. Seeks Court Order to Compel Central Bank to Disclose Beneficiaries, Recoveries and Investigation Findings
By| Goodluck E. Adubazi, Abuja
The Socio-Economic Rights and Accountability Project (SERAP) has sued the Central Bank of Nigeria (CBN) over its alleged failure to account for $6.23 million in election-related funds and more than ₦1.63 trillion in other public funds flagged in the Auditor-General of the Federation’s 2023 annual report.
The lawsuit seeks to compel the apex bank to explain the whereabouts and status of the funds, disclose the beneficiaries of the affected transactions, identify officials responsible for approving and disbursing the money, and provide details of investigations and recovery efforts.
The allegations are contained in Volume II of the Auditor-General’s 2023 Annual Report, published on August 7, 2026, covering various activities between January and December 2023.
The funds in question include $6.23 million allegedly spent following an election-funding request purportedly made by former President Muhammadu Buhari; ₦1.252 trillion in unrecovered intervention loans to state governments; ₦116.179 billion in loans granted to distressed and liquidated banks; and ₦262.859 billion disbursed under the Anchor Borrowers’ Programme.
In suit number FHC/ABJ/CS/2450/2026, filed last Friday at the Federal High Court in Abuja, SERAP is seeking an order of mandamus compelling the CBN to account for the funds and disclose the purposes for which they were released.
The organisation is also asking the court to direct the bank to disclose 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 officials and other individuals responsible for approving and disbursing the affected funds and disclose any disciplinary or administrative actions taken against those found responsible.
The organisation is equally seeking disclosure of records relating to seven boxes of currency notes awaiting examination, abandoned and unserviceable vehicles at the CBN’s Lagos branch, and an unserviceable bullion van at its Abeokuta branch.
According to SERAP, the allegations documented by the Auditor-General raise serious questions about the management, safeguarding, expenditure, accounting and recovery of public resources.
It argued that accountability by public institutions, including the CBN, is fundamental to Nigeria’s constitutional democracy and that the bank’s institutional independence should not shield it from financial scrutiny, statutory accounting requirements or investigations into credible allegations of financial misconduct.
“The CBN has legal obligations to account for each amount identified by the Auditor-General, explain the basis for each transaction, identify the persons or entities that received or benefited from the funds, and disclose measures taken to investigate, reconcile and recover any amount found to have been improperly paid or lost,” the organisation stated in the suit.
On the alleged $6.23 million election-related expenditure, SERAP cited the Auditor-General’s report, which reportedly found that the CBN failed to investigate an alleged fraud at its Abuja branch involving $6,230,000.
According to the report, the bank’s internal audit disclosed that the money was spent following a request for election funding purportedly made by former President Muhammadu Buhari.
However, the Auditor-General reportedly said the CBN failed to provide the investigation report on the alleged fraud to the audit team for scrutiny and confirmation.
The Auditor-General expressed concern that the money might have been lost through potentially fraudulent payments and recommended its recovery and remittance to the treasury.
The allegations have not, in the information provided by SERAP, established that the funds were stolen or that any named individual committed fraud.
The lawsuit also concerns ₦1,252,095,444,724.82 in CBN intervention loans reportedly granted to various state governments in 2023 but not recovered.
SERAP said the Auditor-General raised concerns that the funds might have been diverted to private purposes and recommended that the outstanding amount be recovered and remitted to the treasury.
The report also reportedly identified ₦116,179,000,000 in loans granted to distressed and liquidated banks that the CBN had failed to recover.
According to the findings cited in the suit, the bank also failed to present its 2023 audited or draft financial statements and a schedule showing recoveries and outstanding balances on the loans for the audit team’s examination.
The Auditor-General reportedly expressed concern over the possibility of diversion and called for appropriate action to establish the status of the outstanding funds.
Another major issue raised in the suit is the ₦262,859,473,249.81 reportedly spent under the Anchor Borrowers’ Programme, established to support farmers and boost food production.
SERAP said the Auditor-General found that the funds remained in the hands of some programme anchors, raising concerns about whether the initiative’s intended food-security objectives were being achieved.
The report also reportedly stated that the CBN failed to provide the list and number of beneficiaries or information on the programme’s impact for audit assessment.
The Auditor-General expressed concern that the outstanding funds might have been diverted to private purposes and recommended their recovery.
SERAP argued that the scale of the expenditure and the questions surrounding its beneficiaries and outcomes make transparent accounting and effective recovery measures necessary in the public interest.
Beyond the major financial transactions, the suit draws attention to operational and asset-management concerns identified in the Auditor-General’s report.
These include seven overdue boxes of currency notes awaiting examination, which the CBN reportedly failed to account for.
The Auditor-General reportedly warned that the situation could lead to an increase in unexamined currency notes and possible mismanagement of funds, recommending sanctions for gross misconduct where established.
The report also identified unserviceable vehicles abandoned at the CBN’s Lagos branch, noting that their condition could undermine operational efficiency and delay critical currency operations.
Similarly, an unserviceable bullion van at the bank’s Abeokuta branch reportedly remained on the branch’s records.
The Auditor-General called for evidence of the disposal or replacement of the affected vehicles.
In advancing its legal arguments, SERAP cited Sections 13 and 15(5) of the 1999 Constitution, as amended, which address compliance with the Constitution’s directive principles and the responsibility of the state to abolish corrupt practices and abuse of power.
The organisation also relied on provisions of the CBN Act 2007 concerning the bank’s financial records, assets, liabilities, audit and annual reporting obligations.
It specifically referenced Section 7(2), which places responsibilities on the CBN Governor and Deputy Governors regarding the keeping of true accounts of the bank’s transactions, assets, liabilities and valuables entrusted to it.
SERAP further cited Sections 49 and 50 of the Act on the audit of the bank’s accounts and its annual accounts and reporting requirements.
The organisation also invoked Nigeria’s obligations under the United Nations Convention against Corruption, particularly Articles 5 and 9, which address anti-corruption policies and the proper management of public affairs and public funds.
According to SERAP, the allegations documented by the Auditor-General require credible investigations to establish the facts, identify those responsible and secure the recovery of public funds found to have been improperly paid or lost.
“The spending of public funds, including by the CBN, must remain subject to effective constitutional oversight, transparency and accountability,” the organisation argued.
The suit was filed on SERAP’s behalf by its lawyers, Kolawole Oluwadare, Kehinde Oyewumi, Andrew Nwankwo and Kelechi Anwu.
No date has been fixed for the hearing of the suit.
