Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to launch an investigation into the whereabouts of the $3.4 billion loan acquired in 2020 by the administration of former President Muhammadu Buhari from the International Monetary Fund (IMF).

SERAP is urging President Tinubu to instruct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, and relevant anti-corruption agencies to promptly probe allegations surrounding the missing, diverted, or unaccounted-for IMF loan.

According to SERAP, the annual audited report for 2020, released last week by the Auditor-General of the Federation, contains damning revelations, including the absence of documents to substantiate the movement and expenditure of the IMF loan.

In a letter dated February 3, 2024, and signed by its Deputy Director, Kolawole Oluwadare, SERAP highlighted that the Auditor-General had reportedly stated that “no information or document was provided to justify the movement and spending of the fund.”

Additionally, SERAP implored President Tinubu to ensure that anyone suspected of involvement faces appropriate prosecution, provided there is sufficient admissible evidence, and that any missing IMF loan is fully recovered and returned to the public treasury. The organization quoted the Auditor-General’s recommendation that the funds be completely retrieved and remitted to the public treasury, with those suspected of involvement sanctioned and handed over to anti-corruption agencies.

SERAP emphasized that there is a legitimate public interest in ensuring justice and accountability for these serious allegations and that implementing these essential measures would put an end to the impunity of wrongdoers. Failure to investigate these grave allegations, bring the suspected culprits to justice, and recover any missing IMF loan, according to SERAP, would have dire consequences for resource allocation and exacerbate the nation’s debt burden.

SERAP requested that these recommended actions be taken within seven days of receiving or publishing the letter. If there is no response within that period, SERAP intends to consider appropriate legal action to compel the government to comply with the request in the public interest.

The organization pointed out that allegations of corruption in the expenditure of the IMF loan, as documented by the Auditor-General, undermine the country’s economic development, trap the majority of Nigerians in poverty, and deprive them of opportunities. These allegations suggest a serious breach of public trust, violations of the Nigerian Constitution 1999 (as amended), the country’s anti-corruption laws, and international anti-corruption obligations, including the UN Convention against Corruption.

SERAP referred to the 2020 annual audited report by the Auditor-General of the Federation, which stated that the $3.4 billion emergency financial assistance obtained from the IMF to address the budget and health crisis resulting from the COVID-19 pandemic may have gone missing, been diverted, or remained unaccounted for. The Auditor-General recommended the recovery and remittance of the funds to the public treasury, with evidence of remittance forwarded to the Public Accounts Committee of the National Assembly.

The organization noted that Nigeria was supposed to spread the repayment of the IMF loan from 2023 to 2027, with the first installment due in 2023, worth $497.17 million, the second installment due in 2024, worth $1.76 billion, and the third installment due in 2025, worth $865.27 million. The final two installments, due in 2026 and 2027, will each amount to $33.99 billion as interest payments.

Investigating these allegations, identifying and prosecuting those suspected of involvement in the missing IMF loan, and holding them accountable would serve the public interest and deter wrongdoing. SERAP emphasized that the consequences of corruption impact citizens daily, as it results in additional costs for essential services such as healthcare, education, and administrative services. The organization also underscored the government’s duty to ensure that the country’s loans, including those from the IMF, are transparently and responsibly used solely for their intended purposes, the development of public goods and services, and the general public interest.

In April 2020, the Federal Government promised to make “judicious use” of the $3.4 billion loan, with then-Minister of Finance, Budget, and National Planning, Zainab Ahmed, expressing gratitude to the IMF for its timely response to assist in mitigating the impact of the COVID-19 pandemic.

Zainab Ahmed stated, “Nigeria will certainly make judicious use of and prudent management of the facility.”