Tinubu Sued Over Failure To Probe ‘Missing’ $3.4bn IMF Loan

The Socio-Economic Rights and Accountability Project (SERAP) has sued President Bola Tinubu over failure to probe alleged missing $3.4 billion loan obtained by Nigeria from the International Monetary Fund (IMF) to finance the country’s budget and respond to COVID-19 pandemic.

According to SERAP in a statement on Sunday, the allegations are contained in the recently published 2020 Nigeria’s annual audited report by the Auditor-General of the Federation.

SERAP had early in February asked Tinubu to probe the allegations by directing the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, and appropriate anti-graft agencies to probe the allegations.

In the suit number FHC/ABJ/CS/269/2024 filed last Friday at the Federal High Court, Abuja, SERAP is asking the court to direct and compel Tinubu to probe the allegations.

The organisation is also seeking an order of mandamus to direct and compel Tinubu to ensure the ‘effective prosecution’ of anyone suspected to be responsible for the alleged mismanagement and diversion of the loan.

SERAP is further seeking an order of mandamus to direct and compel Tinubu to ensure the full recovery of the ‘missing’ loan.

SERAP argues that investigating the allegations, bringing suspected perpetrators to justice and recovering any missing IMF loan would contribute to addressing the country’s economic crisis and debt burden.

The suit filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Andrew Nwankwo, read in part: “There is a legitimate public interest in ensuring justice and accountability for these serious allegations. Granting the reliefs sought would end the impunity of perpetrators and ensure justice for victims of corruption.

“Granting the reliefs sought would facilitate the effective implementation of the recommendations by the Auditor-General in the 2020 annual report that the missing $3.4 billion IMF loan be fully recovered and remitted to the public treasury and those responsible be ‘sanctioned and handed over to anticorruption agencies’.

“The allegations of corruption in the spending of IMF loan documented by the Auditor-General undermine economic development of the country, trap the majority of Nigerians in poverty and deprive them of opportunities.

“According to the 2020 annual audited report by the Auditor-General of the Federation published last week, the US$3.4 billion emergency financial assistance obtained from the International Monetary Fund (IMF) to finance the budget and respond to the COVID-19 pandemi is missing, diverted or unaccounted for.

“According to the Auditor-General, no information or document was provided to justify the movement and spending of the Fund.

“According to SERAP’s information, Nigeria has signed an agreement to spread the repayment of the IMF loan/interests from 2023 to 2027. The first installment, due in 2023, is worth $497.17 million. The second instalment, due in 2024, will be worth $1.76 billion. The third installment, due in 2025, will be worth $865.27 million.

“The final two instalments, due in 2026 and 2027, will each be worth $33.99 million. These instalments will only be interest payments.

“Impunity for corruption in the management of loans obtained by Nigeria will continue as long as high-ranking public officials go largely unpunished for their alleged crimes.

“The consequences of corruption are felt by citizens on a daily basis. Corruption exposes them to additional costs to pay for health, education and administrative services.”

Meanwhile, no date has been fixed for the hearing of the suit.