The Alliance on Surviving Covid-19 and Beyond, chaired by human rights lawyer Femi Falana (SAN), has called for an immediate investigation into the alleged misappropriation of Nigeria’s $3.4 billion COVID-19 relief loan from the International Monetary Fund.
The demand follows the IMF’s confirmation that Nigeria has fully repaid the loan, with additional charges totaling N275.28 billion still outstanding.
In 2020, Nigeria secured the emergency funding through the IMF’s Rapid Financing Instrument to bolster healthcare, stabilize businesses, and cushion economic shocks from the pandemic and oil price crash. The IMF’s Executive Board approved the disbursement on April 28, 2020, with strict transparency conditions.
The IMF’s then-Deputy Managing Director, Mr. Mitsuhiro Furusawa, had emphasized: “Proper governance arrangements, including the publication and independent audit of crisis-mitigating spending and procurement processes [are needed] to ensure that the emergency funds were used for their intended purposes.”
However, a 2024 audit report by the Office of the Auditor-General revealed glaring irregularities. The document showed that on April 30, 2020, $2.4 billion was transferred to the CBN’s account at the Federal Reserve Bank of New York, while the remaining $1 billion went to the Bank of China. By June 1, 2020, these funds had been moved to the Bank for International Settlements and Industrial and Commercial Bank of China for investments—without proper authorization.
The audit found these transactions violated protocols, as the funds were reclassified as part of Nigeria’s external reserves and began earning interest, contrary to their emergency designation. It also uncovered that on August 7, 2020, the Finance Ministry requested $700 million for budget support. The CBN subsequently debited N265.65 billion using an inflated exchange rate (N379.5/$ vs official N360.5/$), distributing the funds as follows:
– N252 billion to COVID-19 Public Sector Account
– N13.3 billion to Forex Equalisation Account
– N350 million to Exchange Commission Account
A questionable 2 per cent commission was deducted from these funds despite their classification as federal property. Approximately $2.7 billion (N1.02 trillion) remains unaccounted for.
The Auditor-General’s report recommended that the CBN Governor:
1. Explain the unauthorized fund movements
2. Recover N13.3 billion and N350 million
3. Remit all investment interest
4. Sanction violators of financial regulations
Despite the report’s submission to the National Assembly, no legislative action has been taken—a situation ASCAB describes as unconstitutional under Section 85(5).
In its statement, ASCAB demanded:
– Immediate EFCC/ICPC investigations into the alleged diversion
– An IMF probe into fund mismanagement
– Suspension of N275.28 billion in pending charges until investigations conclude
“We call on the IMF Board to probe the deliberate refusal of its Management to ensure that the emergency funds were used for their intended purposes,” ASCAB stated.
The group warned that failure to investigate would perpetuate impunity in public finance management and undermine Nigeria’s ability to secure future emergency funding.
