NEWS
How $3.4bn IMF COVID-19 Loan Was Allegedly Diverted — Falana
Senior Advocate of Nigeria and renowned human rights lawyer, Femi Falana, has called for an immediate investigation into the alleged diversion of a $3.4 billion loan Nigeria received from the International Monetary Fund (IMF) in 2020 to combat the effects of the COVID-19 pandemic.
In a statement released on Sunday, Falana expressed concern over the apparent mismanagement of the emergency funds, which were intended to support Nigeria’s healthcare system, protect jobs, and stabilise the economy during one of the most disruptive global crises in modern history.
“It is pertinent to recall that in the wake of the COVID-19 in 2020, Nigeria requested emergency assistance of about US$3.4 billion — equivalent to 100 percent of its quota from the International Monetary Fund to shore up the country’s economy and help businesses weather the storm of a deadly pandemic that disrupted global markets and plunged the world into a recession,” he said.
READ ALSO: SERAP Sues Tinubu Over Missing $3.4bn IMF Loan
The IMF Executive Board had approved the disbursement on April 28, 2020, under its Rapid Financing Instrument.
The Deputy Managing Director and Acting Chair at the time, Mr. Mitsuhiro Furusawa, emphasized that, “The emergency financing under the RFI will provide much-needed liquidity support to respond to the urgent BOP needs. Additional assistance from development partners will be required to support the government’s efforts and close the large financing gap.
“The implementation of proper governance arrangements—including through the publication and independent audit of crisis-mitigating spending and procurement processes—is crucial to ensure emergency funds are used for their intended purposes.”
Falana, however, said the IMF failed to uphold that commitment. “Characteristically, the IMF Management, which jointly manages the neocolonial economy of Nigeria with the Federal Government, failed to ensure emergency funds were used ‘for their intended purposes.’”
He based his claim on the findings of the 2020 audit report by the Office of the Auditor-General of the Federation, made public in January 2024.
According to the report, $2.4 billion from the loan was initially transferred to the Central Bank of Nigeria (CBN)’s account at the Federal Reserve Bank of New York, with the remaining balance deposited at the Bank of China in Shanghai.
Within weeks, both amounts were reportedly moved again—this time to the Bank for International Settlements (BIS) and the Industrial and Commercial Bank of China—for short-term investments.
“These transactions, according to the audit, were not supported by documentation or approvals from the Federal Government or the CBN’s Investment Committee, and the funds were subsequently reclassified as part of the CBN’s external reserves rather than the Federal Government’s holdings.
“This reclassification, the report noted, allowed interest to be earned on the funds, contrary to the emergency spending purpose for which they were approved,” Falana explained.
Further irregularities were recorded in August 2020 when the Federal Ministry of Finance requested the monetisation of $700 million to support the national budget.
“The Central Bank, according to the report, approved a debit of ₦265.65 billion, applying a higher-than-official exchange rate of ₦379.5/$ as against the prevailing ₦360.5/$.
The funds were credited to three accounts: ₦252 billion went into the COVID-19 Public Sector Account, ₦13.3 billion to the Forex Equalisation Account, and ₦350 million to the Exchange Commission Account.
Falana pointed to additional concerns from the Auditor-General’s findings: “The audit noted that a 2% commission was deducted from the monetised amount, even though the funds were categorised as Federal Government property.
At the end of 2020, an unmonetised balance of $2.7 billion — equivalent to approximately ₦1.02 trillion — remained unaccounted for, according to the Auditor-General’s report.”
The audit urged the CBN Governor to provide an explanation for the movement and reclassification of the funds without due approval.
It further demanded access to bank statements confirming the unmonetised balance, recovery of the ₦13.3 billion and ₦350 million, and full remittance of interest earned on the investments. It warned that failure to do so would attract penalties under financial regulations.
According to Falana, “The Auditor-General wants the money recovered and remitted to the public treasury, and for the evidence of remittance to be forwarded to the Public Accounts Committee of the National Assembly.
“He also said the Auditor-General also recommended that anyone suspected to be involved should be ‘sanctioned and handed over to the EFCC and ICPC for investigation and prosecution, as provided for in paragraph 3112 of the Financial Regulations.’”
However, the lawyer expressed disappointment that both chambers of the National Assembly have not acted on the report.
“Even though the Auditor-General of the Federation submitted the 2020 Annual Report to each House of the National Assembly, both Houses have failed to cause the report to be considered by the committees responsible for public accounts, to cover up the criminal diversion of the $3.4 IMF and several trillions of Naira set out in the Auditor-General’s report, in utter contravention of section 85(5) of the Constitution of the Federal Republic of Nigeria as amended.”
On behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana issued a two-pronged demand—urging Nigeria’s anti-corruption agencies, the EFCC and ICPC, to probe the matter, and calling on the IMF Board to conduct its own investigation.
“We also call on the IMF Board to probe the deliberate refusal of its management to ensure that the emergency funds were used for their intended purposes,” he said.
Falana also asked the IMF to halt collection of any remaining charges on the loan—estimated at SDR 125.99 million (₦275.28 billion)—pending the outcome of a thorough investigation.
Hundreds of pensioners in Benue State on Wednesday took to the streets of Makurdi to protest the non-payment of gratuities, pension arrears and the failure of the government to harmonise pension payments, lamenting that many retirees are dying due to hardship and lack of access to healthcare.
The protesters, under the umbrella of the Concerned Pensioners Association of Benue State, staged a peaceful demonstration and threatened to occupy the Benue State Government House if their demands continue to be ignored.
Carrying placards with inscriptions such as “Pay Us Our Pension, Our Members Are Dying” and other messages demanding justice, the retirees expressed frustration over what they described as years of neglect and broken promises.
ALSO READ: Benue APC Primary Turns Messy as Onoja’s Son Battles David Mark’s Daughter Over Victory
Speaking during the protest, the association’s chairman, Akosu Orban, said pensioners had exhausted all avenues of dialogue with the state government without achieving any meaningful result.
“We have exhausted all avenues for dialogue and resolution with the Benue State Government over our demands without success. That is why we have decided to embark on this peaceful protest,” he said.
According to Orban, gratuities dating back to the year 2000 remain unpaid, while pension arrears owed to state retirees stand at 38 months and those owed to local government retirees have accumulated to 62 months.
He also raised concerns over the non-harmonisation of pensions, claiming that some retirees still receive as little as N2,000 monthly despite existing provisions for improved pension payments.
“It may interest you to know that some pensioners who retired many years ago are still being paid N2,000 monthly pension. If pensions were properly harmonised, they should be receiving up to N40,000 per month,” he stated.
The pensioners lamented that the prolonged delay in settling their entitlements has pushed many retirees into extreme poverty.
“Pensioners are dying on a daily basis because they cannot afford drugs and special diets required for age-related ailments. We have become scavengers, beggars and destitute in the land we served diligently,” Orban added.
The association accused the administration of Governor Hyacinth Alia of failing to fulfil promises allegedly made during the 2023 election campaign to clear pension arrears and gratuities within 100 days of assuming office.
The retirees further alleged that they withdrew several court cases against the government after receiving assurances that outstanding payments would be settled on a first-retired, first-paid basis, only for those promises to remain unfulfilled.
Warning that their patience was running out, the protesters vowed to escalate their action if their demands were not addressed.
“We are hungry and angry. If our concerns are not addressed, we will have no option than to occupy the Benue State Government House until justice is done to pensioners,” Orban declared.
Responding to the protest, Benue State Commissioner for Finance, Michael Oglegba, said the current administration inherited pension and gratuity liabilities estimated at N300 billion.
He noted that the government was making efforts to settle the obligations despite limited resources.
“That is what we inherited, but we are doing our very best to pay what we can. They have the right to demonstrate, but government, in its wisdom, is doing its best,” Oglegba said.
The commissioner added that the administration had fully paid gratuities of workers who retired since it assumed office in 2023, while also working to reduce the backlog inherited from previous administrations.
The protest highlights the growing frustration among pensioners in Benue State, many of whom say years of unpaid entitlements have left them struggling to survive.
A total of 268 Nigerians evacuated from South Africa following recent xenophobic attacks are expected to arrive in Lagos today as the Federal Government intensifies efforts to protect its citizens abroad.
The returnees, who form the first batch of those seeking voluntary repatriation, are being transported aboard an Air Peace evacuation flight scheduled to land at the Murtala Muhammed International Airport, Lagos, at about 5:00 a.m.
The Minister of State for Foreign Affairs, Ambassador Sola Enikanolaiye, is expected to receive the evacuees on behalf of the Federal Government upon their arrival.
This was disclosed in a statement issued by the spokesperson of the Ministry of Foreign Affairs, Kimiebi Imomotimi Ebienfa, who said the Acting High Commissioner of Nigeria in Pretoria, Ambassador Alexander Ajayi, would accompany the returnees and formally hand them over to Nigerian authorities.
The evacuation follows renewed xenophobic attacks in South Africa, which have left many foreign nationals, including Nigerians, fearful for their safety and seeking a return to their home countries.
According to the ministry, the ongoing screening exercise for Nigerians willing to return home voluntarily has been extended until Sunday, June 14, 2026, to enable more affected citizens to participate in the evacuation programme.
The ministry said the extension underscores the Federal Government’s commitment to the welfare, safety and protection of Nigerians living overseas.
It also assured that relevant Ministries, Departments and Agencies (MDAs) have made adequate arrangements for the reception, documentation and support of the returnees upon arrival.
The latest evacuation marks another chapter in the long-standing concerns over xenophobic violence in South Africa, where Nigerians and other African migrants have periodically faced hostility, attacks and displacement.
Federal authorities have reiterated their commitment to safeguarding the interests of Nigerians abroad while continuing diplomatic engagements aimed at addressing the situation and ensuring the safety of affected citizens.
A coalition of civil society organisations, activists, labour groups and youth movements has declared June 12, 2026, a day of nationwide protest against worsening insecurity, economic hardship and deteriorating living conditions across Nigeria.
The protest, scheduled to coincide with the country’s Democracy Day celebration, is being championed by prominent human rights lawyer Femi Falana and popular musician-turned-activist Falz, alongside several civil society leaders and advocacy groups.
In a joint statement released ahead of the demonstration, the coalition expressed concern over what it described as the growing suffering of Nigerians amid rising insecurity, inflation and poverty.
SEE ALSO: How $3.4bn IMF COVID-19 Loan Was Allegedly Diverted — Falana
According to the group, millions of citizens have little reason to celebrate Democracy Day as many communities continue to battle terrorism, banditry, kidnapping and other violent crimes.
The statement was jointly endorsed by Falana, National Chairman of the Alliance on Surviving COVID-19 and Beyond (ASCAB); Hassan Taiwo Soweto of the #EndBadGovernance Movement; Yinka Folarin of the Committee for the Defence of Human Rights (CDHR); Falz and several other civil society advocates.
The coalition lamented that innocent Nigerians are being killed, abducted and displaced while many families continue to live in fear due to the worsening security situation across the country.
“The Nigerian people deserve a government that places the protection of lives and property at the centre of governance,” the coalition stated.
The group further demanded the immediate release of citizens currently being held captive by kidnappers and criminal groups in various parts of the country.
It also criticised what it described as inadequate responses to insecurity despite repeated assurances by authorities that the situation was improving.
According to the coalition, schools remain vulnerable to attacks, farmers face challenges accessing their farmlands and many major highways are still considered unsafe for travellers.
Beyond security concerns, the coalition highlighted the growing economic hardship facing Nigerians, citing rising fuel prices, currency devaluation, increased electricity tariffs and the soaring cost of essential goods and services.
The statement noted that food prices have continued to rise sharply, making it increasingly difficult for families to meet their basic needs.
It added that transportation costs have become unbearable for many citizens, while small and medium-sized businesses are struggling to survive due to high operating costs, unstable electricity supply and declining consumer purchasing power.
The coalition also expressed concern over stagnant wages and persistent inflation, arguing that workers’ incomes can no longer adequately support their households.
Explaining the purpose of the June 12 protest, the organisers said the nationwide action is intended to compel the government to take urgent and practical steps to tackle insecurity and implement policies that will ease the economic burden on citizens.
The coalition called on workers, students, traders, artisans, market women, professionals, unemployed youths, religious organisations and labour unions to mobilise and participate peacefully in the demonstration.
“The time has come for Nigerians to speak with one voice and demand security, dignity and a decent standard of living. Enough of the killings. Enough of the kidnappings. Enough of the hunger. Enough of the suffering,” the statement added.
The organisers described the planned protest as a democratic expression of citizens’ frustrations and a collective demand for a safer and more prosperous Nigeria.
OPEC Oil Output Lowest Since at Least 2000 as US Blockade Squeezes Iran: Report
Dangote Foundation Distributes Rice to Cement Host Communities in Ogun
US Threatens to Deport Influencers Covering the World Cup for Profit
‘Our Members Are Dying’ — Benue Retirees Protest Unpaid Pensions, Gratuities
Xenophobia Horror: 268 Nigerians Flee South Africa, Arrive Lagos Today
June 12 Showdown: Falana, Falz Lead Nationwide Protest Against Hardship, Insecurity
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
