Human Rights lawyer, Femi Falana, SAN, has urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the suspected criminal diversion of the $3.4 billion loan Nigeria secured from the International Monetary Fund (IMF) to combat the COVID-19 pandemic.
In a statement released on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana expressed concern over the management of these emergency funds.
He also called on the IMF board to examine the alleged failure of its management to ensure that the funds were utilized as intended, and requested the IMF to halt the collection of scheduled charges, including net charges, basic interest, and administrative fees, pending the outcome of the investigation.
Last week, the IMF confirmed that Nigeria had fully paid back the $3.4 billion COVID-19 financial support received under the Rapid Financing Instrument (RFI). While the principal balance is now zero, scheduled charges amount to approximately N275.28 billion.
Falana recounted that, in response to the COVID-19 crisis in 2020, Nigeria had sought emergency assistance of around $3.4 billion from the IMF to stabilize the economy and support struggling businesses.
The IMF Executive Board approved this financial support on April 28, 2020, confirming it was meant to bolster Nigeria’s healthcare system and mitigate the economic impact of the pandemic. The implementation of effective governance measures was highlighted as essential to ensure the intended use of these funds.
However, Falana criticized IMF management for not ensuring that the funds served their designated purposes. A recent audit by the Office of the Auditor-General of the Federation, released in January 2024, revealed several irregularities in the handling of the funds. Notably, it stated that a substantial amount was transferred to international accounts without adequate documentation or authorization.
The audit called for explanations from the Central Bank of Nigeria (CBN) regarding these transactions and recommended the recovery of funds that had not been transparently accounted for, as well as potential sanctions against individuals implicated in the discrepancies.
Femi Falana emphasized that despite the Auditor-General submitting the report to the National Assembly, there has been a lack of action from both Houses to investigate further, which raises concerns over accountability.
He reiterated the demand for thorough investigations by the EFCC and ICPC regarding the misallocation of the loan and urged the IMF to stop their scheduled charges until a comprehensive review is undertaken.
