><a href&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;">OpenLife Nigeria<&sol;a><&sol;strong> reports that Socio-Economic Rights and Accountability Project &lpar;SERAP&rpar; has urged the World Bank President Mr David Malpass &OpenCurlyDoubleQuote;to exercise the Bank’s prerogative to release archival records and documents relating to spending on all approved funds to improve access to electricity in Nigeria between 1999 and 2020&comma; the Bank’s role in the implementation of any funded electricity projects&comma; and to identify and name any executed projects&comma; and Nigerian officials&comma; ministries&comma; departments and agencies involved in the execution of such projects&period;”<br &sol;>&NewLine;The World Bank Board of Directors had last week approved &dollar;500m &OpenCurlyDoubleQuote;to help boost access to electricity in Nigeria and improve the performance of the electricity distribution companies in the country&period;”<br &sol;>&NewLine;But in the application dated 6 February 2021&comma; and signed by <strong>SERAP<&sol;strong> deputy director Kolawole Oluwadare&comma; the organization urged the Bank to &OpenCurlyDoubleQuote;explain the rationale for the approval of &dollar;500m to implement electricity projects in the country&comma; despite reports of widespread and systemic corruption in the sector&comma; and the failure of the authorities to enforce a court judgment ordering the release of details of payments to allegedly corrupt electricity contractors who failed to execute any projects&period;”<br &sol;>&NewLine;SERAP said&colon; &OpenCurlyDoubleQuote;This application is brought pursuant to the World Bank’s Access to Information Policy&comma; which aims to maximize access to information and promote the public good&period; There is public interest in Nigerians knowing about the Bank’s supervisory role and specifically its involvement in the implementation of electricity projects&comma; which it has so far funded&period;”<br &sol;>&NewLine;According to SERAP&comma; &OpenCurlyDoubleQuote;The &dollar;500m is part of the over one billion dollars available to Nigeria under the project titled&colon; Nigeria Distribution Sector Recovery Program&period; We would be grateful for details of any transparency and accountability mechanisms under the agreement for the release of funds&comma; including whether there is any provision that would allow Nigerians and civil society to monitor the spending of the money by the government&comma; its agencies&comma; and electricity distribution companies&period;”<br &sol;>&NewLine;SERAP also said&colon; &OpenCurlyDoubleQuote;Should the Bank fail and&sol;or refuse to release the information and documents as requested&comma; SERAP would file an appeal to the Secretariat of the Bank’s Access to Information Committee to challenge any such decision&comma; and if it becomes necessary&comma; to the Access to Information Appeals Board&period; SERAP may also consider other legal options outside the Bank’s Access to Information framework&period;”<br &sol;>&NewLine;The letter copied to Shubham Chaudhuri&comma; World Bank Country Director for Nigeria&comma; read in part&colon; &OpenCurlyDoubleQuote;SERAP believes that releasing the information and documents would enable Nigerians and civil society to meaningfully engage in the implementation of electricity projects funded by the Bank&comma; contribute to the greater public good&comma; and enhance the Bank’s oft-stated commitment to transparency and accountability&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;The World Bank has been and continues to be involved in overseeing the transfer&comma; disbursement&comma; spending of funds on electricity projects in Nigeria&period; The Bank also reportedly approved a &dollar;750 million loan for Nigeria’s electricity sector in June 2020 to cut tariff shortfalls&comma; protect the poor from price adjustments&comma; and increase power supply to the grid&period; As such&comma; the World Bank is not a neutral party in this matter&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;SERAP is seriously concerned that the funds approved by the Bank are vulnerable to corruption and mismanagement&period; The World Bank has a responsibility to ensure that the Nigerian authorities and their agencies are transparent and accountable to Nigerians in how they spend the approved funds for electricity projects in the country&comma; and to reduce vulnerability to corruption and mismanagement&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;SERAP also believes that the release of the requested information and documents is of paramount important to the public interest in preserving the legitimacy&comma; credibility and relevance of the Bank as a leading international development institution&period; The Bank ought to lead by example in issues such as transparency and public disclosure raised in this request&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;It would also demonstrate that the Bank is willing to put people first in the implementation of its development and governance policies and mandates&comma; as well as remove any suspicion of the Bank’s complicity in the alleged mismanagement of electricity projects-related funds&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;The information is also being sought to improve the ongoing fight against corruption in the country and the provision of regular and uninterrupted electricity supply to Nigerians as a fundamental human right&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;The information requested is not affected by the &OpenCurlyDoubleQuote;deliberative” &OpenCurlyDoubleQuote;corporate administrative matters” or &OpenCurlyDoubleQuote;security and safety” exceptions under the Policy&period; The information requested is crucially required for Nigerians to know how the funds released to the authorities to improve electricity supply in the country have been spent&comma; and monitor how the funds are being used&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;SERAP’s report&comma; titled&colon; From darkness to darkness&colon; How Nigerians are paying the price for corruption in the electricity sector documents widespread and systemic corruption in the electricity sector&comma; and reveals how about N11 trillion electricity fund was squandered by successive administrations in Nigeria since the return of democracy in 1999&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;This report raises specific questions of public interest&comma; and the World Bank ought to be concerned about how Nigerian authorities are addressing reports of widespread and systemic corruption in the electricity sector&comma; and to seek some answers from the authorities on the problems&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;However&comma; as the report shows&comma; the Bank’s funding of the electricity sector has not resulted in corresponding access of Nigerians to regular and uninterrupted electricity supply&period; Successive governments have failed to provide access to regular and reliable electricity supply to millions of the citizens despite <a href&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;">budgeting trillions<&sol;a> of naira for the power sector&period;”<br &sol;>&NewLine;&OpenCurlyDoubleQuote;Millions of Nigerians still lack access to free pre-paid meters&period; Authorities continue to use patently illegal and inordinate estimated billing across the country&comma; increasing consumer costs&comma; and marginalizing Nigerians living in extreme poverty&comma; disproportionately affecting women&comma; children and the elderly&period;”<&sol;p>&NewLine;

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