The Socio-Economic Rights and Accountability Project (SERAP) has given the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, and the CBN seven days to account for US$6.23 million in allegedly diverted or unaccounted-for election funds and over ₦1.63 trillion in other public funds. This ultimatum was issued following the release of the Auditor-General of the Federation’s 2023 Annual Report, which documented grave allegations of financial mismanagement.
According to the 2023 audited report of the Auditor-General, the CBN failed to recover over ₦1.2 trillion in ‘CBN interventions loan granted to different states in 2023.’ The report also revealed that the CBN failed to recover over ₦116 billion in loans granted to distressed and liquidated banks. Furthermore, the CBN reportedly disbursed over ₦262 billion under the Anchor Borrowers’ Programme, but the funds remain in the hands of some ‘Anchors,’ which could hamper the intended food-security objectives of the programme.
The Auditor-General’s report also disclosed that the CBN allegedly spent US$6.23 million following a purported request for election funding by former President Muhammadu Buhari. However, the CBN internal audit reportedly disclosed an alleged fraud at its Abuja Branch Office, amounting to over $6.2 million. SERAP has urged Mr Cardoso and the CBN to account for these funds, including the names and number of beneficiaries and participating ‘Anchors,’ amounts disbursed, utilisation, monitoring arrangements, and any recovery measures.
SERAP has also urged Mr Cardoso and the CBN to identify those responsible for the affected public funds, take appropriate disciplinary action, refer suspected criminal conduct to the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), and other competent authorities, and ensure full recovery and remittance to the treasury of any diverted, lost or unaccounted-for funds.
The letter, signed by SERAP deputy director Kolawole Oluwadare, stated that the accountability of public institutions, including the CBN, is a crucial pillar of Nigeria’s constitutional democracy. The organisation emphasised that the magnitude and nature of these findings require urgent, independent, and transparent action, as they raise fundamental questions about the custody, expenditure, accounting, safeguarding, and recovery of public resources.
The CBN’s institutional independence cannot reasonably be understood as immunity from constitutional audit, statutory accounting requirements, public financial oversight, access to information, or investigation of credible allegations of financial misconduct. The CBN has clear legal obligations to account for each amount identified by the Auditor-General, explain the basis for each transaction, identify the persons or entities that received or benefited from the funds, and disclose measures taken to investigate, reconcile, and recover any amount found to have been improperly paid or lost.
The spending of public funds, including by the CBN, must remain subject to effective constitutional oversight, transparency, and accountability. The substantial public funds identified by the Auditor-General as unrecovered, unaccounted for, or otherwise requiring explanation cannot be insulated from constitutional safeguards. The public interest requires meaningful oversight of withdrawals, expenditure, investment, and accountability mechanisms, and the ongoing management of public funds by the CBN must remain transparent and subject to appropriate safeguards.
Key points
- - The CBN was given 7 days to account for allegedly diverted $6.23m election funds and ₦1.63trn other public funds. - The funds in question include over ₦1.25 trillion in unrecovered CBN intervention loans to state governments and ₦116.18 billion in unrecovered loans to distressed and liquidated banks. - The Socio-Economic Rights and Accountability Project (SERAP) issued the ultimatum following the release of the Auditor-General of the Federation’s 2023 Annual Report.
