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$3.4 billion IMF COVID-19 loan diverted under Buhari – Falana *Demands prompt probe
Nothing but prompt probe by the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) into the alleged criminal diversion of the $3.4 billion loan obtained from International Monetary Fund (IMF) by Nigeria to fight the COVID-19 pandemic will satisfy Femi Falana, foremost Nigerian rights activist.
Falana, a Senior Advocate of Nigeria (SAN), who made his position known in a statement he signed on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB) on Sunday, also called on the IMF board to probe alleged deliberate refusal of its management to ensure that the emergency funds were “used for their intended purposes.”
He further urged the IMF to suspend the collection of the scheduled charges, including net charges, basic interest, and administrative fees, amounting to SDR 125.99 million (N275.28 billion) pending the conclusion of its investigation.
Falana spoke against the backdrop of last week’s announcement that the Fund confirmed that Nigeria had fully repaid the $3.4 billion COVID-19 financial support it got under the Rapid Financing Instrument (RFI).
However, records show that despite the country’s principal balance standing at zero, the scheduled charges, including net charges, basic interest and administrative fees, amount to SDR 125.99 million, which at the current exchange rate, tanslateds to approximately N275.28 billion.
Vexed by the situation, Falana wrote: “It is pertinent to recall that in the wake of the COVID-19 in 2030, Nigeria requested emergency assistance of about US$3.4 billion—equivalent to 100 percent of its quota from the International Monetary Fund to shore up the country’s economy and help businesses weather the storm of a deadly pandemic that disrupted global markets and plunged the world into a recession.
“At the meeting of the IMF Executive Board held on April 28, 2020, the financial support of $3.4 billion was approved to provide critical support to shore up Nigeria’s health care sector, and shield jobs and businesses from the shock of the COVID-19 crisis. In particular, the loan was designed to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices, and also help limit the decline in international reserves.
“Following the executive board’s discussion of Nigeria, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, stated that, ‘The emergency financing under the RFI will provide much needed liquidity support to respond to the urgent BOP needs. Additional assistance from development partners will be required to support the government’s efforts and close the large financing gap.
“The implementation of proper governance arrangements—including through the publication and independent audit of crisis-mitigating spending and procurement processes—is crucial to ensure emergency funds are used for their intended purposes (emphasis ours).
“Characteristically, the IMF management, which jointly manages the neocolonial economy of Nigeria with the Federal Government, failed to ensure emergency funds were used for their intended purposes.”
A 2020 audit report by the Office of the Auditor-General of the Federation, released in January 2024, which had flagged several irregularities in the handling of the fund, had observed 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 went to the CBN’s account at the Bank of China, Shanghai.
The report further stated that by June 1, the $2.4 billion had been moved to the Bank for International Settlements (BIS) for short-term investments. The funds in China were similarly transferred to the Industrial and Commercial Bank of China (ICBC).
Regarding the development, Falana, said: “These transactions, according to the audit, were not supported by documentation or approvals from the Federal Government or the CBN’s Investment Committee and that the funds were subsequently reclassified as part of the CBN’s external reserves rather than the Federal Government’s holdings. This reclassification, the report noted, allowed interest to be earned on the funds, contrary to the emergency spending purpose for which they were approved.
“Furthermore, the report stated that on August 7, 2020, the Federal Ministry of Finance requested the monetisation of $700 million to support the 2020 federal budget. One week later, the CBN approved a debit of N265.65 billion, applying an exchange rate of N379.5/$, higher than the official N360.5/$ rate at the time.
“The funds were credited to three separate accounts: N252 billion to the COVID-19 Public Sector Account, N13.3 billion to the Forex Equalisation Account, and N350 million to the Exchange Commission Account.
“The audit noted that a two percent commission was deducted from the monetised amount, even though the funds were categorised as Federal Government property. At the end of 2020, an unmonetised balance of $2.7 billion — equivalent to approximately N1.02 trillion — remained unaccounted for, according to the Auditor-General’s report.”
“The report recommended that the CBN Governor should explain the movement and classification of the funds without proper authorisation. It also requested bank statements to confirm the unmonetised balance and demanded the recovery of N13.3 billion and N350 million into the Federal Government’s account. It further called for the remittance of all interest earned from the investments and warned that sanctions under relevant financial regulations would be applied if there was no accountability.
“The Auditor-General wants the money recovered and remitted to the public treasury and for the evidence of remittance to be forwarded to the Public Accounts Committee of the National Assembly. The Auditor-General also recommended that anyone suspected to be involved should be sanctioned and handed over to the EFCC and ICPC for investigation and prosecution, as provided for in paragraph 3112 of the Financial Regulations.
“Even though the Auditor-General of the Federation submitted the 2020 Annual Report to each House of the National Assembly, both Houses have failed to cause the report to be considered by the committees responsible for public accounts, in order to cover up the criminal diversion of the $3.4 IMF and several trillions of Naira set out in the Auditor-General’s report, in utter contravention of section 85(5) of the Constitution of the Federal Republic of Nigeria as amended.
“In view of the foregoing, the Alliance on Surviving Covid-19 and Beyond (ASCAB) hereby calls on the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to investigate the criminal diversion of the $3.4 billion loan obtained by Nigeria to fight the Covid-19 pandemic.
“We also 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. Meanwhile, the IMF should suspend the collection of the scheduled charges, including net charges, basic interest, and administrative fees, amounting to SDR 125.99 million (N275.28 billion), pending the conclusion of its investigation.”
“He is running in contempt of the court. Justice Lifu should be arrested because he is acting in contempt of the court which is a criminal act,” were the exact words with which the African Democratic Congress (ADC), demonstrated its angst over the court ruling on Monday, ordering its de-registration as a political party in Nigeria.
A furious Bolaji Abdullahi, spokesman of the party, told his host while appearing as a guest on Monday’s edition of Politics Today, a public affairs programme on Channels Television that the judge of the Abuja Federal High Court who gave the order was actually playing with fire because of the consequences.
Directly accusing him of playing the script of the All Progressives Congress (APC), to ensure that President Bola Tinubu emerged the sole candidate for the 2027 presidential election, the party spokesman, was emphatic that the plan would not work, as head or tail, ADC must be on the ballot in all the elections.
Hear him: “There is a Court of Appeal order saying don’t hear this case until October 27. So, on what basis? You can’t place something on nothing. The Court of Appeal said don’t act on this until I hear it on October 27. So, on what basis did he deliver the judgement
“So, for us in the African Democratic Congress, what we’re convinced and they know is what they have done has no leg to stand on legally. What they want to do is to create doubts in the minds of the people that this ADC has too many legal cases, can we actually run on this? And to distract us. But we’re not distracted.
“We’re very clear. It was in spite of all they have done since ADC came on board that we ran one of the best and one of the most comprehensive direct primaries in the history of democracy in Nigeria. So, we are strong enough to withstand this. And that’s why I’m saying that we are going to contest in 2027. We’re ADC. We don’t buckle before dictatorship.”
Stressing on the implication of the judgement, which also affected Accord Party (AP), Action Peoples Party (APP), Action Alliance (AA), and Zenith Labour Party (ZLP) for allegedly failing to meet constitutional and electoral performance requirements, following a suit by the National Forum of Former Legislators, he said it portended grave danger.
He added: “We are not surprised. We know that the Nigerian people believe that there is a problem with the judiciary, but what we did not expect is the level of judicial rascality that was demonstrated today.
“What we are saying is that we reject it in its totality, and we are saying that the people behind this are playing with fire. Hundreds, if not thousands, have obtained nomination forms and contested elections and emerged as candidates on the platform of the ADC.”
Peter Obi, candidate of the Nigerian Democratic Congress (NDC), in the 2027 presidential election, is peeved at the decision of the Federal High Court, Abuja, ordering the de-registration of the African Democratic Congress (ADC), saying the move is a heavy blow and dangerous to Nigeria’s democracy.
Justice Peter Lifu, who made the order, based on an action brought by National Forum of Former Legislators, agreed that the parties, including Accord Party (AP), Action Peoples Party (APP), Action Alliance (AA), and Zenith Labour Party (ZLP), failed to meet the requirement for continued existence in Nigeria.
But Obi, who left the ADC coalition to join the NDC, incidentally, based on what he explained resulted from the multiple court cases hanging on its neck, expressed his disenchantment, in a statement by the Peter Obi Media Reach (POMR), on Monday.
Signed by Ibrahim Umar, its spokesman, the group quoted the former Governor of Anambra State as decrying the growing damage to the nation’s sacred institutions on the altar of politics.
Stressing that the rise of nations depended on stronger institutions devoid of political influences, the 2023 Labour Party presidential candidate, wrote on his X platform: “When the controversy surrounding the removal of the former Chief Justice of Nigeria, Walter Onnoghen, unfolded, I expressed a concern to a friend: that the greatest damage might not be immediate, but the message it sends about the sanctity and independence of our institutions to the world.
“Strong economies are built on trust. Investors can manage security risks, policy risks, and even market risks. What they fear most is uncertainty in the rule of law and a judiciary that is perceived to be vulnerable to political pressure.
“Today, many Nigerians have lost confidence in systems that should protect them. Businesses increasingly request that their contracts be governed by foreign jurisdictions because they have greater confidence in those institutions than in our own. That should concern every patriot.
“We must never sacrifice our sacred institutions on the altar of politics. Nations rise when institutions are stronger than individuals. The Federal High Court judgment ordering the deregistration of the ADC and other political parties is just one of those activities that further reduces the common man’s trust in our legal systems. It should be reversed.
“I pledge that we will restore the dignity, independence, and integrity of the judiciary. The common man must have a voice. The business community must be protected from legal uncertainty and intimidation. Justice must be impartial, accessible, and respected by all. To our judges, legal luminaries, senior advocates, and lawyers: this is your moment. Rise, defend the rule of law, take back your country! A new Nigeria is POssible.”
Not even Lamine Yamal’s second half introduction could help Spain break through the defence of debutants, Cape Verde, in their first ever meeting, as the ongoing World Cup event produced another one of the stunning results on Monday.
Yamal, the Barcelona superstar just recovering from a near two-month hamstring injury, was brought into the game in the second half to zest up the one-time world champion, but failed to break down the Cape Verde’s dogged defence.
Spain’s in the game played in Atlanta, one of the cities hosting the three-nation Mundial, displayed the same dismal outing, which saw them offering far less than the quality, which saw them lifting the trophy for the first time in 2010.
The European champions, which have not won a knockout game ever since, failed to dominate the African side, replicating their less than impressing outings and their eventual exit in 2018 and 2022 editions, even with the claims of coach Luis de la Fuente that the squad was the best in the competition, Spain were considered among the pre-tournament.
Neither Yamal nor Nico Williams, who also was hit by an injury-disrupted season at Athletic Bilbao and was not introduced until the 87th minute, were able to rise to the occasion against the 500,000 people African side, ranked 67 in the world, which is making their debut on the global stage.
In stark contrast to the searing temperatures faced by some other sides, Atlanta’s state-of-the-art air conditioned stadium meant there was no excuses for the slow tempo of Spain’s build-up.
Indeed the mid-half hydration break was met by boos with fans frustrated at the break in play despite the cool conditions.
The only serious move from the European champions only came at the sixth minute to half-time, when Marc Cucurella, fresh for sealing his move from Chelsea to Real Madrid, sent over a teasing cross that Ferran Torres turned onto the crossbar and Cabo Verde goalkeeper Vozinha got back on his feet to turn Mikel Oyarzabal’s looping header over the bar.
Even after the break, the Blue Sharks, were also able to hold back from the onslaught as they did in the first half, where Vozinho, managed to make another superlative save against Aymeric Laporte’s header just before half-time.
Despite the excitement from the crowd after he was introduced, Yamal, billed as one of the stars of the tournament, failed to create any magic with his first touch being the set-up of a decent opening for fellow substitute Mikel Merino which was too close to Vozinha.
In fact, Cabo Verde billed to take on Uruguay in Miami, nearly snatched a famous victory in the final minute of the 90 when Dani Borges planted a header too close to Unai Simon, who saved the occasion, to prevent the former world champions, billed to face Saudi Arabia in Atlanta on Sunday from humiliation.
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