By Peter Omopo
Renowned human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has demanded an official investigation into the alleged diversion of the $3.4 billion loan Nigeria received from the International Monetary Fund (IMF) during the COVID-19 pandemic.
Falana made the call in a statement released on Sunday, following confirmation by the IMF last week that Nigeria had fully repaid the emergency loan obtained under the Rapid Financing Instrument. Although the loan’s principal has been cleared, outstanding charges amounting to SDR 125.99 million—approximately N275.28 billion—remain.
He noted that the emergency funding, secured in April 2020, was intended to support Nigeria’s health sector, safeguard jobs, and stabilize the economy during the global health crisis and plummeting oil prices. However, he expressed concern that the funds may not have been used for their intended purposes.
Citing a 2020 audit report by the Office of the Auditor-General, released in January 2024, Falana said the report revealed significant irregularities. According to the audit, $2.4 billion of the loan was transferred to the Central Bank of Nigeria’s (CBN) account at the Federal Reserve Bank of New York, and later moved to the Bank for International Settlements (BIS) for short-term investments. The remaining funds, initially sent to the Bank of China, Shanghai, were similarly redirected to the Industrial and Commercial Bank of China.
Falana accused both the IMF and the Federal Government of failing to ensure transparency and accountability, despite assurances by the IMF that governance measures—including audits and published spending reports—would be enforced.
“The implementation of proper governance arrangements was deemed crucial by the IMF to ensure emergency funds were used for their intended purposes, but that never happened,” Falana stated, demanding a full-scale investigation to uncover the whereabouts and usage of the funds.
He called on the relevant anti-graft and oversight institutions to act swiftly to hold those responsible accountable and recover any misappropriated funds.
