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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.”
Hours after Mohammed Hayatu-Deen did, Chibuike Rotimi Amaechi, on Tuesday, also flatly rejected the outcome of the presidential primaries, of the African Democratic Congress, alleging widespread voter disenfranchisement and electoral malpractice.
Amaechi former Minister of Transportation and former Governor of Rivers State, described the announced results as “concocted,” insisting that the process failed to meet the standards of transparency and fairness earlier promised by the party.
He said in a statement: “I unequivocally reject the concocted results being announced,” Amaechi stated.
He said he had previously maintained that he would only accept the outcome of the primaries if the process was free, fair and transparent, stressing that the exercise did not reflect the democratic values the ADC claimed to represent.
“I will not accept results from a process that does not reflect the values that the ADC had pledged to uphold, to rescue Nigerians from the impunity and gross mismanagement that our country is currently facing in the hands of the ruling party,” he said.
Amaechi alleged that a significant number of party members were denied the opportunity to vote during the exercise.
“There’s no way that about eighty percent of members of the party were not allowed to vote, and you expect me to accept such results,” he stated.
The former Rivers State governor questioned the moral basis of the ADC criticising the ruling All Progressives Congress (APC) and the Independent National Electoral Commission (INEC) over alleged electoral malpractice while allegedly engaging in similar conduct internally.
“A party that criticizes the ruling APC and INEC for vote buying, rigging and writing of results, cannot be engaged in vote buying, writing of results, and other electoral malpractices that leads to the disenfranchisement of voters who are party members. This is not acceptable!” he declared.
Amaechi said the ADC was envisioned as a platform to amplify the voices of ordinary Nigerians and provide credible political alternatives irrespective of ethnicity, religion or social background.
His rejection of the outcome is expected to deepen tensions within the opposition party following the conclusion of its presidential primary election.
“These timeless virtues of devotion, selflessness, and submission to divine will are values our nation desperately needs today,” were the exact words with which Godswill Akpabio, attempted to rouse Nigerians to the ethos of unquestionable faith and service to the country.
Akpabio, Chairman of the National Assembly, who drew example from Prophet Ibrahim, admonished Nigerians to emulate his unwavering faith, obedience, and willingness to sacrifice for the sake of Almighty Allah.
The Senate President, who conveyed his sentiments via a statement by Eseme Eyiboh, also used the specifically hail President Bola Ahmed Tinubu, his vice, Kashim Shettima and Muslim faithful in Nigeria and around the world as they celebrate Eid El Kabir.
Stressing that the occasion called for prayer and sober reflection on the theme of sacrifice, he added: “This sacred occasion reminds us of Prophet Ibrahim’s unwavering faith, obedience, and willingness to sacrifice for the sake of Almighty Allah.
“To our dear President, Commander-in-Chief of the Armed Forces of Nigeria, Asiwaju Bola Ahmed Tinubu, his vice, Senator Kashim Shettima and Muslim brothers and sisters, I felicitate with them on behalf of my family, constituents and the Senate on this blessed Eid. May the lessons of sacrifice, compassion, and generosity that define this season strengthen your faith and bring peace to your homes.
“As you share with the less privileged and extend love to neighbours of all faiths, you embody the true spirit of Nigeria. To all Nigerians, I urge us to use this solemn period to pray fervently for peace, security, and prosperity in our land. Let us pray for our troops in the frontlines, for farmers to return safely to their fields, and for unity to prevail over division in our Nation.
“Eid El Kabir also calls us to deep reflection on the future of our country. Just as Prophet Ibrahim was tested, Nigeria is in a season of testing. The sacrifices we make today in patience, in tolerance and in choosing hope over despair will determine the Nigeria our children inherit.
“The Renewed Hope Agenda of this administration, supported by the National Assembly, is anchored on that same principle: that meaningful progress often requires collective sacrifice.
“May Almighty Allah accept your prayers and sacrifices. May He heal our land, guide our leaders, and bless the Federal Republic of Nigeria. Barka da Sallah. Eid Mubarak.”
“I will not be attending the announcement of the ADC Presidential Election Results today. I am concerned by reports from across the country of widespread vote rigging, some of which I myself observed, and will therefore be taking advice on my next steps.”
These were the exact words of Mohammed Hayatu-Deen, one of the presidential aspirants of the African Democratic Congress (ADC), with which he cast a slur on the ongoing presidential primaries of the party, hinging his position on reports of fraud trailing the exercise.
Hayatu-Deen, a second timer in the search for the nation’s number one job, ran against Atiku Abubakar, Nigeria’s former Vice President and Rotimi Chibuike Amaechi, former Minister of Transportation.
In a statement on his assessment of the exercise which began on Monday, the renowned economist Chairman of the Nigerian Economic Summit Group (NESG), used his X platform to convey his dissatisfaction with the process.
The ADC which said the collation for the exercise would take place in Abuja had urged aspirants, party leaders, delegates, and members to conduct themselves peacefully and uphold party unity.
Bolaji Abdullahi, its spokesman, who described the exercise as a defining moment for both the ADC and Nigerians seeking a credible political alternative, maintained that it remained committed to internal democracy and a transparent leadership selection process.
“The ADC remains proud to stand today as the only truly democratic party in Nigeria because it is the only political party whose choice of presidential candidate is determined through open primaries,” he said adding that the conduct of aspirants and party members during the exercise would reflect the leadership culture the ADC seeks to promote.
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