SERAP Sues CBN Over AGF-Flagged N1.63trn, $6.23m

By Adedapo Adesanya

The Socio-Economic Rights and Accountability Project (SERAP) has sued the Central Bank of Nigeria (CBN) over its alleged failure to account for $6.23 million in election-related funds and more than N1.63 trillion in other public funds flagged in the Auditor-General of the Federation’s 2023 annual report.

In a suit filed at the Federal High Court in Abuja last Friday, SERAP is seeking an order of mandamus compelling the CBN to account for the funds and disclose details of their disbursement, beneficiaries, repayment status and recovery efforts.

The suit, numbered FHC/ABJ/CS/2450/2026, also seeks an order directing the bank to disclose the findings of its internal investigation into an alleged election-funding fraud, identify the officers and other individuals responsible for approving and disbursing the funds, and state any disciplinary or administrative actions taken.

The Auditor-General’s report, published on August 7, 2026, flagged several financial transactions and unrecovered loans relating to different periods between January and December 2023.

The funds include $6.23 million allegedly linked to a fraudulent election-funding request purportedly made by former President Muhammadu Buhari, N1.252 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.

According to the report, the CBN failed to investigate an alleged fraud involving $6.23 million at its Abuja branch. The bank’s internal audit reportedly disclosed that the money was spent following a request for election funding purportedly made by Buhari.

However, the CBN allegedly failed to provide the audit team with its investigation report for scrutiny and confirmation.

The Auditor-General expressed concern that the funds might have been lost through fraudulent payments and recommended their recovery and remittance to the treasury.

SERAP argued that the findings warranted a credible investigation to establish the facts, identify those responsible and recover any public funds found to have been unlawfully lost.

“The CBN has legal obligations to account for each amount identified by the Auditor-General, explain the basis for each transaction, identify the persons or entities that received or benefited from the funds, and disclose measures taken to investigate, reconcile and recover any amount found to have been improperly paid or lost,” the organisation said.

The report also identified N1.252 trillion in intervention loans granted to various state governments that remained unrecovered, raising concerns that the funds might have been diverted to private purposes.

The Auditor-General recommended that the loans be recovered and remitted to the treasury.

Another N116.18 billion in loans granted to distressed and liquidated banks was reportedly unrecovered. The CBN also allegedly failed to provide its 2023 audited or draft financial statements, alongside a schedule of recoveries and outstanding loan balances, for the audit team’s examination.

Under the Anchor Borrowers’ Programme, which was designed to support farmers and boost food production, the report flagged N262.86 billion in disbursements, raising concerns that some programme anchors had retained the funds instead of ensuring they achieved their intended objectives.

The Auditor-General said the CBN failed to provide a list and number of beneficiaries or evidence of the programme’s impact for audit assessment. The report recommended the recovery of the funds over concerns that they might have been diverted to private purposes.

SERAP is also asking the court to compel the CBN to account for seven boxes of currency notes awaiting examination, abandoned and unserviceable vehicles at its Lagos branch, and an unserviceable bullion van at its Abeokuta branch.

The Auditor-General warned that the failure to account for the seven boxes of currency notes could increase the outstanding volume of notes awaiting examination and create risks of financial mismanagement. The report recommended sanctions for gross misconduct.

At the CBN’s Lagos branch, the report flagged abandoned, unserviceable vehicles, warning that their condition could affect operations and delay critical currency-related activities. It called on the bank to provide evidence of their disposal or replacement.

The report also raised concerns over an unserviceable bullion van abandoned at the bank’s Abeokuta branch, noting that the vehicle remained on the branch’s records. The Auditor-General requested evidence of its disposal or replacement.