The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) seven days to account for $6.23 million in allegedly diverted or unaccounted-for election funds and more than N1.63 trillion in other public funds. SERAP made the demand in a letter dated September 26, signed by its Deputy Director, Kolawole Oluwadare. The demand follows findings contained in Volume II of the Auditor-General of the Federation’s 2023 Annual Report.
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. The report also mentioned $6.23 million linked to an alleged fraudulent election-funding request purportedly made by former President Muhammadu Buhari.
SERAP urged the CBN Governor, Olayemi Cardoso, and the apex bank to provide details of beneficiaries of the intervention loans, amounts disbursed, and measures taken to recover the funds. The organization also demanded 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, utilisation, monitoring arrangements, and recovery measures.
On the dollar-denominated payment, SERAP asked the CBN to account for the $6.23 million reportedly spent following a purported request for election funding by Buhari. The organization also requested the publication of the findings of any internal investigation into the alleged fraud, including steps taken to recover the money and establish responsibility.
SERAP said the scale of the allegations required urgent, independent, and transparent action, arguing that they raised 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 a crucial pillar of Nigeria’s constitutional democracy.
SERAP further called for an independent forensic reconciliation of the amounts identified by the Auditor-General, involving relevant oversight and law-enforcement institutions where necessary. The organization also 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.
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 explanation for $6.23m and N1.63trn public funds from CBN within seven days.
- The funds allegedly diverted or unaccounted-for include intervention loans to state governments and loans to distressed banks.
- SERAP calls for urgent, independent, and transparent action to address the allegations.
