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Falana Demands Probe Of Alleged Diversion Of $3.4bn IMF Loan 

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Human Rights Lawyer and Senior Advocate of Nigeria, Femi Falana, has demanded a probe into what he described as the diversion of a $3.4 billion loan from the International Monetary Fund (IMF).

Falana made this known in a statement he signed yesterday.

Last week, the IMF confirmed that Nigeria had fully repaid the $3.4 billion in COVID-19 financial support it received under the Rapid Financing Instrument. Although Nigeria’s principal balance stands at zero, scheduled charges, including net charges, basic interest, and administrative fees, amount to SDR 125.99 million. At the current exchange rate, this translates to approximately N275.28 billion.

“It is pertinent to recall that in the wake of the COVID-19 in 2030, Nigeria requested emergency assistance of about US$3.4 billion — equivalent to 100 percent of its quota from the International Monetary Fund to shore up the country’s economy and help businesses weather the storm of a deadly pandemic that disrupted global markets and plunged the world into a recession,” Falana said.

At the meeting of the IMF Executive Board held on April 28, 2020, the financial support of $3.4 billion was approved to provide critical support to shore up Nigeria’s health care sector and shield jobs and businesses from the shock of the COVID-19 crisis. In particular, the loan was designed to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices and also help limit the decline in international reserves.

Following the Executive Board’s discussion of Nigeria, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, stated that, “The emergency financing under the RFI will provide much-needed liquidity support to respond to the urgent BOP needs. Additional assistance from development partners will be required to support the government’s efforts and close the large financing gap. The implementation of proper governance arrangements—including through the publication and independent audit of crisis-mitigating spending and procurement processes—is crucial to ensure emergency funds are used for their intended purposes.”(emphasis ours)

“Characteristically, the IMF Management, which jointly manages the neocolonial economy of Nigeria with the Federal Government, failed to ensure emergency funds were used “for their intended purposes.”

Recall that a 2020 audit report by the Office of the Auditor-General of the Federation, released in January 2024, flagged several irregularities in the handling of the fund. The report stated that on April 30, 2020, $2.4 billion of the loan was transferred to the CBN’s account at the Federal Reserve Bank of New York, while the remaining balance went to the CBN’s account at the Bank of China, Shanghai. The report further stated that by June 1, the $2.4 billion had been moved to the Bank for International Settlements (BIS) for short-term investments. The funds in China were similarly transferred to the Industrial and Commercial Bank of China.

“These transactions, according to the audit, were not supported by documentation or approvals from the Federal Government or the CBN’s Investment Committee, and the funds were subsequently reclassified as part of the CBN’s external reserves rather than the Federal Government’s holdings. This reclassification, the report noted, allowed interest to be earned on the funds, contrary to the emergency spending purpose for which they were approved,” Falana argued.

Speaking further, Falana noted that the report stated that on August 7, 2020, the Federal Ministry of Finance requested the monetisation of $700 million to support the 2020 federal budget. One week later, the CBN approved a debit of N265.65 billion, applying an exchange rate of N379.5/$, higher than the official N360.5/$ rate at the time. The funds were credited to three separate accounts: N252 billion to the COVID-19 Public Sector Account, N13.3 billion to the Forex Equalisation Account, and N350 million to the Exchange Commission Account.

“The audit noted that a 2% commission was deducted from the monetised amount, even though the funds were categorised as Federal Government property. At the end of 2020, an unmonetised balance of $2.7 billion — equivalent to approximately N1.02 trillion — remained unaccounted for, according to the Auditor-General’s report.

“The report recommended that the CBN Governor should explain the movement and classification of the funds without proper authorisation. It also requested bank statements to confirm the unmonetised balance and demanded the recovery of N13.3 billion and N350 million into the Federal Government’s account. It further called for the remittance of all interest earned from the investments and warned that sanctions under relevant financial regulations would be applied if there was no accountability.” the senior lawyer stated.

According to Falana, the Auditor-General wants the money recovered and remitted to the public treasury, and for the evidence of remittance to be forwarded to the Public Accounts Committee of the National Assembly.

He also said the Auditor-General also recommended that anyone suspected to be involved should be ‘sanctioned and handed over to the EFCC and ICPC for investigation and prosecution, as provided for in paragraph 3112 of the Financial Regulations’.

“Even though the Auditor-General of the Federation submitted the 2020 Annual Report to to each House of the National Assembly, both Houses have failed to cause the report to be considered by the committees responsible for public accounts, to cover up the criminal diversion of the $3.4 IMF and several trillions of Naira set out in the Auditor-General’s report, in utter contravention of section 85(5) of the Constitution of the Federal Republic of Nigeria as amended.

“Given the foregoing, the Alliance on Surviving Covid-19 and Beyond hereby calls on the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to investigate the criminal diversion of the $3.4 billion loan obtained by Nigeria to fight the Covid-19 pandemic.

“We also call on the IMF Board to probe the deliberate refusal of its management to ensure that the emergency funds were used for their intended purposes.” Meanwhile, the IMF should suspend the collection of the scheduled charges, including net charges, basic interest, and administrative fees, amounting to SDR 125.99 million (N275.28 billion) pending the conclusion of its investigation,” he said.

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Learn How To Form Coalition Party From Tinubu, Sowunmi Tells Atiku 

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Spokesman to former Vice President Atiku Abubakar, and chieftain of the People’s Democratic Party (PDP), Mr Segun Sowunmi, has advised his principal, Atiku, to learn from President Bola Tinubu on how to form a coalition.

The Tide reports that in a bid to wrest power from President Tinubu in 2027, Atiku has been leading the movement by opposition politicians to form a coalition of political parties ahead of the next general election.

Last month, opposition politicians set up a team comprising former Minister of Transpiration, Rotimi Amaechi, and former Governor of Cross River State, Liyel Imoke, to decide whether to float a new party or fuse into an existing platform.

While the main opposition party, PDP, struggles with a perennial leadership crisis, the former Vice President is bent on establishing another political force to take power from the ruling party in 2027.

But Sowunmi, who has been Atiku’s ally for many years, disagrees with his move, saying instead of forming a coalition with another political platform, he should coalesce opposition politicians into the PDP.

Speaking during an interview on TVC on Tuesday, Sowunmi, who was Atiku’s campaign spokesperson in the last election, asked his principal to learn from President Tinubu on how to form a coalition.

Sowunmi believes Atiku, having benefitted from the PDP as a former Vice President and getting the party’s presidential ticket twice, should not seek to form a coalition that will not have the PDP as its base.

He said, “I’ve always said to people, people love with their hearts. I love atiku with my bones. But I can’t help him against himself. You can’t run vice presidency on PDP two times with Obasanjo, get presidential candidate on that same party two times. I don’t agree with him that the next best thing is to be shopping for…(a platform) If you want a coalition, why are you not coalescing them into your party?” he asked.

The former PDP governorship candidate in Ogun State advised the ex-VP to learn from Tinubu on how to build a coalition without dumping his political party.

“Look at your rival, your friend. You guys started together. At best, even if you want to say he’s building a coalition is he not coalescing opponents into his place”? Sowunmi asked again.

The PDP chieftain, who recently showered praises on Tinubu after he visited him, said the President has an “uncanny ability to make everybody individually feel special” regardless of political affiliations.

His words: “That guy (Tinubu) is something oh, he has this uncanny ability to make everybody individually feel special. It doesn’t matter whether you are a former foe or a president’s friend, every moment you share with him, I don’t know how he does it, though you’re going to leave the place feeling that you matter, feeling that he gets it, feeling that what you guys are talking about is important. And there’s something about him, when he gives you his word, he will say something like ‘ko le ye’, meaning that to the best of human ability, it will stand.”

Meanwhile, there have been conversations about Sowunmi’s political stance as many questioned his relationship with Atiku, with whom he shares a longstanding political relationship.

Asked about his relationship with Atiku following his meeting with Tinubu, Sowunmi said he doesn’t know if the former Vice President is upset.

“I don’t know whether Atiku is upset or not upset, but I know a lot of our followers are talking a lot of nonsense, and I’m wondering how I became attached to Atiku when I’ve been in PDP since 1999 never leaving,” he responded.

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FIRS Introduces New SOP To End Tax Confusion Nationwide 

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The Federal Inland Revenue Service (FIRS) has introduced a new Standard Operating Procedure (SOP) to fix inconsistencies in tax services across its over 300 offices nationwide.

The move aims to make tax processes clearer, more transparent, and easier for Nigerians.

In a statement, Special Adviser on Communications and Advocacy to the FIRS Executive Chairman, Mr. Collins Omokaro, said the updated SOP is a key part of the agency’s plan to improve taxpayer experience.

He explained that, in the past, different FIRS offices used different methods, which often confused taxpayers.

“This is about people, experience, and impact. It’s a step towards a tax system that supports voluntary compliance and national development,” Omokaro said.

The new SOP provides a single guide for key processes like registration, payment, audit, and enforcement. This will ensure all FIRS offices follow the same steps, making the system fairer and more predictable.

FIRS Executive Chairman, Dr. Zacch Adedeji, described the SOP as more than just a set of rules.

“This SOP is not just a technical document; it is a declaration of who we are becoming as a service. It reflects our commitment to transparency and service to the Nigerian people,” he said.

The SOP also supports FIRS’s digital transformation, combining human and technological systems to deliver faster and more reliable services. It will also improve internal efficiency by providing clear guidance and better training for staff.

“With this rollout, every FIRS staff member has a clear mandate: study it, apply it, and embody it. That’s how we’ll earn the trust of Nigerians,” Omokaro added.

The reform is part of FIRS’s efforts to become a more service-driven organisation, focused on clarity, consistency, and national growth. The agency hopes the new SOP will make tax services better for Nigerians and increase public trust in the system.

 

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FG Working Towards World-Class Public Service -Walson-Jack 

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The Head of the Civil Service of the Federation (HCSF), Mrs Didi Walson-Jack, says the Federal Government is committed to building a world-class public service in Nigeria.

Walson-Jack made this known in  Abuja, on Wednesday, at a World Press Conference ahead of the International Civil Service Conference and the African Public Service Week scheduled for June 25 to 26 in Abuja.

She said a recent study tour to Singapore was part of preparatory activities aimed at positioning Nigeria’s civil service for excellence and attracting global participation in the upcoming events.

“The study tour to Singapore was the first major activity we undertook under the collaboration between the Office of the Head of Civil Service of the Federation and the Heads of Service of the 36 states and the FCT,” she said.

According to her, the visit, supported by the United Nations Development Programme (UNDP), involved 20 State Heads of Service and was designed to benchmark best global practices and enhance Nigeria’s public service delivery.

“The idea was born out of our ongoing collaboration, where we share ideas and knowledge across federal and state levels.

“Singapore was chosen because it is globally recognised for excellence in public service,” she explained.

Walson-Jack noted that the second phase of the tour will involve the remaining 17 heads of service later this year.

She said the tour provided participants with the opportunity to engage with both public and private sector institutions in Singapore, compare administrative practices, and gain insights into global standards.

“It was an eye-opener and a capacity-building opportunity.

“Since our return, several state civil services have begun implementing reforms in collaboration with the federal service, particularly in areas such as capability development and digital transformation,” she added.

Walson-Jack further disclosed that Nigeria would host a reciprocal study tour during the upcoming African Public Service Week, where foreign delegates will engage with various federal institutions.

“They will see firsthand our digitalisation efforts, performance management systems, and other reform initiatives aimed at transforming our civil service.

“We hope the experience will inspire similar actions in their home countries,” she said.

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