- Flay N’Assembly Over Silence…
By Abiola Olawale
Renowned human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, and members of a coalition of civil society, have called for a thorough probe into an alleged diversion of the staggering sum of $3.4 billion International Monetary Fund (IMF) loan obtained by Nigeria in 2020 to combat the COVID-19 pandemic.
Leading the group which calls itself-Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the alleged mismanagement of the funds, which he said were intended to bolster Nigeria’s healthcare sector and support businesses during the global crisis.
In a statement signed on behalf of ASCAB, a coalition of over 70 labour and civil society organizations, Falana condemned the alleged diversion and called for accountability.
He also criticized the National Assembly for failing to act on the audit report, accusing it of concealing the misuse of public funds in violation of Section 85(5) of the 1999 Constitution.
Falana also appealed to the IMF to halt the collection of charges, including net charges, basic interest, and administrative fees amounting to SDR 125.99 million (approximately N275.28 billion), until a full probe is concluded.
The statement reads in part: “It is pertinent to recall that in the wake of COVID-19 in 2020, Nigeria requested emergency assistance of about US$3.4 billion—equivalent to 100 per cent 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.
“At the meeting of the IMF Executive Board held on April 28, 2020, the financial support of $3.4 billion was approved to provide critical support to shore up Nigeria’s health care sector and shield jobs and businesses from the shock of the COVID-19 crisis. In particular, the loan was designed to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices, and also help limit the decline in international reserves.
“Following the executive board’s discussion of Nigeria, Mr Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, stated, “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 (emphasis ours).
“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.”
This revelation is coming after a 2020 audit report by the Office of the Auditor-General of the Federation, which was released in 2024. The report allegedly underlined several irregularities in the handling of the Saud Covid-19 funds.
The report stated that on April 30, 2020, $2.4 billion of the loan was transferred to the CBN’s account at the Federal Reserve Bank of New York, while the remaining balance went to the CBN’s account at the Bank of China, Shanghai.
The report further stated that by June 1, the $2.4 billion had been moved to the Bank for International Settlements (BIS) for short-term investments. The funds in China were similarly transferred to the Industrial and Commercial Bank of China (ICBC).
The allegations also come after the IMF, last week, confirmed that Nigeria had fully repaid the $3.4 billion COVID-19 financial support it got under the Rapid Financing Instrument (RFI).
Although Nigeria’s principal balance stands at zero, scheduled charges, including net charges, basic interest and administrative fees, amount to SDR 125.99 million. At the current exchange rate, this translates to approximately N275.28 billion.
