SERAP gives CBN 7 days to explain alleged diversion of election funds amounting to $6.23 million, and other public funds amounting to ₦1.63 trillion

The Socio-Economic Rights and Accountability Project (SERAP) has given the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the CBN seven days “to account for US$6.23 million in alleged diverted or unaccounted for election funds and over ₦1.63 trillion in other public funds, or face appropriate legal action.”

The serious allegations were documented in the Federation Auditor General’s Annual Report Volume II 2023, published on 7 August 2026. The Auditor General stated that the findings covered the period January to December 2023.

The funds consist of more than ₦1.25 trillion of unrecovered CBN intervention loans to state governments; ₦116.18 billion in unrecovered loans to banks in distress and liquidation; ₦262.86 billion distributed through the Anchor Borrower Program; and a US$6.23 million payment related to alleged fraudulent election funding requests purportedly made by former President Muhammadu Buhari.

SERAP urged Cardoso and the CBN “to account for more than ₦1.25 trillion in intervention loans to the state, and ₦116.18 billion in loans to distressed and liquidated banks, and disclose details of beneficiaries, amounts disbursed, and any recovery measures.”

SERAP also urged it and the CBN “to account for the ₦262.86 billion disbursed under the Anchor Borrower Program, including the names and number of beneficiaries as well as participating ‘Anchors’, the amount disbursed, utilization, monitoring arrangements and any recovery measures.”

SERAP urged him and the CBN “to account for the US$6.23 million reportedly ‘spent following the request for election funds by former President Muhammadu Buhari’, and publish the findings of an internal investigation into the alleged fraud, including steps taken to recover the funds and establish responsibility.”

In a letter dated September 26, 2026 and signed by SERAP deputy director Kolawole Oluwadare, the organization said: “Accountability of public institutions, including the CBN, is an important pillar of Nigeria’s constitutional democracy.”

SERAP said: “The magnitude and nature of these findings require immediate, independent and transparent action, as they raise fundamental questions regarding the retention, expenditure, accounting, safeguarding and recovery of public resources.”

According to SERAP, “The Auditor General’s findings raise serious concerns regarding the management and accountability of public resources and potential violations of the Nigerian Constitution of 1999 (as amended), national anti-corruption laws, and Nigeria’s obligations under the UN Convention against Corruption.”

The letter, in part, reads: “Findings involving public resources on the scale identified by the Auditor General require a credible investigation capable of establishing the facts, identifying responsibility and ensuring recovery if public funds have been unlawfully lost.”

“SERAP urges him and the CBN to identify those responsible for the affected public funds, take appropriate disciplinary action, refer alleged criminal offenses to the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offenses Commission (ICPC) and other competent authorities, and ensure full recovery and remittance to the treasury of diverted, lost or unaccounted funds.”

“SERAP also urges him and the CBN to conduct or support an independent forensic reconciliation of the amounts identified by the Auditor General, involve relevant oversight and law enforcement agencies where necessary, and retain all records relevant to the transactions and investigations.”

“The institutional independence of the CBN cannot be understood as immunity from constitutional audit, statutory accounting requirements, public financial oversight, access to information or investigation of credible allegations of financial misconduct.”

“The CBN has a clear legal obligation to account for any amounts identified by the Auditor General, explain the basis of each transaction, identify the person or entity that received or benefited from such funds, and disclose the actions taken to investigate, reconcile and recover any amounts found to have been improperly paid or lost.”

“The expenditure of public funds, including by the CBN, must remain subject to effective constitutional oversight, transparency, and accountability. Large amounts of public funds identified by the Auditor General as unrecovered, unaccounted for, or requiring explanation cannot be separated from constitutional protections.”

“The public interest requires meaningful oversight of withdrawal, expenditure, investment and accountability mechanisms. The management of public funds by the CBN must remain transparent and subject to appropriate safeguards.”

“According to the Auditor General, the findings in the report cover the period between January and December 2023.”

“The Auditor General’s audited 2023 report reportedly found that the Central Bank of Nigeria (CBN) failed to recover over ₦1.2 trillion [₦1,252,095,444,724.82] in ‘CBN intervention loans provided to various states in 2023.’”

“The Auditor General was concerned that the money may have been ‘misappropriated for personal use’ and recommended that the money be returned and remitted to the treasury.”

“CBN reportedly failed to ‘recover over ₦116 billion [₦116,179,000,000.00] loans made to distressed and liquidated banks.’”

“The CBN also failed to ‘present the audited or draft 2023 Financial Statements as well as the recovery schedule and outstanding balances on loans made to banks in distress and liquidation to the audit team for examination.’ The Auditor General is concerned that the money may have been ‘misappropriated’.”

“CBN reportedly ‘spent over ₦262 billion [₦262,859,473,249.81] on the Anchor Borrower Program which is intended to support farmers to ensure food production in the country.’ However, ‘the money remains in the hands of a few ‘Anchors,’ which ‘could hinder the program’s intended food security goals.’”

“The CBN also ‘failed to provide the list and number of program beneficiaries as well as the impact of the program for audit assessment.’ CBN ‘failed to recover the money, which was quite significant.’ The Auditor General is concerned that the money may be ‘misappropriated for personal use.’”

“CBN reportedly failed to ‘investigate alleged fraud at the Abuja Branch Office, which amounted to over $6.2 million [$6,230,000.00].’ An internal CBN audit revealed that the money was spent based on an election funding request purportedly made by Nigeria’s former President. [Muhammadu Buhari].’”

“However, ‘CBN failed to provide the audit team with an investigation report on the alleged fraud for review and confirmation.’ The Auditor General is concerned that the money may be ‘lost’ and the payments may be ‘fraudulent’. He wants the money returned and deposited into the treasury.”

“The CBN also reportedly failed to ‘account for seven (7) boxes of Currency Notes Awaiting Examination (A/E) that were long past due.’ The Auditor General was concerned that this ‘could lead to increased waiting times for checking banknotes’ and ‘mismanagement of funds’ and recommended that ‘sanctions [be] imposed for a serious offense.’”

“CBN reportedly ‘left several vehicles unserviceable at the Lagos Branch.’ The Auditor General noted that the condition of the vehicles had a negative impact on the smooth operations of the branch, considering their strategic role for the Bank.”

“The Auditor General is concerned that this ‘could lead to inefficiencies in Branch Operations and Delays in fulfilling critical currency operations’ and wants the CBN to ‘provide evidence of disposal [and] vehicle replacement.’”

“CBN also reportedly ‘abandoned an unserviceable gold bullion van at the Abeokuta Branch Office.’ Unserviceable gold bullion vans remain on branch records. The Auditor General is also concerned that this ‘could lead to inefficiencies in Branch Operations and Delays in fulfilling essential currency operations’ and wants the CBN to ‘provide evidence of disposal [and] vehicle replacement.’”

“Identifying those responsible, ensuring that any perpetrators are brought to justice, and ensuring full recovery of lost or unaccounted for public funds will serve the public interest and help overcome impunity for mismanagement of public resources.”

“These findings also raise broader concerns regarding the CBN’s compliance with the principles of transparency, accountability and responsible management of public resources. Nigerians have a right to know the whereabouts and status of public funds. Taking the requested steps will advance the public interest in accountability, restitution, recovery and ensuring non-recurrence of funds.”