Election Funding: SERAP Gives CBN 7 Days to Account for Alleged $6.23m, N1.63tn

Demands forensic probe, threatens legal action

Wale Igbintade

The Socio-Economic Rights and Accountability Project (SERAP) has given the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, and the apex bank seven days to account for $6.23 million allegedly spent on election funding and more than N1.63 trillion in other public funds identified in the 2023 report of the Auditor-General of the Federation.

SERAP, in a letter dated September 26, 2026, threatened appropriate legal action if Cardoso and the CBN failed to explain the whereabouts, utilisation and recovery of the funds.

The organisation said the allegations were contained in Volume II of the Auditor-General’s 2023 Annual Report, published on August 7, 2026, with the findings variously covering transactions between January and December 2023.

The funds highlighted by SERAP include N1.252 trillion in CBN intervention loans to state governments; N116.18 billion in loans to distressed and liquidated banks; N262.86 billion disbursed under the Anchor Borrowers’ Programme; and $6.23 million reportedly spent following a purported request for election funding attributed to former President Muhammadu Buhari.

The $6.23 million election-funding allegation is one of the most sensitive findings highlighted by SERAP.

According to the Auditor-General’s report as cited by the organisation, the CBN’s internal audit disclosed that the money was spent based on a request for election funding purportedly made by Buhari.

However, the CBN reportedly failed to make the investigation report available to the audit team for scrutiny and confirmation.

The Auditor-General consequently raised concerns that the money might have been lost and that the payments might have been fraudulent, and recommended that the funds be recovered and remitted to the treasury.

SERAP urged Cardoso and the CBN to publish the findings of the internal investigation into the alleged fraud, disclose measures taken to recover the funds and establish responsibility for the transaction.

On the much larger pool of naira funds, SERAP demanded an explanation for N1,252,095,444,724.82 reportedly granted as CBN intervention loans to different states in 2023.

The Auditor-General reportedly expressed concern that the funds could have been diverted to private purposes and recommended their recovery and remittance to the Treasury.

SERAP asked the CBN to disclose the beneficiaries of the state intervention loans, amounts disbursed and recovery measures taken. The audit report also found that the CBN failed to recover N116,179,000,000 in loans granted to distressed and liquidated banks.

The apex bank was further said to have failed to present its 2023 audited or draft financial statements and a schedule showing recoveries and outstanding balances on the loans to the audit team for scrutiny.

The Auditor-General reportedly expressed concern that the money could have been diverted and called for appropriate recovery measures. Another major concern was the Anchor Borrowers’ Programme, under which the CBN reportedly disbursed N262,859,473,249.81 to support farmers and boost food production.

The Auditor-General also found that the funds remained in the hands of some “Anchors”, warning that this could undermine the programme’s intended food-security objectives. The CBN was also said to have failed to provide the list and number of beneficiaries of the programme and information on its impact for audit assessment.

The Auditor-General reportedly recommended recovery of the funds and expressed concern that they might have been diverted to private purposes. Taken together, the three naira categories of funds cited by SERAP amount to about N1.63 trillion, excluding the $6.23 million election-funding allegation.

In its letter, SERAP urged the CBN to identify the persons responsible for the affected public funds, take appropriate disciplinary action and refer suspected criminal conduct to the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC) and other competent authorities.

It also demanded the full recovery and remittance to the Treasury of any funds found to have been diverted, lost or left unaccounted for.

The organisation called for an independent forensic reconciliation of the sums identified by the Auditor-General, involving relevant oversight and law-enforcement agencies where necessary.

SERAP further urged the CBN to preserve all records relevant to the transactions and investigations. “The accountability of public institutions, including the CBN, is a crucial pillar of Nigeria’s constitutional democracy,” SERAP said.

It said the magnitude and nature of the findings required “urgent, independent and transparent action”, arguing that they raised fundamental questions about the custody, expenditure, accounting, safeguarding and recovery of public resources.

SERAP maintained that the CBN’s institutional independence could not be interpreted as immunity from constitutional audit, statutory accounting requirements, public financial oversight or investigation of credible allegations of financial misconduct.

“The CBN has clear legal obligations to account for each amount identified by the Auditor-General, explain the basis for each transaction, identify the persons or entities that received or benefited from the funds, and disclose measures taken to investigate, reconcile and recover any amount found to have been improperly paid or lost,” the organisation said.

The organisation also drew attention to other findings in the Auditor-General’s report concerning the CBN. The apex bank reportedly failed to account for seven boxes of “Awaiting Examination” currency notes.

The Auditor-General reportedly warned that the failure could lead to an increase in awaiting-examination currency notes and possible mismanagement of funds, and recommended sanctions for gross misconduct.

The report also flagged unserviceable vehicles abandoned at the CBN’s Lagos Branch, saying their condition had negatively affected branch operations.

The Auditor-General warned that the situation could result in inefficiency and delays in critical currency operations and asked the CBN to provide evidence of disposal and replacement of the vehicles.

Similarly, an unserviceable bullion van at the CBN’s Abeokuta Branch was reportedly left on the records of the branch. The Auditor-General reportedly requested evidence of its disposal and replacement.

SERAP said the findings raised concerns about transparency, accountability and responsible management of public resources.

It cited Section 15(5) of the 1999 Constitution, which requires the state to abolish all corrupt practices and abuse of power, as well as Section 13, which places responsibilities on all organs of government to conform to and observe the provisions of Chapter II of the Constitution.

The organisation also cited provisions of the CBN Act 2007 concerning the bank’s accounts, assets, financial reporting and management.

According to SERAP, Section 7(2) of the Act places responsibility on the Governor and Deputy Governors for ensuring that true accounts are kept of transactions entered into by the bank and its assets, liabilities and valuables entrusted to it.

It also referred to Sections 49 and 50 of the Act dealing with the audit of the CBN’s accounts and annual reporting requirements.

SERAP further cited Nigeria’s obligations under the United Nations Convention against Corruption concerning the proper management of public affairs and public funds.

It said Nigerians had a right to know the whereabouts and status of public funds and urged the CBN to take steps that would advance accountability, recovery and safeguards against the recurrence of any proven financial irregularities.