Human rights lawyer Femi Falana has urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the alleged diversion of a $3.4 billion loan obtained from the International Monetary Fund (IMF) by Nigeria to combat the COVID-19 pandemic. Falana, representing the Alliance on Surviving COVID-19 and Beyond (ASCAB), also called on the IMF Board to probe its Management's alleged failure to ensure the funds were used as intended.
The IMF confirmed last week that Nigeria fully repaid the $3.4 billion COVID-19 financial support received under the Rapid Financing Instrument (RFI). However, scheduled charges, including net charges, basic interest, and administrative fees, amount to SDR 125.99 million (approximately N275.28 billion). Falana has called for the suspension of these charges pending the conclusion of the investigation.
Details of the Alleged Mismanagement
The $3.4 billion loan, approved on April 28, 2020, was intended to support Nigeria's healthcare sector, protect jobs and businesses, and limit the decline in international reserves. A 2020 audit report by the Office of the Auditor-General of the Federation, released in January 2024, revealed irregularities in the handling of the fund.
The audit report detailed that $2.4 billion was transferred to the CBN's account at the Federal Reserve Bank of New York, with the remainder going to the CBN's account at the Bank of China, Shanghai. These funds were then moved to the Bank for International Settlements (BIS) and the Industrial and Commercial Bank of China (ICBC) for short-term investments. The audit stated these transactions lacked proper documentation or approvals and were reclassified as part of the CBN's external reserves.
The Auditor-General recommends that anyone suspected of involvement should be sanctioned and handed over to the EFCC and ICPC for investigation and prosecution. Falana's call for investigation underscores concerns over transparency and accountability in the management of COVID-19 funds and the need for thorough scrutiny to ensure proper use of public resources.