Falana Calls for Investigation into Alleged Diversion of $3.4bn IMF Loan

Renowned human rights lawyer, Femi Falana, SAN, has called for an urgent investigation into the alleged diversion of the $3.4 billion loan obtained by Nigeria from the International Monetary Fund (IMF) to combat the COVID-19 pandemic.

The IMF recently confirmed that Nigeria has fully repaid the loan, but outstanding charges—including net charges, basic interest, and administrative fees—amount to SDR 125.99 million (N275.28 billion). Falana has requested that the IMF suspend the collection of these charges pending the conclusion of an independent investigation.

In a statement issued on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to probe the handling of the emergency funds. He also called on the IMF Board to investigate the alleged failure of its management to ensure that the funds were used for their intended purposes.

According to a 2020 audit report released in January 2024, significant portions of the loan were allegedly mismanaged. The report states that $2.4 billion was transferred to the Central Bank of Nigeria’s (CBN) account at the Federal Reserve Bank of New York, while the remaining funds were sent to the Bank of China, Shanghai. By June 2020, these funds were reportedly moved to the Bank for International Settlements (BIS) and the Industrial and Commercial Bank of China (ICBC) for short-term investments, raising concerns about transparency and accountability.

Falana emphasized the need for proper governance arrangements, including public audits and independent reviews of crisis-related spending. He also criticized the National Assembly for failing to act on the audit report, which flagged irregularities in the loan’s management.