The Socio-Economic Rights and Accountability Project (SERAP) has issued President Bola Tinubu a 7-day ultimatum to reject the approved $1.08 billion World Bank loan.

It said the government should should launch investigations into the allegations that over N233bn of public funds are missing, diverted or unaccounted for by the Nigerian Bulk Electricity Trading Plc and other ministries, departments and agencies (MDAs).

In a letter dated April 5, the group said those responsible for the financial discrepancies uncovered in the 2021 audited report by the Office of the Auditor General of the Federation should be prosecuted.

The World Bank loan approved last week is intended to improve education, nutrition, and community resilience across Nigeria.

However, SERAP insisted that accepting the loan would be irresponsible given the country’s mounting debt burden and failure to address internal financial mismanagement.

It said: “The World Bank loan is neither necessary nor in the public interest. “Especially given the country’s crippling debt burden and staggering amount of missing public funds from MDAs that your government has failed to probe or recover.”

The group said rather than accumulating more debt, the government should prioritise the recovery of the missing N233 billion and channel it into bridging the 2025 budget deficit and easing the debt crisis.

SERAP said: “The Federal Government should not collect any loan from the World Bank or any other institutions and agencies until the missing N233 billion is fully recovered, consistent with the 1999 Constitution (as amended) and the country’s international obligations.

“SERAP is seriously concerned that the Federal Government and 36 states and the Federal Capital Territory (FCT) continue to face a debt crisis, and vicious debt cycles or in debt distress or at high risk of debt distress.”