SERAP sues CBN over $6.23m election funds, N1.63tn audit queries

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over allegations of mismanagement and lack of accountability regarding $6.23 million in election funds and over N1.63 trillion in other public funds, as reported by the Auditor-General of the Federation in their 2023 Annual Report.

The lawsuit, filed in the Federal High Court in Abuja, seeks to compel the CBN to account for the funds, disclose the beneficiaries of transactions, and reveal measures taken to investigate the alleged irregularities and recover outstanding amounts.

In their suit, SERAP, represented by lawyers Kolawole Oluwadare, Kehinde Oyewumi, Andrew Nwankwo and Kelechi Anwu, is demanding a mandamus order to compel the CBN to account for the funds and disclose their purposes, beneficiaries, repayment status, and recovery measures. Additionally, they are asking for an order directing the bank to disclose findings of their internal investigation into the alleged election-funding fraud and identify officials involved in approving and disbursing the funds, along with any disciplinary or administrative action taken against them.

SERAP highlighted the importance of transparency and accountability in the management of public resources, stating that the allegations raise serious concerns about the CBN's compliance with constitutional and statutory requirements. They emphasized that the CBN, despite its institutional independence, is still subject to financial audits, statutory accounting requirements, public oversight, and investigations into credible allegations of fraud.

The lawsuit specifically addresses the $6.23 million spent allegedly through a fraudulent election funding request made by former President Muhammadu Buhari, N1.25 trillion in unrecovered intervention loans to state governments, N116.18 billion in loans to distressed and liquidated banks, and N262.86 billion disbursed under the Anchor Borrowers' Programme.

SERAP claims that the CBN failed to investigate the alleged election-funding fraud and did not provide its investigation report for scrutiny, suggesting potential losses through fraudulent payments.

The report further criticized the CBN's handling of N1.25 trillion in intervention loans to state governments, N116.18 billion in loans to distressed banks, and N262.86 billion spent under the Anchor Borrowers' Programme, indicating possible diversion of funds to private purposes. SERAP urged the court to compel the CBN to provide records related to currency notes, abandoned vehicles, and a bullion van, aiming to identify those responsible, ensure accountability, and recover improperly disbursed funds to protect the public interest.