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How $3.4bn IMF COVID-19 Loan Was Allegedly Diverted — Falana

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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.

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13,000 Terrorists Neutralised in 12 Months — Tinubu Highlights Major Security Gains

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President Bola Tinubu has announced that Nigerian security forces have neutralised more than 13,000 terrorists within the past 12 months, describing it as a major breakthrough in the country’s ongoing fight against insecurity.

The President made the disclosure on Friday during his Democracy Day address to the nation, where he outlined progress made by his administration in tackling terrorism, banditry, and other violent crimes across the country.

Tinubu said Nigeria has moved beyond routine military training exercises with international allies and is now focused on more precise and effective operations against terrorist groups.

He cited a recent successful military operation in Arege, Borno State, where troops reportedly degraded a command centre belonging to the Islamic State West Africa Province (ISWAP).

SEE MORE: ‘Support Tinubu, Reject Fear’ — Sanwo-Olu Tells Nigerians

“We have moved from training with our allies, the United States, France and other European countries, to precision targetting. In Arege, Borno State, we degraded ISWAP’s command centre. Terror-related deaths are down by 81 per cent since 2015. Over 13,000 terrorists have been neutralised in the past year,” he said.

The President also emphasized that the Federal Government remains committed to non-kinetic approaches in addressing insecurity, including encouraging repentant insurgents to surrender and reintegrate into society.

He revealed that more than 124,000 insurgents and their dependants have surrendered since 2023 through the government’s Operation Safe Corridor programme.

“But we also keep the door of surrender open. Over 124,000 fighters and dependants have laid down their arms since 2023 through Operation Safe Corridor,” Tinubu stated.

Warning criminals, the President said bandits, kidnappers, and sponsors of terrorism must embrace peace or face the full force of the law.

“To bandits, kidnappers and sponsors of terror: surrender or face the full force of the Nigerian state. These windows of surrender will not remain open forever. No mercy will be shown to those who trade in the blood of Nigerians,” he warned.

Tinubu further urged Nigerians to remain united in the face of security challenges, stressing that criminal activities should not be viewed through ethnic or regional lines.

“At a time like this, let us not assign blame or point fingers. Crime has no ethnicity. We must stand united and be assured that the enemies of our nation shall soon be history. We will triumph over terror and continue to build a more prosperous nation,” he added.

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June 12: Tinubu Reveals How Nigerians Will Benefit from Democracy

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President Bola Tinubu has said that democratic governance must translate into tangible economic benefits for citizens, stressing that “democracy must be felt in the pocket” as his administration continues to implement reforms aimed at improving the lives of Nigerians.

Speaking in his Democracy Day address on Friday, the President said ongoing infrastructure projects across the country are helping to connect producers to markets while creating opportunities for enterprise and employment.

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Tinubu also disclosed that the National Agricultural Development Fund is set to deploy 10,000 tractors over the next five years to boost agricultural productivity and strengthen food production nationwide.

Highlighting some of the gains recorded by his administration, the President revealed that more than 1,000 small and medium-sized enterprises (SMEs) have been certified for export.

He added that non-oil exports grew by 21 per cent in the past year, reflecting efforts to diversify Nigeria’s economy beyond crude oil.

Despite these achievements, Tinubu acknowledged that many Nigerians are still grappling with economic hardship.

He said his administration remains focused on reducing inflation, expanding food production, creating jobs, improving living standards and rebuilding confidence in the economy.

According to him, the government is working to move the country “from uncertainty to stability,” with the next phase of reforms aimed at accelerating economic growth and ensuring that progress is felt at household and community levels across all regions.

The President further stated that his administration is pursuing financial autonomy for Nigeria’s 774 local government councils, arguing that weak grassroots governance has contributed to development challenges and insecurity in parts of the country.

Tinubu maintained that strengthening local government administration is crucial to addressing insecurity and improving service delivery, adding that the Renewed Hope Agenda is designed to ensure that the dividends of governance reach every Nigerian.

He reiterated his commitment to building a more stable and prosperous nation where the benefits of democracy are visible in the everyday lives of citizens.

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‘Our Members Are Dying’ — Benue Retirees Protest Unpaid Pensions, Gratuities

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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.

 

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