Renowned lawyer Femi Falana (SAN), has urged President Bola Tinubu “to direct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, (SAN), and appropriate anti-corruption agencies to promptly probe the allegations that $3.4 billion loan obtained from the International Monetary Fund (IMF) is missing, diverted or unaccounted for”.
Recall that last week, the International Monetary Fund (IMF) confirmed that Nigeria has fully repaid the $3.4 billion emergency COVID-19 loan it received in 2020 under the Rapid Financing Instrument, (RFI).
According to Falana, who is the Chair, Alliance on Surviving Covid-19 and Beyond (ASCAB), while the principal has been cleared, Nigeria is still liable for scheduled charges—net charges, basic interest, and administrative fees—amounting to SDR 125.99 million, or roughly N275.28 billion at the current exchange rate.
In an issued statement at the weekend, Falana sated that: “Recall, in response to the devastating economic impact of Covid-19, Nigeria sought emergency financial assistance of $3.4 billion—equivalent to 100% of its IMF quota. The loan, approved by the IMF Executive Board on April 28, 2020, was meant to stabilize Nigeria’s healthcare system, protect jobs and businesses, and mitigate the economic shock caused by both the pandemic and a steep drop in oil prices. The funds were also intended to help prevent a further depletion of the country’s foreign reserves.
“At the time, the IMF’s Deputy Managing Director and Acting Chair, Mr. Mitsuhiro Furusawa, emphasized the importance of transparent use of the emergency financing, noting that proper governance arrangements—including publication and independent audits—were essential to ensure the funds served their intended purpose.
“However, contrary to this directive, the IMF, which jointly influences Nigeria’s economic policies alongside the Federal Government, failed to enforce these governance standards.
The statement further said, “A 2020 audit by the Office of the Auditor-General of the Federation, released in January 2024, uncovered serious irregularities. According to the report, on April 30, 2020, $2.4 billion of the loan was moved to the Central Bank of Nigeria (CBN)’s account at the Federal Reserve Bank of New York, while the rest was deposited in the CBN’s account at the Bank of China in Shanghai. By June 1, these funds had been transferred to the Bank for International Settlements (BIS) and the Industrial and Commercial Bank of China (ICBC), respectively, for short-term investments.
“The audit found these transactions lacked documented approvals from the Federal Government or the CBN’s Investment Committee. Worse still, the funds were reclassified as part of the CBN’s external reserves instead of being used for emergency pandemic relief. This reclassification enabled the CBN to earn interest from the investments—directly contradicting the emergency purpose of the loan.
“The report further revealed that on August 7, 2020, the Federal Ministry of Finance requested that $700 million be monetized to support the 2020 federal budget. Just a week later, the CBN approved a debit of ₦265.65 billion at an exchange rate of ₦379.5/$—significantly above the official rate of N360.5/$ at the time. These funds were distributed into three accounts: ₦252 billion to the Covid-19 Public Sector Account, ₦13.3 billion to the Forex Equalisation Account, and ₦350 million to the Exchange Commission Account. A 2% commission was deducted despite the funds being federal property.
By the end of 2020, an unmonetized balance of $2.7 billion—equivalent to about ₦1.02 trillion—remained unaccounted for. The Auditor-General called on the CBN Governor to explain the movement and classification of the funds, to submit bank statements verifying the unmonetized balance, and to remit all earned interest to the Federal Government. The report also recommended recovery of the misappropriated ₦13.3 billion and ₦350 million, and warned that those responsible should face sanctions in accordance with financial regulations.
Moreover, despite the Auditor-General’s submission of the 2020 report to both chambers of the National Assembly, neither the Senate nor the House of Representatives has taken steps to review it through the appropriate public accounts committees. This failure to act constitutes a violation of Section 85(5) of the Nigerian Constitution and suggests a deliberate attempt to cover up the diversion of the $3.4 billion loan and other public funds.
“In light of these findings, the Alliance on Surviving COVID-19 and Beyond (ASCAB) demands that the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) immediately investigate the apparent criminal diversion of this emergency loan.
“We also urge the IMF Executive Board to examine why its own management neglected to ensure compliance with its governance conditions for the loan. In the meantime, the IMF should suspend collection of the SDR 125.99 million in charges until its investigation is concluded”.
“Accountability is not optional—it is essential”, the statement emphasised.
