The Socio-Economic Rights and Accountability Project (SERAP) has given the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, seven days to account for $6.23 million allegedly diverted or unaccounted-for election funds and more than N1.63 trillion other public funds. This demand was made in a letter dated September 26 and signed by SERAP's Deputy Director, Kolawole Oluwadare. The letter cited findings from Volume II of the Auditor-General of the Federation's 2023 Annual Report, published on August 7.
The Auditor-General's report covered various transactions between January and December 2023 and identified several unaccounted-for funds. These include more than N1.25 trillion in unrecovered CBN intervention loans to state governments, N116.18 billion in loans to distressed and liquidated banks, and N262.86 billion disbursed under the Anchor Borrowers' Programme. Additionally, the report mentioned a $6.23 million payment linked to an alleged fraudulent election-funding request purportedly made by former President Muhammadu Buhari.
SERAP is demanding that Cardoso and the CBN provide details of beneficiaries of the intervention loans, amounts disbursed, and measures taken to recover the funds. The organization also wants an account of the N262.86 billion released under the Anchor Borrowers' Programme, including the number and identities of beneficiaries and participating "Anchors," amounts disbursed, utilization, monitoring arrangements, and recovery measures.
Regarding the dollar-denominated payment, SERAP asked the CBN to account for the $6.23 million reportedly spent following Buhari's purported request for election funding. The organization also requested that the CBN publish the findings of any internal investigation into the alleged fraud, including steps taken to recover the money and establish responsibility.
SERAP argued that the scale of the allegations requires urgent, independent, and transparent action, raising questions about the custody, expenditure, accounting, safeguarding, and recovery of public resources. The organization emphasized that the accountability of public institutions, including the CBN, is crucial to Nigeria's constitutional democracy.
The organization urged the CBN to identify those responsible for the affected funds, take appropriate disciplinary action, and 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. SERAP also called for an independent forensic reconciliation of the amounts identified by the Auditor-General.
According to SERAP, the CBN's institutional independence should not be interpreted as immunity from constitutional audit, statutory accounting requirements, public financial oversight, or investigation of credible allegations of financial misconduct. The organization cited provisions of the Nigerian Constitution and the CBN Act 2007 relating to accountability, financial reporting, auditing, and management of the bank's resources.
Key points
- SERAP demands CBN Governor account for $6.23m and N1.63trn public funds within 7 days.
- The funds include unrecovered CBN intervention loans, loans to distressed banks, and disbursements under the Anchor Borrowers' Programme.
- SERAP urges CBN to identify those responsible, take disciplinary action, and refer suspected criminal conduct to relevant authorities.
