Femi Falana Calls for Probe into Alleged Misuse of $3.4bn IMF Loan

 Renowned human rights lawyer Femi Falana has demanded a thorough investigation into the alleged diversion of a $3.4 billion loan secured from the International Monetary Fund (IMF) in 2020, accusing Nigerian authorities of mismanaging funds intended for economic recovery. In a statement issued in Lagos on May 8, 2025, Falana called for transparency and accountability, highlighting the loan’s critical role in addressing Nigeria’s post-COVID economic challenges.

The $3.4 billion facility, part of the IMF’s Rapid Financing Instrument, was disbursed to support Nigeria’s balance of payments and mitigate the pandemic’s economic impact. Falana alleges that significant portions of the loan were unaccounted for, with no tangible evidence of its deployment in critical sectors like healthcare, education, or infrastructure. He cited reports from the Auditor-General’s office, which flagged discrepancies in the loan’s management, including unverified expenditures and transfers to unauthorized accounts. The lawyer argued that such mismanagement exacerbates Nigeria’s debt burden, which stood at $103 billion by late 2024.

Falana’s demand follows years of scrutiny over Nigeria’s handling of external loans. He referenced a 2023 Central Bank of Nigeria report indicating that the loan was deposited into the federation account but lacked detailed expenditure records. The lawyer accused successive administrations of failing to implement IMF-recommended reforms, such as subsidy removal and currency flotation, which were conditions for the loan. He also pointed to allegations that funds were diverted to private accounts or used for political patronage, undermining public trust in governance.

The call for a probe has reignited debates about Nigeria’s fiscal discipline. Falana urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) to investigate, demanding that culprits face prosecution. He also appealed to the National Assembly to exercise its oversight functions, summoning officials from the Ministry of Finance and the Central Bank to explain the loan’s utilization. The lawyer proposed an independent audit by international forensic experts to ensure impartiality, given the scale of the alleged fraud.

Public discontent over the issue is mounting, as Nigeria grapples with inflation, unemployment, and a weakening naira. The IMF has expressed concern over Nigeria’s loan management, warning that failure to account for funds could jeopardize future assistance. Falana’s advocacy aligns with his long-standing campaign against corruption, having previously challenged fuel subsidy scams and illicit financial flows. As pressure builds for accountability, the government faces a critical test of its commitment to transparency, with implications for Nigeria’s economic stability and international credibility.