Human rights lawyer, Femi Falana (SAN), has urged Nigeria’s anti-graft agencies, the EFCC and ICPC to launch an investigation into the alleged diversion of the $3.4 billion COVID-19 loan Nigeria received from the International Monetary Fund (IMF). He made this known in a statement issued on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB).
According to Falana, the emergency loan was approved by the IMF in April 2020 to strengthen Nigeria’s healthcare system and stabilize the economy during the COVID-19 pandemic. However, he said reports show that the money was not used for the intended purposes.
“The audit noted that a two percent 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 N1.02 trillion remained unaccounted for, according to the Auditor-General’s report,” Falana stated.
IMF Confirmed Loan Repayment but Charges Still Pending
Last week, the IMF confirmed that Nigeria had fully repaid the $3.4 billion obtained through its Rapid Financing Instrument (RFI). However, additional scheduled charges, including basic interest, net charges, and administrative fees, still amount to SDR 125.99 million, translating to N275.28 billion based on the current exchange rate.
Despite this, Falana wants the IMF to suspend the collection of these charges until investigations are concluded. “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.
Auditor-General’s Report Shows Missing Funds, Seeks Accountability
Falana cited the 2020 annual report from the Auditor-General, which uncovered irregularities in how the loan was managed. The report said funds were moved without proper authorization and recommended recovery of N13.3 billion and N350 million into the Federal Government’s account. It also demanded that all interest earned from the investments be remitted.
The Auditor-General further called for those involved in the diversion to be handed over to the EFCC and ICPC. “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,” Falana explained.
However, despite the submission of this report to both chambers of the National Assembly, Falana alleged that the lawmakers have failed to act. “Both Houses have failed to cause the report to be considered by the committees responsible for public accounts, in order to cover up the criminal diversion of the $3.4 billion IMF and several trillions of Naira,” he added.
Call for Urgent Action
In conclusion, Falana and ASCAB are demanding full transparency and accountability for the IMF COVID-19 loan. He insists that the money must be traced, recovered, and those responsible brought to justice. The call also includes a push for the IMF to delay additional charges until the matter is resolved.
