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

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JusticeForSylvester: Oromoni's Family Hires Falana over son's death

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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Adeleke Clarifies Osun Debt Profile

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Osun State Governor, Senator Ademola Adeleke has denied taking foreign loans either secretly or openly since he took over the reign of governance in November 2022, describing any insinuation in that line as mere fake news.

The governor was responding to a recent publication of the state foreign debt stock by the Debt Management Office (DMO) which showed an increase by approximately $26.56 million between December 2024 and June 2026.

The DMO’s external debt stock report as at June 30, 2026, puts Osun State’s total external debt at $101.70 million, compared with $75.14 million recorded as at December 31, 2024. The difference represents an increase of approximately $26.56 million within 18 months.

A breakdown of the DMO figures shows that the state’s multilateral debt increased from approximately $67.60 million in December 2024 to $94.15 million in June 2026. Its bilateral debt also recorded a marginal increase, moving from approximately $7.54 million to $7.55 million within the same period.

Clarifying the details of the debt profile, the governor stated that the DMO had reflected the sum of $25.8 million dollars external loan taken by the previous administration for the Rural Access and Agricultural Marketing Project (RAAMP).

READ ALSO: Tinubu Hails Flamingos After Historic World Cup Final Qualification, Urges Team to Win Trophy

The loan repayment process had matured by December 2025, hence its inclusion by DMO in its report, the state governor explained.

The governor further submitted that there are four similar external loans by the previous administration which have matured for repayment and which may soon be reflected in the state external debt stock.

Gov Adeleke also noted that his administration has not taken any external loan as a strategy for sustainable financial management of the state resources, chiding those accusing the state government of secretly taking foreign loans as ignorant of the statutory procedures for applying for and accessing foreign loan.

“The above clarification is necessary to set the records straight. If at all, our administration is to take loans for any reason, it will be open to the public with utmost transparency and compliance with due process”, the governor was quoted as saying.

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Ogun Police Deny Awujale Palace Siege, Explain Chief Gbenden’s Invitation

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The Ogun State Police Command has dismissed reports alleging that the Awujale Palace in Ijebu-Ode was under siege by thugs and miscreants, describing the presence of security personnel at the palace as a preventive measure to maintain law and order.

The Command also clarified the circumstances surrounding the invitation and subsequent release of Chief Adebisi Adaran, popularly known as Gbenden, amid the ongoing controversy surrounding the vacant Awujale stool.

In a press release issued on Wednesday, November 11, 2026, the Police Public Relations Officer, DSP Oluseyi B. Babas e y i, said the deployment of police personnel to the palace was aimed at safeguarding lives and property and preventing any breakdown of public peace.

SEE ALSO: Ogun Police Win Public Safety Award as Ojajuni Emerges NUJ Golden Jubilee Ambassador

The Command disclosed that an Assistant Commissioner of Police (ACP) was deployed to supervise the security arrangement and ensure effective operational coordination.

Addressing reports surrounding Chief Adaran, the police said he was invited following a written petition containing allegations against him.

According to the statement, the traditional chief honoured the invitation, was questioned in connection with the allegations and subsequently released on self-recognisance.

The police, however, confirmed that investigations into the matter were still ongoing.

The Command stressed that the invitation should not be interpreted as an indication of guilt, describing it as part of a legitimate investigative process.

It stated that the police remained committed to professionalism, impartiality and respect for the rights of individuals in carrying out their statutory responsibilities.

The statement urged members of the public to remain calm, disregard misleading reports and avoid circulating unverified information capable of generating unnecessary tension.

The Command reiterated its commitment to protecting lives and property and maintaining public order across Ogun State.

The latest development comes amid an ongoing disagreement over the traditional administrative structure of Ijebuland following the death of the former Awujale, Oba Sikiru Kayode Adetona, in July 2025, after more than six decades on the throne.

The controversy centres on the administration of Ijebuland during the interregnum and disagreements between the Ogun State Government and sections of the traditional institution over the legitimacy of the interim administrative arrangement.

The state government had established the Awujale Interregnum Administrative Council (AIAC) to oversee the affairs of Ijebuland pending the emergence of a new monarch.

However, some traditional chiefs subsequently announced the formation of the Adele Oba Awujale-in-Council, an alternative arrangement they said was rooted in the customs and traditions of Ijebu-Ode.

Chief Adebisi Adaran, popularly known as Gbenden, was among the traditional chiefs associated with the Adele Oba Awujale-in-Council.

The development triggered a disagreement with the Ogun State Government, which maintained that the AIAC remained the legally recognised administrative body authorised to oversee the affairs of Ijebuland during the interregnum.

The government subsequently reconstituted the AIAC, rejecting the alternative arrangement.

The disagreement has also moved to the courts, with the Adele Oba Awujale-in-Council instituting a suit against the Ogun State Government and members of the reconstituted AIAC, challenging the legality of the interim administrative structure.

Tensions heightened on Tuesday, November 10, when reports emerged that Adaran had been arrested in Ijebu-Ode amid the dispute.

Some reports alleged that his arrest was connected to the ongoing disagreement over the administration of Ijebuland, although the circumstances surrounding the development had initially remained unclear.

 

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2027: Obi Promises to Tackle Insecurity, Revive Plateau Tourism

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Former Anambra State Governor and National Democratic Congress (NDC) presidential candidate, Peter Obi, has promised to tackle insecurity, facilitate the safe return of displaced residents and revive Plateau State’s tourism potential if elected president alongside Senator Rabiu Musa Kwankwaso.

Obi made the promises during a town hall meeting in Jos, the Plateau State capital, on Tuesday, November 10, 2026, as part of his ongoing nationwide engagement with Nigerians.

SEE MORE: JUST IN: Peter Obi, Kwankwaso Arrive in Calabar

In a statement shared on his X account, Obi said the meeting provided an opportunity to engage residents and understand their most pressing concerns, particularly the worsening security situation, youth unemployment, electoral integrity and access to financing for small businesses.

He said securing Nigeria and uniting its people would be the foundation for implementing the development plans he and Kwankwaso had proposed.

“In response, I stressed that fulfilling our plans for Nigeria would first require us to secure the nation and unite our people behind a shared purpose,” he stated.

Addressing the security challenges confronting Plateau State, Obi assured residents that his proposed administration would take decisive action against insecurity and ensure that people displaced by violence could safely return to their ancestral communities.

“In particular, I assured the people of Plateau State that we would confront insecurity decisively and enable citizens displaced by violence who are currently residing in IDP camps to return safely to their communities,” he said.

The former governor also addressed concerns about the welfare of vulnerable groups, particularly persons living with disabilities, following a question raised by a participant at the town hall meeting.

He reaffirmed his commitment to ensuring their inclusion, care and wellbeing, stressing that the treatment of vulnerable citizens reflects a nation’s compassion.

“To our brothers and sisters living with disabilities, I reaffirmed our commitment to their care, inclusion, and wellbeing. A nation’s true measure of compassion is found in the way it treats its most vulnerable citizens,” Obi stated.

He further reiterated his commitment to substantial investments in critical sectors, particularly healthcare and education, as part of efforts to reduce poverty and improve the living conditions of Nigerians.

Obi’s Plateau engagement also included a courtesy visit to the Gbong Gwom Jos, His Royal Majesty, Da (Dr.) Jacob Gyang Buba, CFR.

During the visit, Obi said he briefed the traditional ruler on the town hall meeting and its objective of engaging residents on the challenges affecting their communities.

He said the monarch received the delegation warmly, offered prayers and valuable counsel, and expressed hope for a successful programme.

According to Obi, the traditional ruler reaffirmed that traditional institutions serve as fathers to everyone and called for peace, mutual respect and harmonious coexistence as the next elections approach.

After the palace visit, Obi proceeded to Rhythm 93.7 FM Jos, where he participated in an interview programme.

During the interview, he discussed the challenges confronting Nigeria and the plans he and Kwankwaso had developed to address the country’s problems if elected into office.

The former governor also visited the section of Terminus Market that was destroyed by fire several months ago.

At the market, he interacted with traders, business owners, sellers and buyers to understand how they were coping with the losses and rebuilding their businesses amid prevailing economic challenges.

Obi assured the traders that his proposed administration would work towards easing the economic hardship confronting Nigerians, which he attributed to the policies of the current administration.

The town hall meeting also featured discussions on youth unemployment, access to business financing and the protection of electoral integrity, with participants raising concerns about the issues affecting their livelihoods and the future of the state.

On Plateau State’s tourism potential, Obi recalled a period when Jos and other parts of the state ranked among Nigeria’s leading tourist destinations, attracting visitors from across the country and beyond.

He expressed his determination to restore the state’s tourism appeal and return it to its former prominence.

“In conclusion, I recalled the time when Jos and Plateau State more broadly ranked among the foremost tourism destinations for Nigerians and visitors from around the world. I reaffirmed our determination to revive the state’s tourism potential and restore it to its rightful place of prominence,” he said.

Obi also appreciated the Gbong Gwom Jos for his hospitality, prayers and counsel, while commending party supporters in Plateau State for organising the programme.

He equally thanked residents for their participation, warmth and hospitality throughout the engagement.

Concluding his message, Obi expressed optimism about Nigeria’s future, declaring: “A New Nigeria is POssible, and Nigeria will be OK!”

 

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