SERAP Sues CBN: Demands $6.23M Election Funds Accountability

• SERAP has sued the Central Bank of Nigeria over its alleged failure to account for $6.23 million in election funds and over N1.63 trillion in other public funds.
• The lawsuit, FHC/ABJ/CS/2450/2026, is based on critical findings from the Auditor-General of the Federation’s 2023 annual report.
• SERAP seeks a court order compelling the CBN to disclose beneficiaries, repayment status, and identify officials responsible for the funds.
• The unaccounted funds include unrecovered intervention loans to state governments, loans to distressed banks, and money from the Anchor Borrowers’ Programme.
• The organization argues that CBN's accountability is crucial for Nigeria's constitutional democracy and anti-corruption efforts.

The outcome of FHC/ABJ/CS/2450/2026 could establish important precedents regarding the disclosure obligations of government agencies and the enforcement mechanisms available when public funds are allegedly mismanaged or unaccounted for.

The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Central Bank of Nigeria (CBN), seeking accountability for substantial public funds. The lawsuit, filed on a Friday in October 2026 at the Federal High Court in Abuja, specifically targets the CBN's alleged failure to provide a comprehensive account for $6.23 million in election-related funds and an additional sum exceeding N1.63 trillion in other public monies. This legal challenge, identified as case number FHC/ABJ/CS/2450/2026, stems directly from critical findings detailed in Volume II of the Auditor-General of the Federation’s 2023 annual report, which was publicly released on August 7, 2026.

SERAP's legal petition seeks an order of mandamus, compelling the Central Bank of Nigeria to undertake several critical actions regarding the identified funds. The organization demands a full accounting for the $6.23 million in allegedly diverted or unaccounted-for election funds, as well as the over N1.63 trillion in other public monies. Furthermore, SERAP insists that the CBN disclose the specific purposes for which these funds were allocated, identify all beneficiaries, and provide detailed information on their repayment status and any recovery measures that have been implemented.

The lawsuit extends its demands to include the identification of all officials and other individuals responsible for authorizing and disbursing the affected funds. SERAP also seeks disclosure of any disciplinary or administrative actions taken against these individuals. In a broader push for transparency, the organization is requesting that the CBN reveal the findings of its internal investigation into the alleged election-funding fraud. Additionally, the suit calls for the disclosure of records pertaining to seven boxes of currency notes awaiting examination, unserviceable vehicles located at the CBN's Lagos branch, and a bullion van situated at its Abeokuta branch, indicating a comprehensive probe into the bank's operational integrity.

According to SERAP, the accountability of public institutions, including the Central Bank of Nigeria, represents a fundamental pillar of Nigeria's constitutional democracy. The organization argues that the allegations presented by the Auditor-General suggest severe breaches of public trust, alongside violations of the 1999 Nigerian Constitution (as amended), the CBN Act, national anti-corruption legislation, and Nigeria's commitments under the UN Convention against Corruption. These findings, SERAP contends, raise profound questions concerning the management, custody, expenditure, accounting, safeguarding, and recovery of public resources.

The legal team representing SERAP, comprising Kolawole Oluwadare, Kehinde Oyewumi, Andrew Nwankwo, and Kelechi Anwu, asserts that the scale of public resources implicated by the Auditor-General's report necessitates a credible and thorough investigation. Such an inquiry, they argue, is essential for establishing the facts, assigning responsibility, and ensuring the recovery of any public funds that may have been unlawfully lost. The suit emphasizes the CBN's explicit legal obligations to account for every amount identified by the Auditor-General, to clarify the basis for each transaction, to name the recipients or beneficiaries of the funds, and to detail the steps taken to investigate, reconcile, and recover any improperly paid or lost amounts. Specifically concerning the alleged election-funding fraud, SERAP highlights the Auditor-General's finding that the CBN failed to adequately address the issue.

This lawsuit, initiated by the Socio-Economic Rights and Accountability Project, underscores a critical push for enhanced transparency and accountability within Nigeria's financial governance structures. The focus on the Central Bank of Nigeria, a key national institution, signals a growing demand for rigorous oversight of public funds, particularly those flagged in official audit reports. The case highlights the significant role of the Auditor-General's annual report as a catalyst for legal action, transforming audit findings into actionable demands for judicial intervention.

The outcome of FHC/ABJ/CS/2450/2026 could establish important precedents regarding the disclosure obligations of government agencies and the enforcement mechanisms available when public funds are allegedly mismanaged or unaccounted for. It reinforces the principle that public institutions are not immune from scrutiny and must adhere strictly to constitutional and statutory provisions governing financial integrity. The pursuit of an order of mandamus in this context demonstrates a commitment to ensuring that those responsible for public resources are held to the highest standards of probity and that mechanisms for recovery and redress are effectively utilized.

This lawsuit signals increased judicial scrutiny over public fund management and transparency within Nigerian institutions. Lawyers advising financial institutions, government agencies, or involved in public interest litigation should monitor this case for precedents on accountability, disclosure obligations, and potential enforcement actions stemming from Auditor-General reports. Compliance officers should review internal controls and record-keeping for public funds to mitigate exposure to similar demands for transparency.

Source: Original reporting based on a PUNCH news article.