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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.
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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.
The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Nigerian National Petroleum Company Limited (NNPC Ltd) to court over the oil major’s failure to account for approximately ₦5.9 billion expended its incorporation, transition and rebranding from the NNPC into NNPC Ltd.
According to the SERAP, the NNPC Ltd paid over ₦2.9 billion for incorporation expenses from petroleum product proceeds, while the National Petroleum Investment Management Services also charged a similar amount against the crude oil revenue for the same purpose, bringing the total to ₦5.9 billion.
Consequently, the organisation is seeking “an order of mandamus to direct and compel the NNPCL to account for about ₦5.9 billion allegedly spent on the rebranding of the NNPC to the NNPCL.”
It is also asking the court to “direct and compel the NNPCL to provide a comprehensive reconciliation statement detailing the specific financial transactions relating to the ₦5.9 billion expenditure, including the identities of the contractors involved, and how the funds were utilised for the rebranding of NNPC to NNPCL.”
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The SERAP further asked the court to “direct and compel the NNPCL to disclose the names and official positions of the government officials who authorized and approved the release and expenditure of the ₦5.9 billion reportedly spent on the rebranding of NNPC to NNPCL, and to clarify whether the expenditure complied with applicable procurement laws and due-process requirements.”
The order of mandamus is contained in suit number FHC/ABJ/CS/1248/2026 filed at the Federal High Court in Abuja, according to a statement issued on Sunday by the NGO’s Deputy Director, Kolawole Oluwadare.
Filed on behalf of the SERAP by its lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi and Andrew Nwankwo, the suit also noted that the Senate Committee on Public Accounts reportedly raised concerns over the expenditure described as incorporation and transition costs during the transformation process.
“The Committee described the spending of the ₦5.9 billion as excessive, unjustifiable, and deserving of further explanation, investigation, and legislative scrutiny in the public interest,” the SERAP noted.
The SERAP argued that there is a legitimate public interest in the disclosure of the details sought.
“The NNPCL has a legal responsibility to explain whether the ₦5.9 billion expenditure represents value for money, constitutes lawful spending of public funds, and complies with applicable due process requirements.
“There ought to be full transparency and accountability regarding the reported ₦5.9 billion spent on rebranding NNPC to NNPCL. Nigerians have the right to know who approved the expenditure, who received the funds, the nature of the services rendered, and whether due process and procurement requirements were strictly followed,
“The disclosure of the identities of the officials involved and the processes followed in approving the expenditure would enable the public to assess whether the expenditure was properly authorized, represented value for money, and was undertaken in accordance with due process and procurement requirements,” it said.
It added that, given the size of the expenditure, there is “an urgent need for a prompt, thorough, and transparent disclosure of the details surrounding the spending of the funds.”
It further stated that “the failure to account for the spending of the ₦5.9 billion on rebranding from NNPC to NNPCL reflects a failure of NNPCL accountability more generally and is directly linked to the institution’s continuing failure to uphold transparency and accountability principles.”
The SERAP added that the transformation of the national oil company from the NNPC to the NNPC Ltd followed the Petroleum Industry Act (PIA) 2021, which required it to become a commercially oriented limited liability company fully owned by the federal government.
It also cited constitutional and international provisions, including Section 13 and Section 15(5) of the Constitution, as well as Articles 5 and 9 of the UN Convention against Corruption and Article 21 of the African Charter on Human and Peoples’ Rights, to support its arguments.
No date has been fixed for the hearing of the suit.
The attention of the Osun State Government has been drawn to a statement by the Executive Director of the Muslim Rights Concern (MURIC), Professor Ishaq Akintola, accusing Governor Ademola Adeleke of marginalising Muslims in his administration.
The State Government in a statement issued by the Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi charged Professor Akintola to be guided by the Quran and Hadith of Prophet Muhammad in his engagement with the Osun State Government.
“We believe Professor Akintola acted on misinformation or he is actively an agent of misinformation. Governor Adeleke is a strong believer who relates well with people of all faiths, in line with the inclusive leadership example of Prophet Muhammad (SAW). His administration has appointed qualified Muslims to key positions.
For the record, Governor Adeleke appointed Alhaji Teslim Igbalaye as Secretary to the State Government and Alhaji Kazeem Akinleye, a student of Sheikh Kamaludeen Al-Adabiyy in Ilorin, as Chief of Staff. His Spokesperson is a known Mallam of Tijaniya extraction. The Commissioner for Information is alone a deep muslim of Al-Adabiyy extraction. Several other Muslims are also serving as commissioners and heads of agencies, alongside qualified appointees of other faiths.
This administration commenced construction of the Osun Hajj Camp, ending Osun’s status as the only Southwest state without one. The governor also approved a mosque in the Government House for Muslim staff.
We urge Professor Akintola to verify facts before going public, as admonished in Qur’an 49:6.
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He should also assess government performance using verifiable data on budget execution, debt management by the DMO, and healthcare, where Osun was rated best in the Southwest for primary healthcare in 2024 and 2025.
Elections should be about jobs, security, infrastructure, healthcare, and education, not identity politics.
“We expect MURIC to judge this administration by its record of service to all citizens, Muslim and non-Muslim alike”.
Rather than feign his political attack with religious coloration, Professor Akintola should be courageous to declare his partisan interest in the opposition APC and stop using religion to do hatchet job politics.
We challenge MURIC to openly condemn the shooting of law-abiding residents (Muslims and non Muslims) of the state by APC thugs in branded APC campaign vehicles in Ile-Ife, Akoda, Owode-Ede and Osogbo, to disprove the allegation that he’s been paid by the opposition to attack Governor Ademola Adeleke.
Rather than spreading baseless misinformation, we are also of the opinion that MURIC should be more interested in cases like the sudden addition of ‘Munirudeen’ to the names of the Osun APC Governorship candidate, a name which was missing from his primary, secondary and university certificates.
The National Youth Service Corps (NYSC) has explained the reason behind the suspension of the 2026 Batch B Stream I Orientation Course for prospective corps members deployed to Niger State.
In a notice shared on its official X account on Sunday, the scheme said the orientation exercise was put on hold due to ongoing renovation work at the state’s orientation camp.
According to the NYSC, the temporary suspension affects all prospective corps members (PCMs) posted to Niger State for the current orientation programme.
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“This is to notify the General Public and Prospective Corps Members (PCMs) deployed to Niger State for the 2026 Batch B Stream I Orientation Course that their Orientation Course Exercise is suspended for now due to ongoing renovation work at the Orientation Camp,” the statement read.
The scheme assured affected corps members that alternative arrangements would be communicated soon, noting that they would be informed of a new reporting date and venue once preparations are completed.
“PCMs affected should note that they will be contacted at a short notice on where and when to report for their Orientation Course,” the NYSC added.
The management also apologised for the inconvenience caused to both the prospective corps members and their parents.
“The Management regrets all inconveniences to the affected PCMs and their parents,” the statement said.
The suspension comes months after a devastating windstorm damaged critical facilities at the NYSC orientation camp in Paiko, located in Paikoro Local Government Area of Niger State.
The storm reportedly affected several structures, including male hostels, the multipurpose hall, kitchen and staff quarters.
Following the incident, the Niger State Government commenced rehabilitation and renovation works aimed at restoring the camp’s infrastructure to a suitable condition for hosting corps members.
While the 2026 Batch B Stream I Orientation Course began nationwide on June 10 and is expected to conclude on June 30, corps members posted to Niger State will now have to await further directives from the NYSC regarding their orientation exercise.
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