Prominent human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has demanded a thorough investigation into the alleged diversion of Nigeria’s $3.4 billion loan from the International Monetary Fund (IMF), acquired during the COVID-19 pandemic.
In a statement to The PUNCH, Falana criticized the management of the IMF Rapid Financing Instrument loan, approved in April 2020 to bolster Nigeria’s healthcare system and economic stability.
Although the principal of the loan has been repaid, the IMF recently revealed that Nigeria still owes special drawing rights (SDR) worth 125.99 million about N275.28 billion in charges and fees.
Falana cited findings from a 2020 audit by the Office of the Auditor-General of the Federation, made public in January 2024, which exposed questionable fund transfers and reclassifications.
According to the report, $2.4 billion was moved from Central Bank of Nigeria (CBN) accounts in the U.S. and China to other institutions for short-term investments without appropriate authorization, and was later classified as part of the country’s external reserves.
The audit further noted that $700 million was monetized to support the 2020 federal budget at an unfavorable exchange rate, with a 2% commission deducted despite the funds being public assets. An additional $2.7 billion approximately N1.02 trillion remained unmonetized and unaccounted for.
Falana called on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to probe the matter.
He also condemned the National Assembly’s inaction, accusing it of complicity and constitutional dereliction.
He added that the IMF must clarify why it failed to enforce its own oversight mechanisms, and he urged the suspension of any further repayments pending a full investigation.
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