SERAP ECOWAS Court: Nigeria Sued Over N78.8bn Cash Transfer Diversion

• SERAP has sued the Nigerian Federal Government at the ECOWAS Court over N78.8 billion in alleged unaccounted social protection funds.
• The lawsuit, ECW/CCJ/APP/42/26, is based on the Auditor-General's 2024 report detailing financial irregularities in cash transfer programs.
• SERAP claims the government's failure to account for the funds violates Nigeria's international human rights obligations to vulnerable citizens.
• The organization seeks a comprehensive accounting, investigation, and recovery of the funds intended for over 3.2 million households.
• This case highlights the critical need for stringent financial oversight and accountability in government social welfare initiatives.

SERAP argues that the alleged financial irregularities could undermine the rights of vulnerable Nigerians to social security and an adequate standard of living, including access to food, clothing, and housing.

The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal proceedings against the Nigerian Federal Government before the ECOWAS Community Court of Justice. This action stems from allegations of diversion, irregular expenditure, and a failure to properly account for N78.8 billion designated for critical cash-transfer and social-protection programs.

The core of SERAP's complaint is rooted in findings documented within the Auditor-General of the Federation’s 2024 Annual Report, which was made public on August 7, 2026. This comprehensive report detailed financial irregularities spanning various periods from January 2023 through December 31, 2024. The specific government entities implicated in these allegations include the Ministry of Humanitarian Affairs and Poverty Reduction, the National Cash Transfer Office, and the National Social Safety Nets Coordinating Office.

Among the specific issues highlighted by the Auditor-General, N33.751 billion reportedly transferred to over 3.2 million households across 35 states in 2023 was questioned due to insufficient records to verify payments and reconcile beneficiary data. Furthermore, the report identified N36.744 billion in payments allegedly processed without proper prepayment audits, N4.616 billion in unsupported expenditures, N350.182 million allocated for enrolment activities, N89.511 million for store purchases, and N17.422 million in diesel advances, all contributing to the total sum under scrutiny.

Filed by SERAP's lawyers, Kolawole Oluwadare and Kehinde Oyewumi, the lawsuit, officially designated ECW/CCJ/APP/42/26, seeks a judicial declaration that the Federal Government's failure to account for these substantial funds constitutes a violation of Nigeria’s international human rights obligations. The organization contends that the alleged financial irregularities directly undermine the fundamental rights of vulnerable Nigerians to social security and an adequate standard of living, which includes access to essential provisions such as food, clothing, and housing.

Beyond a mere declaration, SERAP is petitioning the ECOWAS Court for several specific remedies. These include an order compelling the government to provide a comprehensive and transparent account of the questioned N78.8 billion, to thoroughly investigate all alleged irregularities, and to recover any funds determined to have been improperly spent or diverted. Additionally, SERAP seeks a directive for the government to implement stronger financial oversight mechanisms for all social-protection programs, emphasizing that the failure to investigate and recover misspent funds breaches its duty to protect vulnerable households.

This legal challenge holds significant implications for millions of Nigerians, particularly the over 3.2 million households across 35 states whose access to vital financial assistance has been directly impacted by the allegations raised in the Auditor-General's report. SERAP underscores that while cash-transfer programs are crucial tools for alleviating extreme poverty and enabling vulnerable populations to meet their basic needs, their effectiveness is contingent upon rigorous and transparent management of funds.

SERAP argues that the alleged financial irregularities could undermine the rights of vulnerable Nigerians to social security and an adequate standard of living, including access to food, clothing, and housing. The organization stresses that the right to social security cannot be genuinely realized if the state fails to establish and maintain robust systems for identifying beneficiaries, meticulously maintaining records, reconciling disbursements, monitoring expenditures, investigating any irregularities, and effectively remedying losses. This public-interest case aims to safeguard the interests of affected households and ensure accountability for public funds specifically allocated for their welfare.

This case signals increased legal scrutiny by civil society on government social welfare spending, particularly regarding transparency and human rights obligations. Lawyers advising government bodies or NGOs involved in social protection programs should anticipate potential litigation at regional courts like the ECOWAS CCJ and ensure stringent financial oversight and accountability mechanisms are in place to prevent similar challenges.

Source: Original reporting via The PUNCH