The Alliance on Surviving Covid-19 and Beyond (ASCAB), chaired by renowned human rights lawyer Femi Falana (SAN), has called for an urgent investigation into the alleged criminal diversion of the $3.4 billion COVID-19 relief loan granted to Nigeria by the International Monetary Fund (IMF) under its Rapid Financing Instrument (RFI).
ASCAB’s demand follows the IMF’s recent confirmation that Nigeria had fully repaid the $3.4 billion loan, while additional scheduled charges, including net charges, basic interest, and administrative fees, amount to SDR 125.99 million, equivalent to N275.28 billion at the current exchange rate.
In the wake of the COVID-19 pandemic in 2020, Nigeria sought emergency financial assistance of $3.4 billion—equivalent to 100% of its quota with the IMF—to support its healthcare sector, stabilize businesses, and mitigate economic shocks caused by the pandemic and the global collapse in oil prices. The IMF’s Executive Board approved the emergency financing on April 28, 2020, with strict conditions for transparency and accountability in fund disbursement.
At the time, Mr. Mitsuhiro Furusawa, IMF’s Deputy Managing Director and Acting Chair, emphasized the importance of proper governance arrangements, including the publication and independent audit of crisis-mitigating spending and procurement processes to ensure that the emergency funds were “used for their intended purposes.”
Contrary to IMF’s stipulations, a 2020 audit report by the Office of the Auditor-General of the Federation, released in January 2024, uncovered massive irregularities. The report highlighted that on April 30, 2020, $2.4 billion of the loan was transferred to the CBN’s account at the Federal Reserve Bank of New York, while the remaining balance was moved to the CBN’s account at the Bank of China, Shanghai. By June 1, 2020, the $2.4 billion had been relocated to the Bank for International Settlements (BIS) for short-term investments, while the funds in China were similarly transferred to the Industrial and Commercial Bank of China (ICBC).
Shockingly, these transactions were reportedly unauthorized and unsupported by documentation from the Federal Government or the CBN’s Investment Committee. The audit further revealed that the funds were reclassified as part of the CBN’s external reserves, earning interest—contrary to their emergency relief designation.
The report also disclosed that on August 7, 2020, the Federal Ministry of Finance requested the monetisation of $700 million to support the federal budget. One week later, the CBN approved a debit of N265.65 billion, applying an exchange rate of N379.5/$ instead of the official rate of N360.5/$, and credited three separate accounts:
N252 billion to the COVID-19 Public Sector Account,
N13.3 billion to the Forex Equalisation Account,
N350 million to the Exchange Commission Account.
Additionally, a 2% commission was deducted from the monetised amount, despite the funds being categorized as Federal Government property. An unmonetised balance of $2.7 billion, approximately N1.02 trillion, remains unaccounted for according to the audit report.
The Auditor-General’s report urged the CBN Governor to explain the movement and reclassification of the funds without proper authorization. It also called for the recovery of N13.3 billion and N350 million into the Federal Government’s account, remittance of all interest earned from the investments, and sanctions for violations of financial regulations if accountability is not established.
Despite the submission of the 2020 Annual Report to both Houses of the National Assembly, there has been no legislative action to address the findings—a situation ASCAB describes as a cover-up of criminal diversion of public funds, contrary to Section 85(5) of the Nigerian Constitution.
ASCAB, in its statement, called on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the criminal diversion of the IMF loan. The group also demanded that the IMF Board launch a thorough investigation into the deliberate mismanagement of its emergency relief funds.
ASCAB further urged the IMF to suspend the collection of scheduled charges, including interest and administrative fees amounting to SDR 125.99 million (N275.28 billion), pending the outcome of its investigation.
“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,” the statement read.
