SERAP gives CBN 7 days to account for ‘diverted’ $6.23m, N1.63trn or face legal action

Part of the missing funds were election funds disbursed at the order of former President Muhammadu Buhari.

The irregularities were first cited in the 2023 audit report of the Auditor-General.

The Socio-Economic Rights and Accountability Project (SERAP) has given a seven-day ultimatum to the Central Bank of Nigeria (CBN) and its governor, Olayemi Cardoso, “to account for US$6.23 million in 'diverted election funds' and N1.63 trillion in public funds or face legal action.

In the notice letter signed by SERAP deputy director Kolawole Oluwadare dated September 26, the accountability advocacy organisation asked Cardoso and the CBN to account for the N262.86 billion disbursed under the Anchor Borrowers’ Programme, including the names and number of beneficiaries, the amounts disbursed, how the monies were utilised, monitoring arrangements and the recovery measures.

The election fund, SERAP clarified, was the US$6.23 million spent following a request for election funding by former President Muhammadu Buhari. The group asked the CBN and the governor to publish the findings of the internal investigation into the “fraud” and measures taken to recover the funds and establish responsibility.

“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,” SERAP said.

“These findings by the Auditor-General raise serious concerns about the management and accountability of public resources and potential violations of the Nigerian Constitution 1999 (as amended), national anti-corruption laws and Nigeria’s obligations under the UN Convention against Corruption.”

The findings involving public resources on the scale identified by the Auditor-General require credible investigation capable of establishing the facts, identifying responsibility and securing recovery where public funds have been unlawfully lost.

SERAP urges him (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.”

SERAP added that the blurriness of how these funds were disbursed and spent was spotted by the office of the Auditor-General between January and December 2023.

“The 2023 audited report of the Auditor-General reportedly found that the Central Bank of Nigeria (CBN) failed to recover over ₦1.2 trillion [₦1,252,095,444,724.82] in ‘CBN interventions loan granted to different states in 2023.

The Auditor-General fears that the money may have been ‘diverted to private purposes’ and recommends that the money be recovered and remitted to the treasury.

The CBN reportedly failed to ‘recover over ₦116 billion [₦116,179,000,000.00] of loans granted to distressed and liquidated banks.

The CBN also failed to ‘present its 2023 audited or draft Financial Statements and schedule of recoveries and outstanding balance against loans granted to distressed and liquidated banks to the audit team for scrutiny.’ The Auditor-General fears that the money may have been ‘diverted’.

The CBN reportedly ‘spent over ₦262 billion [₦262,859,473,249.81] on Anchor Borrowers’ Programme meant to support farmers to ensure food production in the country.’ However, ‘the money remains in the hands of some ‘Anchors,’ which could hamper the intended food-security objectives of the programme.

The CBN also ‘failed to provide the list and number of beneficiaries of the programme and the impact of the programme for audit assessment.’ The CBN had ‘failed to recover the money, which is quite a significant amount.’ The Auditor-General feared that the money may have been ‘diverted to private purposes.

The CBN reportedly failed to ‘investigate an alleged fraud at its Abuja Branch Office, amounting to over 6.2million [6,230,000.00].’ The CBN internal audit disclosed that the money was spent based on a request for election funding purportedly made by the immediate past President of Nigeria [Muhammadu Buhari].

However, the CBN failed to make the investigation report of the alleged fraud available to the audit team for scrutiny and confirmation.’ The Auditor-General fears that the money may have been ‘lost’ and that the payments may have been ‘fraudulent.’ He wants the money recovered and remitted to the treasury.”

Over the years, INEC's hefty budget has raised concerns among Nigerians who question how the billions of naira allocated to the commission were spent. Ahead of the 2027 general elections, INEC submitted a budget of N873.78 billion, which is the biggest in Nigeria's history and far greater than the ₦355.3 billion spent in the 2023 general election.

By Akinjide Adebowale