Socio-Economic Rights and Accountability Project (SERAP) has urged the
World Bank President Mr David Malpass “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, the Bank’s role in the implementation of
any funded electricity projects, and to identify and name any executed
projects, and Nigerian officials, ministries, departments and agencies
involved in the execution of such projects.”
The World Bank Board of Directors had last week approved $500m “to help
boost access to electricity in Nigeria and improve the performance of
the electricity distribution companies in the country.”
But in the application dated 6 February 2021, and signed by SERAP deputy
director Kolawole Oluwadare, the organization urged the Bank to “explain
the rationale for the approval of $500m to implement electricity
projects in the country, despite reports of widespread and systemic
corruption in the sector, 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.”
SERAP said: “This application is brought pursuant to the World Bank’s
Access to Information Policy, which aims to maximize access to
information and promote the public good. There is public interest in
Nigerians knowing about the Bank’s supervisory role and specifically its
involvement in the implementation of electricity projects, which it has
so far funded.”
According to SERAP, “The $500m is part of the over one billion dollars
available to Nigeria under the project titled: Nigeria Distribution
Sector Recovery Program. We would be grateful for details of any
transparency and accountability mechanisms under the agreement for the
release of funds, including whether there is any provision that would
allow Nigerians and civil society to monitor the spending of the money
by the government, its agencies, and electricity distribution
companies.”
SERAP also said: “Should the Bank fail and/or refuse to release the
information and documents as requested, SERAP would file an appeal to
the Secretariat of the Bank’s Access to Information Committee to
challenge any such decision, and if it becomes necessary, to the Access
to Information Appeals Board. SERAP may also consider other legal
options outside the Bank’s Access to Information framework.”
The letter copied to Shubham Chaudhuri, World Bank Country Director for
Nigeria, read in part: “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,
contribute to the greater public good, and enhance the Bank’s oft-stated
commitment to transparency and accountability.”
“The World Bank has been and continues to be involved in overseeing the
transfer, disbursement, spending of funds on electricity projects in
Nigeria. The Bank also reportedly approved a $750 million loan for
Nigeria’s electricity sector in June 2020 to cut tariff shortfalls,
protect the poor from price adjustments, and increase power supply to
the grid. As such, the World Bank is not a neutral party in this
matter.”
“SERAP is seriously concerned that the funds approved by the Bank are
vulnerable to corruption and mismanagement. 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, and to
reduce vulnerability to corruption and mismanagement.”
“SERAP also believes that the release of the requested information and
documents is of paramount important to the public interest in preserving
the legitimacy, credibility and relevance of the Bank as a leading
international development institution. The Bank ought to lead by example
in issues such as transparency and public disclosure raised in this
request.”
“It would also demonstrate that the Bank is willing to put people first
in the implementation of its development and governance policies and
mandates, as well as remove any suspicion of the Bank’s complicity in
the alleged mismanagement of electricity projects-related funds.”
“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.”
“The information requested is not affected by the “deliberative”
“corporate administrative matters” or “security and safety” exceptions
under the Policy. 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, and monitor how the
funds are being used.”
“SERAP’s report, titled: From darkness to darkness: How Nigerians are
paying the price for corruption in the electricity sector documents
widespread and systemic corruption in the electricity sector, and
reveals how about N11 trillion electricity fund was squandered by
successive administrations in Nigeria since the return of democracy in
1999.”
“This report raises specific questions of public interest, and the World
Bank ought to be concerned about how Nigerian authorities are addressing
reports of widespread and systemic corruption in the electricity sector,
and to seek some answers from the authorities on the problems.”
“However, as the report shows, the Bank’s funding of the electricity
sector has not resulted in corresponding access of Nigerians to regular
and uninterrupted electricity supply. Successive governments have failed
to provide access to regular and reliable electricity supply to millions
of the citizens despite budgeting trillions of naira for the power
sector.”
“Millions of Nigerians still lack access to free pre-paid meters.
Authorities continue to use patently illegal and inordinate estimated
billing across the country, increasing consumer costs, and marginalizing
Nigerians living in extreme poverty, disproportionately affecting women,
children and the elderly.”
SERAP therefore urged Mr Malpass to:
1. Disclose and release information and documents relating to
spending of funds approved and released to Nigeria between 1999 and 2020
to improve access to regular and uninterrupted electricity supply,
including copies of supervision reports, periodic reviews and other
appropriate reports on the Bank’s role in the spending and disbursement
of the funds, as well as specific projects on which the funds have been
spent;
2. Disclose implementation status and results and completion reports
on the electricity projects that the Bank has so far funded in Nigeria;
3. Disclose information on the of level of involvement of World Bank
in the implementation of electricity projects between 1999 and 2020;
4. Disclose information on agreements and the mechanisms the Bank is
putting in place to ensure transparency and accountability in the
spending of all funds on electricity projects in Nigeria;
5. Disclose the terms and conditions of all electricity projects
related funds that have been approved for Nigeria between 1999 and 2020