General
SERAP Sues FG Over $25bn Overdraft From CBN
By Adedapo Adesanya
The federal government has been sued by the Socio-Economic Rights and Accountability Project (SERAP) over the $25 billion overdraft it took from the Central Bank of Nigeria (CBN).
The organisation, in its suit filed last week at the Federal High Court, Abuja, was the FG to disclose spending details of the overdraft and loans obtained from the CBN since the inauguration of President Muhammadu Buhari on May 29, 2015.
In the suit number, FHC/ABJ/CS/559/2021 filed on behalf of SERAP by its lawyers, Mr Kolawole Oluwadare and Ms Adelanke Aremo, they added that the information must include the projects on which the overdraft has been spent and repayments of all overdrafts to date.
SERAP is also seeking an order to compel the president to “explain and clarify whether the $25 billion (N9.7 trillion) overdraft reportedly obtained from the CBN is within the five-per cent limit of the actual revenue of the government for 2020.”
The suit followed SERAP’s Freedom of Information (FoI) request to President Buhari, stating that: “Disclosing details of overdrafts and repayments would enable Nigerians to hold the government to account for its fiscal management and ensure that public funds are not mismanaged or diverted.”
SERAP is also seeking: “an order directing and compelling President Buhari to disclose details of overdrafts taken from the CBN by successive governments between 1999 and 2015.”
In the suit, SERAP is arguing that: “Secrecy and the lack of public scrutiny of the details of CBN overdrafts and repayments are antithetical to the public interest, the common good, the country’s international legal obligations, and a fundamental breach of constitutional oath of office.”
Joined in the suit as respondents are the Attorney General of the Federation and Minister of Justice, Abubakar Malami, SAN; the Minister of Finance, Budget and National Planning, Zainab Ahmed; and the Governor of CBN, Godwin Emefiele.
SERAP is also arguing that: “Ensuring transparency and accountability in the spending of CBN overdrafts and loans would promote prudence in debt management, reduce any risks of corruption and mismanagement, and help the government to avoid the pitfalls of excessive debt.”
According to SERAP: “By the combined reading of the Constitution of Nigeria 1999 (as amended), the Freedom of Information Act, the UN Convention against Corruption, and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on the government to disclose information to the public concerning details of CBN overdrafts, loans and repayments to date.”
SERAP is also arguing that: “The Nigerian Constitution, Freedom of Information Act, and these treaties rest on the basic principle that citizens should have access to information regarding their government’s activities.
“Transparency and accountability in the spending of CBN overdrafts would also ensure that public funds are properly spent, reduce the level of public debt, and improve the ability of the government to invest in essential public goods and services, such as quality education, healthcare, and clean water.”
“It is the primary responsibility of the government to ensure public access to these services in order to lift millions of Nigerians out of poverty and to achieve the Sustainable Development Goals by 2030.
“Transparency and accountability in the spending of CBN overdrafts and loans would also improve the ability of the government to effectively respond to the COVID-19 crisis. This means that the government would not have to choose between saving lives or making debt payments.
“The recent overdraft of $25.6 billion (about N9.7 trillion) reportedly obtained from the CBN would appear to be above the five-per cent limit of the actual revenue of the federal government for 2020, that is, N3.9 trillion, prescribed by Section 38(2) of the CBN Act 2007. SERAP notes that five per cent of N3.9 trillion is N197 billion.
“While Section 38(1) of the CBN Act allows the Bank to grant overdrafts to the Federal Government to address any temporary deficiency of budget revenue, sub-section 2 provides that any outstanding overdraft ‘shall not exceed five per cent of the previous year’s actual revenue of the Federal Government.’
“Similarly, Section 38(3) requires all overdrafts to ‘be repaid as soon as possible and by the end of the financial year in which the overdrafts are granted.’
“The CBN is prohibited from granting any further overdrafts until all outstanding overdrafts have been fully repaid. Under the CBN Act, ‘no repayment shall take the form of a promising note or such other promise to pay at a future date, treasury bills, bonds or other forms of security which is required to be underwritten by the bank.’
“Similarly, the Fiscal Responsibility Act provides in section 41 that the government ‘shall only borrow for capital expenditure and human development.’ Under the Act, the government ‘shall ensure that the level of public debt as a proportion of national income is held at a sustainable level.’
“Section 44 of the Fiscal Responsibility Act requires the government to specify the purpose of any borrowing, which must be applied towards capital expenditures, and to carry out a cost-benefit analysis, including the economic and social benefits of any borrowing. Any borrowing should serve the public good, and be guided by human rights principles.
“SERAP has consistently recommended to the Federal Government to reduce its level of borrowing and to look at other options of how to finance its budget, such as reducing the costs of governance and addressing systemic and widespread corruption in ministries, departments and agencies (MDAs) that have been documented by the Office of the Auditor-General of the Federation.
“Our requests are brought in the public interest, and in keeping with the requirements of the Nigerian Constitution; the Freedom of Information Act; the Fiscal Responsibility Act; the Central Bank Act; the Debt Management Office Act; and the country’s international legal obligations.
“There is a statutory obligation on the respondents, being public officers in their respective public offices, to proactively keep, organize and maintain all information or records about CBN overdrafts, loans, and repayments in a manner that facilitates public access to such information or records.
“Mandamus lies to secure the performance of a public duty in the performance in which the applicant has a sufficient legal interest.
“Unless the reliefs sought by SERAP are granted, the respondents will not provide SERAP with the information requested and will continue to be in breach of their constitutional responsibilities and the country’s international legal obligations and commitments.”
By Adedapo Adesanya
The Africa Finance Corporation (AFC) has raised $2 billion via a syndicated loan, with considerable participation from Asian and European banks seeking to capitalise on growing demand for infrastructure projects across the continent.
Barclays Bank, Commerzbank, First Abu Dhabi Bank PJSC, and FirstRand Bank led the debt facility. Other participating lenders include Export-Import Bank of India, Bank of Communications, Industrial and Commercial Bank of China, and Industrial Bank of Korea, among others.
Each region accounted for about 35 per cent of the creditors, according to a statement by AFC.
AFC chief executive, Mr Samaila Zubairu, said the money would enable more master planning around infrastructure and industrial planning for economies, regions and economic corridors across the continent.
According to Mr Zubairu, the lender is also in discussions to invest in a proposed oil refinery to be built by billionaire Aliko Dangote in East Africa.
The financer initially sought $1.6 billion via the facility but scaled it up to $2 billion amid strong demand from Asian financial institutions.
“In this round, we saw a lot more of Asian banks. We have banks from China, Hong Kong, and Korea. They are a lot more engaged,” he said.
Mr Zubairu said the loan underscored AFC’s strong track record, pointing to its financing for projects including Nigeria’s 650,000 barrels per day Dangote oil refinery and Africa’s largest copper smelter in the Democratic Republic of Congo.
“There’s a lot more confidence, a lot more partners,” Mr Zubairu said of those participating in the loan. “We are constantly demonstrating that Africa is executing. Africa is building.”
“The capital that we raise goes into African infrastructure build out, African industrialisation build up – essentially creating jobs for Africans,” Mr Zubairu said.
The AFC chief said the lender is also working to reform capital rules and create structures that will allow more African money to stay on the continent and be invested in crucial infrastructure projects.
AFC, founded in 2007, has assets surpassing $19 billion and counts 48 African countries as members.
In January, the infrastructure-focused multilateral lender secured an A rating from S&P. It has an A3 rating from Moody’s, an AAAspc rating from S&P Ratings (China) and an A+ rating from the Japan Credit Rating Agency.
By Adedapo Adesanya
The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity distribution companies (DisCos) to pay 20 per cent compensation to eligible Band A customers who were affected by power shortfalls between February and March 2026.
In Directive No. NERC/2026/002, the commission said, generation constraints, which were largely caused by inadequate gas supply and vandalism of gas and transmission infrastructure, prevented DisCos from meeting committed service levels for some Band A feeders.
NERC Mandated that for feeders that supplied less than 18 hours per day, affected Band A feeders will not be downgraded during the covered period, and eligible customers will receive special compensation equal to 20 per cent of approved energy figures for February 2026.
However, for Band A feeders that recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
MD customers are high-consumption users who typically have their own dedicated transformer and operate with a load of 45 kVA and above; they include large residential estates, banks, hotels, supermarkets, industrial facilities and oil and gas complexes.
Non-MD customers do not have a dedicated transformer and instead share public transformers, and they generally consume less, often below 45–50 kVA.
For Non-MD customers, compensation is set at 20 per cent of the approved February 2026 energy cap applicable to the affected feeder.
For MD customers, compensation is 20 per cent of the average energy billed per MD customer in February 2026.
According to NERC, prepaid customers will receive their compensation as token credits, while postpaid customers will receive bill adjustments.
The commission said that compensation for February must be completed by 31 May 2026, while compensation for March must be completed by 30 June 2026.
The commission prohibited Distribution companies from using compensation credits to offset any existing customer debt, adding that customers must be clearly informed of the value and period of the compensation they receive.
NERC said it will monitor implementation and verify compliance to ensure all eligible customers receive what they are due.
The commission reaffirmed its commitment to protecting electricity consumers while ensuring the stability and sustainability of the electricity market.
By Adedapo Adesanya
The Transmission Company of Nigeria (TCN) has confirmed the destruction of six transmission towers along the Apir–Lafia 330kV line in Nasarawa State, causing significant disruption to electricity supply in parts of the country.
In a statement issued on Wednesday, TCN spokesperson, Mrs Ndidi Mbah, said the incident occurred on May 30 at about 1:15 a.m. during a heavy downpour.
She explained that the transmission line initially tripped, prompting operators to attempt a trial reclosure of Line II at about 2:08 a.m., but the effort failed.
A subsequent inspection of the transmission corridor, however, revealed extensive damage to key components of towers T125 to T130, confirming that the infrastructure had been vandalised.
“The tripping of the lines prompted a physical line trace to determine the fault, which revealed damage to critical components of towers T125 to T130, confirming vandalism on the affected sections of the transmission corridor,” Mbah said.
The incident has forced both Apir–Lafia 330kV Transmission Lines I and II out of service pending the reconstruction of the damaged towers.
TCN said its engineers have been deployed to the site to assess the extent of the damage and determine the materials required to restore normal transmission along the corridor.
As an interim measure, the Lafia 330kV Transmission Station is being supplied through an alternative line to minimise the impact on electricity consumers within the franchise areas of Abuja Electricity Distribution Company (AEDC) and Jos Electricity Distribution Company (JEDC).
The company condemned the persistent vandalism of power infrastructure, warning that such acts undermine investments in the electricity sector and threaten the stability of the national grid.
It also urged residents and host communities to remain vigilant and report suspicious activities around transmission installations to security agencies or the nearest TCN office.
TCN stressed that safeguarding critical national infrastructure requires collective responsibility to ensure a reliable and uninterrupted electricity supply nationwide.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn