•Auditor-General flags unrecovered loans, Anchor Borrowers’ funds
NIGERIA: The Socio-Economic Rights and Accountability Project (SERAP) has sued the Central Bank of Nigeria (CBN), seeking an explanation for $6.23 million in allegedly unaccounted-for election funds and more than ₦1.63 trillion in other public funds flagged in the Auditor-General of the Federation’s 2023 annual report.
The organisation is asking the Federal High Court in Abuja to compel the apex bank to account for the funds, disclose the beneficiaries of the transactions, explain its recovery efforts and identify officials responsible for approving and disbursing the money.
The suit followed findings contained in Volume II of the Auditor-General’s 2023 Annual Report, published on August 7, 2026, covering various issues relating to the management of public funds between January and December 2023.
The funds under scrutiny include $6.23 million allegedly spent following an election-funding request purportedly made by former President Muhammadu Buhari, more than ₦1.25 trillion in unrecovered intervention loans to state governments, ₦116.18 billion in loans to distressed and liquidated banks, and ₦262.86 billion disbursed under the Anchor Borrowers’ Programme.
In the suit marked FHC/ABJ/CS/2450/2026, filed last Friday, SERAP is seeking an order of mandamus directing the CBN to account for the funds identified in the audit report.
The organisation is also asking the court to compel the bank to disclose the purposes of the transactions, the identities of the beneficiaries, repayment status, recovery measures and findings of its internal investigation into the alleged election-funding fraud.
SERAP further wants the CBN to identify the officers and other individuals who approved and disbursed the affected funds and disclose any disciplinary or administrative actions taken.
Auditor-General questions $6.23m election expenditure
According to SERAP, the Auditor-General found that the CBN failed to investigate an alleged fraud involving $6.23 million at its Abuja branch.
The report reportedly stated that the bank’s internal audit indicated that the money was spent following a request for election funding purportedly made by Buhari.
However, the CBN allegedly failed to provide its investigation report to the audit team for scrutiny and confirmation.
SERAP said the Auditor-General expressed concern that the funds might have been lost through potentially fraudulent payments and recommended that the money be recovered and remitted to the treasury.
The organisation argued that the allegations required a credible investigation to establish what happened to the funds, determine responsibility and secure recovery if any money was unlawfully lost.
It stressed that the reference to Buhari was based on an allegedly fraudulent request purportedly made in his name and did not, by itself, establish that he made the request or was involved in any wrongdoing.
₦1.25trn state loans remain unrecovered
The lawsuit also challenges the CBN’s reported failure to recover ₦1.25 trillion in intervention loans granted to state governments in 2023.
The Auditor-General reportedly expressed concern that the funds might have been diverted to private purposes and recommended that they be recovered and paid into the treasury.
SERAP is seeking information on the status of the loans, the beneficiaries and the measures taken to recover outstanding amounts.
The organisation also cited ₦116.18 billion in loans granted to distressed and liquidated banks, which the CBN allegedly failed to recover.
According to the audit findings cited in the suit, the bank also failed to present its 2023 audited or draft financial statements and a schedule of recoveries and outstanding balances on the loans for examination by the audit team.
SERAP said the alleged failure to provide the relevant records raised questions about the management and recovery of public funds.
₦262.86bn Anchor Borrowers’ funds under scrutiny
The Anchor Borrowers’ Programme, designed to support farmers and boost domestic food production, is another focus of the lawsuit.
SERAP cited audit findings indicating that ₦262.86 billion spent under the programme remained in the hands of some programme anchors, raising concerns about whether the money had achieved its intended food-security objectives.
The CBN allegedly failed to provide the audit team with a list and number of beneficiaries, an assessment of the programme’s impact and adequate evidence of recovery of the funds.
The Auditor-General reportedly warned that the money might have been diverted to private purposes and recommended its recovery.
SERAP argued that Nigerians were entitled to know how the funds were disbursed, who benefited from them and whether the programme achieved its objectives.
SERAP seeks records on currency, abandoned vehicles
Beyond the major financial transactions, the organisation is asking the court to compel the CBN to disclose records concerning seven boxes of currency notes awaiting examination.
According to the audit findings cited by SERAP, the bank failed to account adequately for the long-overdue currency notes, prompting concerns about possible mismanagement and the need for appropriate sanctions where misconduct is established.
The lawsuit also addresses unserviceable vehicles reportedly abandoned at the CBN’s Lagos branch and an unserviceable bullion van at its Abeokuta branch.
The Auditor-General reportedly warned that the condition of the vehicles could undermine branch operations and delay critical currency-related activities.
SERAP is seeking records showing the disposal or replacement of the vehicles.
‘CBN independence not immunity from accountability’
In its legal arguments, SERAP maintained that the accountability of public institutions, including the CBN, was essential to Nigeria’s constitutional democracy.
It argued that the allegations in the Auditor-General’s report raised serious questions about compliance with the 1999 Constitution, the CBN Act, anti-corruption laws and Nigeria’s obligations under the United Nations Convention against Corruption.
“The CBN’s institutional independence cannot reasonably be understood as immunity from constitutional audit, statutory accounting requirements, public financial oversight, access to information or investigation of credible allegations of fraud and other financial misconduct,” the organisation argued.
SERAP maintained that the bank had a legal obligation to explain the basis for the transactions, identify the individuals and entities that received or benefited from the funds, and disclose the steps taken to investigate, reconcile and recover any money found to have been improperly paid or lost.
It also cited Section 15(5) of the Constitution, which directs the state to abolish corrupt practices and abuse of power, alongside provisions of the CBN Act governing the bank’s accounting, auditing and financial reporting responsibilities.
The organisation further relied on Nigeria’s obligations under the UN Convention against Corruption, particularly provisions concerning anti-corruption policies and the proper management of public affairs and funds.
SERAP said identifying those responsible, bringing perpetrators to justice where wrongdoing is established and recovering any missing public funds would serve the public interest and help tackle impunity in the management of public resources.
The suit was filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Kehinde Oyewumi, Andrew Nwankwo and Kelechi Anwu.
No date has been fixed for the hearing.
