SERAP Demands CBN: Account for $6.23M Election Funding, N1.63T Other Funds

• SERAP has given CBN Governor Olayemi Cardoso seven days to explain the alleged expenditure of $6.23 million on election funding and account for over N1.63 trillion in other public funds.
• The demand is based on Volume II of the Auditor-General of the Federation’s 2023 Annual Report, published on August 7, 2026.
• The N1.63 trillion includes N1.25 trillion in unrecovered intervention loans to states, N116.18 billion in unrecovered loans to banks, and N262.86 billion in Anchor Borrowers’ Programme funds held by anchors.
• SERAP is demanding details on beneficiaries, utilization, and recovery efforts for these funds, threatening legal action if the CBN fails to comply.
• The Auditor-General's report also noted the CBN's failure to provide an investigation report for the $6.23 million election funding and to present its 2023 audited financial statements.

The accountability of public institutions, including the CBN, is an indispensable cornerstone of Nigeria’s constitutional democracy.

The Central Bank of Nigeria (CBN) and its Governor, Olayemi Cardoso, have been issued a seven-day ultimatum by the Socio-Economic Rights and Accountability Project (SERAP) to provide a comprehensive account for $6.23 million allegedly spent on election funding and an additional N1.63 trillion in various public funds. This demand, conveyed in a letter dated September 26, 2026, and signed by SERAP's Deputy Director, Kolawole Oluwadare, warns of impending legal action should the apex bank fail to furnish the requested explanations within the specified timeframe.

SERAP's intervention stems from critical observations detailed in Volume II of the Auditor-General of the Federation’s 2023 Annual Report, which was made public on August 7, 2026. The human rights organization asserts that the report uncovers significant financial discrepancies and a lack of transparency regarding substantial public expenditures managed by the CBN. The allegations underscore a pressing need for greater Nigeria public funds accountability, particularly concerning the management of intervention programs and other financial operations.

According to SERAP, the Auditor-General's report highlights several areas of concern regarding the CBN's financial stewardship. A significant portion of the N1.63 trillion in question includes N1.25 trillion (specifically N1,252,095,444,724.82) in intervention loans extended to various state governments, which the CBN reportedly failed to recover in 2023. The Auditor-General expressed serious apprehension that these funds might have been diverted for private purposes, recommending their immediate recovery and remittance to the national treasury.

Further scrutiny by the Auditor-General revealed N116.18 billion (N116,179,000,000) in loans granted to distressed and liquidated banks that the CBN also allegedly failed to retrieve. The report also flagged N262.86 billion (N262,859,473,249.81) disbursed under the Nigeria Anchor Borrowers Programme audit, noting that these funds remained with various anchors rather than reaching their intended beneficiaries or being properly accounted for. The CBN's failure to present its 2023 audited or draft financial statements, along with schedules of recoveries and outstanding balances on these loans, to the audit team further compounded these concerns.

Regarding the $6.23 million election funding, the Auditor-General's report indicated that the CBN's internal audit had recorded this expenditure as being made based on a purported request from former President Muhammadu Buhari. However, the CBN allegedly did not provide its internal investigation report concerning this matter to the Auditor-General's audit team for verification and scrutiny. Additionally, the audit report raised concerns about the CBN's inability to account for seven boxes of "Awaiting Examination" currency notes and several abandoned unserviceable vehicles located at its Lagos and Abeokuta branches, pointing to broader systemic issues within the institution.

In response to these findings, SERAP has urged Governor Cardoso and the CBN to take decisive action. Specifically, the organization demands the disclosure of beneficiaries for the intervention loans to states, the exact amounts disbursed, and the steps taken for CBN intervention loans recovery. For the Anchor Borrowers’ Programme, SERAP seeks details on beneficiaries, participating anchors, amounts released, utilization of funds, monitoring arrangements, and recovery measures.

Concerning the $6.23 million election funding, SERAP insists that the CBN account for the expenditure and publicly release the findings of its internal investigation into the alleged fraud. Beyond financial disclosures, the organization has called for the identification of individuals responsible for any misappropriated funds, appropriate disciplinary actions, and the referral of suspected criminal conduct to relevant anti-corruption bodies, including the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). SERAP also advocates for an independent forensic reconciliation of all sums identified in the audit report and the diligent preservation of all pertinent records.

The allegations stemming from the CBN Auditor-General 2023 report and the subsequent Olayemi Cardoso SERAP demand underscore a critical juncture for Nigeria's financial governance. The potential diversion of significant public funds, as highlighted by the Auditor-General, erodes public trust and undermines efforts towards economic stability and development. SERAP's firm stance reflects a fundamental belief that the accountability of public institutions, including the CBN, is an indispensable cornerstone of Nigeria’s constitutional democracy.

This situation signals heightened regulatory scrutiny and the potential for extensive anti-corruption investigations. For compliance officers and legal counsel within entities involved in CBN intervention programs or managing public funds, this serves as a crucial reminder to ensure their records are meticulously maintained and audit-ready. The integrity of Nigeria's financial system hinges on transparent operations and the diligent recovery of public resources, making SERAP's ultimatum a significant call for upholding the principles of good governance and financial probity.

Compliance officers and legal counsel for entities involved in CBN intervention programs or public funds management should review their records for audit readiness, as SERAP's ultimatum signals heightened regulatory scrutiny and potential anti-corruption investigations stemming from the Auditor-General's report.

Source: Original reporting via Punch Newspaper