CBN Sued Over Missing $6.23 Million, ₦1.63 Trillion in Public Funds
CBN Sued Over Missing $6.23 Million, ₦1.63 Trillion in Public Funds
The Socio-Economic Rights and Accountability Project (SERAP) has initiated a lawsuit against the Central Bank of Nigeria (CBN) for not accounting for $6.23 million in election funds that are allegedly missing or misused, as well as over ₦1.63 trillion in other public funds.
This legal action comes after serious allegations were noted in Volume II of the Auditor-General of the Federation’s 2023 Annual Report, released on August 7, 2026. The report highlights issues from January to December 2023.
The missing funds include $6.23 million related to a suspected fraudulent request for election funding supposedly made by former President Muhammadu Buhari; more than ₦1.25 trillion in unrecovered loans from the CBN to state governments; ₦116.18 billion given to failing banks; and ₦262.86 billion allocated under the Anchor Borrowers’ Programme.
In the lawsuit numbered FHC/ABJ/CS/2450/2026, filed last Friday at the Federal High Court in Abuja, SERAP is asking for “an order of mandamus” to force the CBN to account for both the $6.23 million in questionable election funds and over ₦1.63 trillion in other public funds.
Additionally, SERAP wants an order of mandamus that would require the CBN to reveal details about the purposes of these funds, who benefited from them, their repayment status, recovery efforts, and results from the CBN’s internal investigation into the alleged election funding fraud.
SERAP is requesting “an order of mandamus to instruct and force the CBN to identify the officials and others responsible for approving and distributing the public funds in question, and to reveal any disciplinary or administrative actions taken.”
Additionally, SERAP is asking for “an order of mandamus that directs and compels the CBN to share records about the seven boxes of currency notes pending examination, as well as abandoned and unserviced vehicles at its Lagos branch and bullion vans at its Abeokuta branch.”
In this case, SERAP argues that “the accountability of public institutions, including the CBN, is an essential part of Nigeria’s constitutional democracy.”
SERAP also states that “the allegations made by the Auditor-General indicate serious violations of public trust, the Nigerian Constitution 1999 [as amended], the CBN Act, national anti-corruption laws, and Nigeria’s commitments under the UN Convention against Corruption.”
According to SERAP, “The extent and seriousness of these findings raise important questions about how public resources are kept, spent, accounted for, protected, and recovered.”
SERAP emphasizes that “the institutional independence of the CBN should not be seen as a shield against constitutional audits, legal accounting requirements, public financial oversight, access to information, or investigations into credible claims of fraud and other financial wrongdoing.”
The lawsuit filed for SERAP by its lawyers Kolawole Oluwadare, Kehinde Oyewumi, Andrew Nwankwo, and Kelechi Anwu states: “The findings regarding public resources on this scale identified by the Auditor-General demand a trustworthy investigation that can establish facts, determine who is responsible, and ensure recovery if public funds have been lost unlawfully.”
“The CBN must legally account for every amount pointed out by the Auditor-General. They need to explain each transaction, identify who received or benefited from the funds, and reveal what actions were taken to investigate, reconcile, and recover any money that was improperly paid or lost.”
“Public spending, including that of the CBN, should always be under effective constitutional oversight, transparency, and accountability. The large sums of public money noted by the Auditor-General as unrecovered or unaccounted for cannot escape these constitutional protections.”
“It is important for the public to have proper oversight over withdrawals, spending, investments, and accountability systems. The CBN’s management of public funds must continue to be transparent and follow appropriate safeguards.”
“The Auditor-General stated that the findings in the report covered various periods between January and December 2023.”
“In the 2023 audited report, the Auditor-General found that the Central Bank of Nigeria (CBN) did not investigate a reported fraud at its Abuja Branch Office that amounted to over $6.2 million [$6,230,000.00].”
“The internal audit of the CBN revealed that this money was spent based on a request for election funding supposedly made by Nigeria’s former President Muhammadu Buhari.
“However, the CBN did not provide the investigation report about the alleged fraud to the audit team for review and confirmation. The Auditor-General is worried that the money might have been ‘lost’ and that the payments could be ‘fraudulent.’ He wants to recover the funds and send them back to the treasury.”
“The CBN also did not retrieve over ₦1.2 trillion [₦1,252,095,444,724.82] in loans given to various states as part of ‘CBN intervention loans’ in 2023.”
The Auditor-General is concerned that this money may have been ‘used for personal reasons’ and suggests it should be recovered and returned to the treasury.”
“Reports indicate that the CBN did not collect over ₦116 billion [₦116,179,000,000.00] from loans given to struggling and closed banks.”
“The CBN also failed to show its 2023 audited or draft Financial Statements along with details of recoveries and outstanding balances related to loans given to distressed and liquidated banks for audit examination. The Auditor-General fears that this money may have been ‘misused.’”
“According to reports, the CBN spent over ₦262 billion [₦262,859,473,249.81] on the Anchor Borrowers’ Programme designed to assist farmers in boosting food production in the country. However, some of this money remains with certain ‘Anchors,’ which could interfere with achieving the program’s food security goals.”
“The CBN also did not provide a list or number of program beneficiaries nor an assessment of its impact for audit purposes. They have failed to recover a significant amount of money, raising concerns from the Auditor-General that it may have been ‘misappropriated.’”
“The Central Bank of Nigeria (CBN) reportedly did not account for the long-awaited seven boxes of Awaiting Examination (A/E) Currency Notes. The Auditor-General is concerned that this could result in an increase in currency notes waiting for examination and potential mismanagement of funds. They recommend that serious consequences be enforced for gross misconduct.”
“Additionally, the CBN allegedly left some unusable vehicles at its Lagos Branch. The Auditor-General pointed out that the state of these vehicles has hurt the smooth operation of the branch, given their important roles for the Bank.”
“The Auditor-General worries that this situation might cause inefficiency in Branch Operations and delays in completing essential currency tasks. They request that the CBN show proof of how these vehicles were disposed of or replaced.”
“Furthermore, it has been reported that the CBN abandoned an unusable bullion van at its Abeokuta Branch Office. This van still appears on the branch’s records. The Auditor-General shares similar concerns about possible inefficiencies in Branch Operations and delays in critical currency activities, urging the CBN to provide evidence regarding its disposal and replacement.”
“These findings raise larger questions about how well the CBN follows principles of transparency, accountability, and responsible management of public resources. Nigerians deserve to know where public funds are and their current status.”
“According to Section 15(5) of the Nigerian Constitution, the State must eliminate all corrupt practices and abuse of power. Section 13 also requires all government bodies to adhere to and apply the rules outlined in Chapter II of the Constitution.”
“The CBN Act of 2007 sets clear legal duties regarding the Bank’s accounts, assets, financial reporting, and management. According to Section 7(2) of the Act, the Governor and Deputy Governors are responsible for keeping accurate records of the transactions made by the Bank as well as its assets, liabilities, and any valuables it has been given.”
“Sections 27 to 32 of the CBN Act detail the main powers and functions of the Bank. Section 49 outlines how the Bank’s accounts should be audited, while Section 50 specifies what is required for the Bank’s annual accounts and reporting. These rules emphasize that the CBN’s finances must follow a legal framework for accounting, auditing, and being accountable to the public.”
“Nigeria has also made promises under the UN Convention against Corruption to ensure proper management of public resources. Articles 5 and 9 in this Convention require member states to create strong anti-corruption policies and manage public affairs and funds properly.”
“Finding those responsible for wrongdoing, making sure they face justice, and recovering any lost or unaccounted public money would benefit everyone and help stop impunity related to mismanagement of public resources.”
No date has been set for the hearing of the suit.
