The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over its alleged failure to account for $6.23 million in election funds and ₦1.63 trillion in other public funds. The lawsuit followed grim allegations documented in Volume II of the Auditor-General of the Federation’s 2023 Annual Report, published on 7 August 2026.
The report covers various periods between January and December 2023 and includes funds linked to an allegedly fraudulent election-funding request made by former President Muhammadu Buhari. It also highlights ₦1.25 trillion in unrecovered CBN 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.
SERAP Seeks Court Order for Accountability
In the lawsuit filed at the Federal High Court in Abuja, SERAP seeks a court order to compel the CBN to account for the missing funds. They also demand that the bank disclose the purposes, beneficiaries, repayment status, recovery measures and findings of its internal investigation into the alleged fraud.
SERAP argues that accountability of public institutions, including the CBN, is a key part of Nigeria’s constitutional democracy. They emphasize that the allegations suggest serious violations of public trust and Nigeria’s constitutional and legal obligations.
The lawsuit, filed by SERAP’s lawyers Kolawole Oluwadare, Kehinde Oyewumi, Andrew Nwankwo, and Kelechi Anwu, stresses the need for a credible investigation to establish the facts, identify those responsible, and recover any unlawfully lost public funds.
Alleged Mismanagement of Public Funds
According to the Auditor-General’s report, the CBN failed to investigate an alleged fraud at its Abuja Branch Office, amounting to $6.23 million. The report states that the money was spent based on a request for election funding purportedly made by former President Buhari. However, the bank did not provide the investigation report to the audit team, raising fears that the money may have been lost.
The CBN also failed to recover ₦1.25 trillion in intervention loans granted to state governments in 2023. The Auditor-General fears these funds may have been diverted to private purposes and recommends their recovery.
Additionally, the bank reportedly failed to recover ₦116.18 billion in loans granted to distressed and liquidated banks. It also did not present its 2023 audited financial statements to the audit team, raising concerns about fund diversion.
The Auditor-General notes that the funds remain in the hands of some anchors, potentially hampering the program’s food-security objectives. The CBN failed to provide a list of beneficiaries or the program’s impact for audit assessment.
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SERAP’s lawsuit highlights the public’s right to know the whereabouts and status of public funds. They cite Section 15(5) of the Nigerian Constitution, which requires the state to abolish all corrupt practices and abuse of power. The CBN Act 2007 establishes specific statutory responsibilities concerning the Bank’s accounts, assets, financial reporting and management.
No date has been set for the hearing of the suit.
Additionally, SERAP wants the bank to identify officers responsible for approving and disbursing the funds and disclose any disciplinary or administrative action taken. They further request records concerning seven boxes of currency notes awaiting examination, as well as abandoned and unserviced vehicles at its Lagos branch and bullion vans at its Abeokuta branch.
The CBN Act 2007 imposes specific responsibilities on the bank’s leadership, including ensuring true accounts of transactions, assets, liabilities, and entrusted valuables. Sections 27 to 32 of the Act outline the bank’s principal powers and functions, while Section 49 mandates the audit of its accounts.
The CBN’s financial affairs are subject to a statutory framework of accounting, audit, and public accountability, as reinforced by Sections 49 and 50 of the CBN Act.
Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the Convention obligate states to develop effective anti-corruption policies and manage public funds properly.
No date has been fixed for the hearing of the suit.
Auditor-General’s Concerns Over Vehicle Management
The Auditor-General expresses concern that the Central Bank of Nigeria’s (CBN) handling of vehicles may cause inefficiency in branch operations and delays in critical currency tasks. This includes the abandonment of an unserviceable bullion van at the Abeokuta Branch Office, which remains on the branch’s records.
The Auditor-General requests the CBN to provide evidence of disposal and replacement of these vehicles to address these issues.
