SERAP sues CBN over failure to account for $6.23m in ‘missing’ election funds, ₦1.63trn in other public funds

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over its “failure to account for US$6.23 million in allegedly diverted or unaccounted-for election funds and over ₦1.63 trillion in other public funds.”

The lawsuit followed allegations contained in Volume II of the Auditor-General of the Federation’s 2023 Annual Report, published on 7 August 2026. The findings relate to various periods between January and December 2023.

The funds in question include US$6.23 million in payments linked to an allegedly fraudulent election-funding request purportedly made by former President Muhammadu Buhari; more than ₦1.25 trillion in outstanding CBN intervention loans to state governments; ₦116.18 billion in loans to distressed and liquidated banks; and ₦262.86 billion disbursed through the Anchor Borrowers’ Programme.

In suit number FHC/ABJ/CS/2450/2026, filed last Friday at the Federal High Court in Abuja, SERAP is seeking “an order of mandamus to direct and compel the CBN to account for US$6.23 million in allegedly diverted or unaccounted-for election funds and over ₦1.63 trillion in other public funds.”

The organisation is also asking the court for “an order of mandamus to direct and compel the CBN to disclose the purposes, beneficiaries, repayment status, recovery measures and findings of the CBN’s internal investigation into the alleged election-funding fraud.”

SERAP further seeks “an order of mandamus to direct and compel the CBN to identify the officers and other persons responsible for approving and disbursing the affected public funds, and disclose the disciplinary or administrative action taken.”

It is also requesting “an order of mandamus directing and compelling the CBN to disclose records concerning the seven boxes of currency notes awaiting examination, as well as abandoned and unserviced vehicles at its Lagos branch and bullion vans at its Abeokuta branch.”

In its court filing, SERAP argues that, “The accountability of public institutions, including the CBN, is a crucial pillar of Nigeria’s constitutional democracy.”

The organisation also maintains that, “These allegations by the Auditor-General suggest grave violations of the public trust, the provisions of the Nigerian Constitution 1999 [as amended], the CBN Act, national anti-corruption laws and Nigeria’s obligations under the UN Convention against Corruption.”

SERAP said, “The magnitude and nature of these findings raise fundamental questions about the custody, expenditure, accounting, safeguarding and recovery of public resources.”

It added that, “The CBN’s institutional independence cannot reasonably be understood as immunity from constitutional audit, statutory accounting requirements, public financial oversight, access to information or investigation of credible allegations of fraud and other financial misconduct.”

The suit, filed on behalf of SERAP by its lawyers Kolawole Oluwadare, Kehinde Oyewumi, Andrew Nwankwo and Kelechi Anwu, states that, “The findings involving public resources on the scale identified by the Auditor-General require credible investigation capable of establishing the facts, identifying responsibility and securing recovery where public funds have been unlawfully lost.”

It further states that, “The CBN has 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 lawyers also argued that, “The spending of public funds, including by the CBN, must remain subject to effective constitutional oversight, transparency and accountability. The substantial public funds identified by the Auditor-General as unrecovered, unaccounted for or otherwise requiring explanation cannot be insulated from constitutional safeguards.”

They added that, “The public interest requires meaningful oversight of withdrawals, expenditure, investment and accountability mechanisms. The ongoing management of public funds by the CBN must remain transparent and subject to appropriate safeguards.”

According to SERAP, “According to the Auditor-General, the findings in the report variously covered the period between January and December 2023.”

The organisation said the Auditor-General’s 2023 report found that the CBN failed to “investigate an alleged fraud at its Abuja Branch Office, amounting to over $6.2 million [$6,230,000.00].”

It further quoted the report as stating that the “CBN internal audit disclosed that the money was spent based on a request for election funding purportedly made by the immediate past President of Nigeria [Muhammadu Buhari].”

However, “the CBN failed to make the investigation report of the alleged fraud available to the audit team for scrutiny and confirmation.” The Auditor-General reportedly feared that the funds might have been “lost” and that the payments could have been “fraudulent”. He recommended that the money be recovered and returned to the treasury.

The CBN also reportedly failed to recover more than ₦1.2 trillion [₦1,252,095,444,724.82] in “CBN interventions loan granted to different states in 2023.”

The Auditor-General expressed concern that the money might have been “diverted to private purposes” and recommended that it be recovered and remitted to the treasury.

According to the report, the CBN also failed to “recover over ₦116 billion [₦116,179,000,000.00] of loans granted to distressed and liquidated banks.”

It reportedly failed to “present its 2023 audited or draft Financial Statements and schedule of recoveries and outstanding balance against loans granted to distressed and liquidated banks to the audit team for scrutiny.” The Auditor-General feared that the funds might have been “diverted”.

The report also stated that the CBN “spent over ₦262 billion [₦262,859,473,249.81] on Anchor Borrowers’ Programme meant to support farmers to ensure food production in the country.” However, “the money remain in the hands of some ‘Anchors,’” which “could hamper the intended food-security objectives of the programme.”

The CBN also reportedly “failed to provide the list and number of beneficiaries of the programme and the impact of the programme for audit assessment.” The report added that the bank had “failed to recover the money, which is quite a significant amount.” The Auditor-General feared the funds might have been “diverted to private purposes.”

The CBN was also said to have failed to “account for the long overdue seven (7) boxes of Awaiting Examination (A/E) Currency Notes.” The Auditor-General warned that this “may lead to increase in awaiting examination currency notes” and “mismanagement of funds”, recommending that “sanctions [be] imposed for gross misconduct.”

The report further stated that the CBN had “abandoned some unserviceable vehicles at its Lagos Branch.” The Auditor-General noted that the condition of the vehicles had disrupted the branch’s operations, given their strategic importance to the bank.

The Auditor-General warned that this “may lead to inefficiency in the Branch Operations and Delay in meeting critical currency operations” and called on the CBN to “provide evidence of disposal [and] replacements of the vehicles.”

The CBN was also reported to have “abandoned the unserviceable bullion van at its Abeokuta Branch Office.” The vehicle remained on the branch’s records despite being unserviceable. The Auditor-General similarly warned that this “may lead to inefficiency in the Branch Operations and Delay in meeting critical currency operations” and urged the bank to “provide evidence of disposal [and] replacements of the vehicles.”

SERAP said, “The findings raise broader concerns about the CBN’s compliance with principles of transparency, accountability and responsible management of public resources. Nigerians have the right to know the whereabouts and status of public funds.”

The organisation also cited “Section 15(5) of the Nigerian Constitution,” which requires the State to “abolish all corrupt practices and abuse of power.” It added that Section 13 of the Constitution requires all organs of government to conform to, observe and apply the provisions of Chapter II.

SERAP further referred to the CBN Act 2007, which establishes statutory responsibilities relating to the bank’s accounts, assets, financial reporting and management. Section 7(2) of the Act assigns responsibilities to the Governor and Deputy Governors, including ensuring that proper accounts are maintained for the bank’s transactions, assets, liabilities and valuables entrusted to it.

The organisation also cited Sections 27 to 32 of the CBN Act, which outline the bank’s principal powers and functions. Section 49 provides for the auditing of the bank’s accounts, while Section 50 sets out requirements for its annual accounts and reporting. According to SERAP, these provisions establish a statutory framework for accounting, auditing and public accountability.

It also argued that “Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources.” Articles 5 and 9 of the convention require state parties to develop effective anti-corruption policies and ensure the proper management of public affairs and public funds.

SERAP said, “Identifying those responsible, ensuring that any perpetrators are brought to justice, and securing the full recovery of any missing or unaccounted-for public funds would serve the public interest and help to address impunity for the mismanagement of public resources.”

No date has been fixed for the hearing of the suit.