SERAP drags FG to ECOWAS Court over N78.8bn cash transfer

SERAP, an organization focused on socio-economic rights and accountability, has taken the Federal Government to the Economic Community of West African States (ECOWAS) Court over its alleged mishandling of over N78.8bn allocated for cash-transfer and social protection programs for vulnerable Nigerians. The group is demanding that the court compel the government to account for the questioned expenditure, investigate financial irregularities, recover any public funds misused, and enhance accountability mechanisms governing these programs.

In the suit, ECW/CCJ/APP/42/26, SERAP is also asking the court to verify whether the money reached its intended beneficiaries and take necessary measures to prevent eligible households from losing assistance due to financial mismanagement or inadequate controls. This legal action is based on findings from the Auditor-General of the Federation’s 2024 Annual Report, published on August 7, 2026, which highlighted financial management deficiencies in the National Cash Transfer Office and the National Social Safety Nets Coordinating Office.

These deficiencies took place between January 2023 and December 2024 and involved several federal institutions responsible for administering social protection programs. SERAP contends that these irregularities go beyond mere administrative or accounting errors, questioning whether they raise fundamental concerns about the government's duty to protect public resources allocated to economically vulnerable citizens.

The organization emphasizes that while the audit queries do not prove that all N78.8bn was stolen or that beneficiaries were denied assistance, it's not asking the court to decide on criminal guilt but to examine if the government adequately safeguarded the funds, investigated identified deficiencies, and implemented effective corrective measures.

One significant concern raised by SERAP pertains to roughly N33.751bn reportedly transferred in 2023 to 3,295,207 households across 35 states. The Auditor-General's findings indicate that adequate records were not produced to authenticate these payments and reconcile them with beneficiary records. SERAP questions whether authorities can provide verifiable evidence of the disbursed amounts, beneficiary identities, authorizations for payments, and reconciliation records.

The absence of such records makes it challenging for auditors and oversight bodies to determine if discrepancies occurred during implementation or if funds were used correctly. SERAP is also demanding the production of relevant beneficiary information, payment records, verification documents, authorizations, and reconciliation records linked to the N33.751bn transfers.

Another major issue in the audit report is about N36.744bn in payments reportedly made without prepayment audits. Prepayment audits are designed to verify if proposed payments comply with financial regulations before public funds are released. SERAP argues that the lack of these checks raises doubts about the observed safeguards and the ability to independently verify the transactions.

The organization acknowledges that not conducting prepayment audits doesn't automatically mean every payment was improper. Additionally, the audit raises questions about N4.616bn in expenditure without supporting documentation. Other highlighted items include approximately N350.182m in enrolment payments, N89.511m for store purchases, and N17.422m in diesel advances.

Together, these figures form the basis of SERAP’s allegation that more than N78.8bn in expenditure from federal cash-transfer and social protection programs needs proper explanation and investigation. The organization seeks to uncover the circumstances surrounding these transactions, the explanations offered by relevant institutions, and whether any subsequent investigations or corrective actions have been taken.