SERAP sues FG over alleged ₦78.8bn cash transfer fund irregularities

Business Pointers

By Seun Ibiyemi

The Socio-Economic Rights and Accountability Project (SERAP) has sued the Federal Government at the ECOWAS Community Court of Justice over alleged diversion, irregular expenditure and failure to account for more than ₦78.8 billion allocated to federal cash-transfer and social-protection programmes.

The suit, numbered ECW/CCJ/APP/42/26, seeks to compel the government to account for the funds, investigate the alleged financial irregularities, recover any money established to have been improperly spent and ensure that vulnerable households receive their intended benefits.

The allegations are contained in the Auditor-General of the Federation’s 2024 Annual Report, published on August 7, 2026, covering financial activities between January 2023 and December 2024.

SERAP said the questioned funds involved the Ministry of Humanitarian Affairs and Poverty Reduction, the National Cash Transfer Office (NCTO) and the National Social Safety Nets Coordinating Office (NASSCO).

The organisation is asking the court to declare that the failure to account for the money and address the reported irregularities violates Nigeria’s international human rights obligations, particularly those relating to social security and an adequate standard of living.

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

According to SERAP, the Auditor-General’s report identified several categories of questionable transactions involving funds intended to support vulnerable households through federal cash-transfer initiatives.

The report questioned approximately ₦33.751 billion reportedly transferred to more than 3.2 million households across 35 states in 2023, with adequate documentation to verify payments and reconcile beneficiary records allegedly not provided.

It also identified ₦36.744 billion in payments reportedly made without prepayment audits and ₦4.616 billion in unsupported expenditure.

Other questioned transactions included ₦350.182 million allocated for enrolment, ₦89.511 million for store purchases and ₦17.422 million in diesel advances.

SERAP argues that the findings raise concerns about whether the funds were properly managed, whether beneficiaries received the intended assistance and whether effective mechanisms existed to prevent misuse of public resources.

The allegations have not, in themselves, established that the entire amount was diverted or stolen. SERAP is asking the court to compel the government to provide verifiable records and investigate the reported irregularities.

In the suit filed by its lawyers, Kolawole Oluwadare and Kehinde Oyewumi, the organisation argued that the government’s failure to investigate the questioned transactions, account for the funds and recover any amounts unlawfully spent could violate its obligations to protect vulnerable households.

“The failure to investigate the ₦78.8 billion cash-transfer scandal, account for the questioned funds and recover any unlawfully spent amounts violates Nigeria’s obligations to protect the human rights of vulnerable households,” the suit stated.

SERAP is seeking an order directing the Federal Government, through the NCTO, NASSCO and other relevant agencies, to provide a comprehensive account of the funds, including payment records, beneficiary details, verification documents and financial reconciliation records.

It is also asking the court to direct an independent, prompt and effective investigation into the identified irregularities, with the recovery of improperly spent, diverted or lost public funds where established.

The organisation further wants appropriate legal or administrative action taken against anyone found responsible, subject to due process.

In addition, SERAP is seeking an order compelling the government to strengthen financial accountability, beneficiary verification, auditing and oversight mechanisms to prevent a recurrence of similar problems.

SERAP maintains that the alleged financial management failures extend beyond administrative shortcomings because the funds were intended to help vulnerable Nigerians meet their basic needs.

It argues that inadequate beneficiary verification, incomplete records and failure to reconcile disbursements could undermine access to social-security benefits and the rights to an adequate standard of living, including food, clothing and housing.

The organisation also contends that failure to address the reported irregularities could affect the socio-economic rights of millions of Nigerians who depend on social-protection programmes.

According to SERAP, cash-transfer initiatives are designed to help households experiencing extreme poverty meet essential needs, making accountability for the resources allocated to them particularly important.

The suit relies on provisions of the African Charter on Human and Peoples’ Rights and the United Nations Convention against Corruption, which SERAP says require effective measures to protect public resources, promote transparent financial management and address corruption.

It also invokes the principles of equality and non-discrimination, arguing that failures in administering or verifying social-protection programmes could result in the exclusion of eligible beneficiaries or unequal access to assistance.

SERAP said the government had an obligation to ensure that the programmes were supported by reliable systems for identifying beneficiaries, maintaining records, monitoring expenditure, investigating irregularities and providing remedies where necessary.

The organisation said it had previously called on President Bola Tinubu and relevant authorities to address the Auditor-General’s findings.

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According to the suit, SERAP issued a public statement and sent a letter dated September 5, 2026, urging the President and relevant agencies to account for the questioned funds, publish audit records, investigate the reported irregularities and recover any money established to have been unlawfully spent or diverted.

It also requested payment and beneficiary records, verification documents and an explanation for missing REMITA records associated with the transactions.

SERAP said the deadline it gave the government to respond had expired without adequate action, prompting it to approach the ECOWAS court.

The organisation argues that the failure to provide satisfactory explanations or take effective corrective measures raises concerns about accountability and the protection of the rights of intended beneficiaries.

Beyond financial accountability, SERAP wants the court to direct the government to take effective steps to ensure that eligible vulnerable individuals and households receive the social-protection benefits intended for them.

It is also seeking appropriate remedies for any established adverse effects on their protected rights.

The organisation contends that public funds allocated to programmes addressing poverty must be administered in accordance with applicable legal and human rights obligations, with adequate safeguards against waste, misuse and improper expenditure.

The case will test SERAP’s arguments that failures to account for public funds earmarked for social protection, where they impair or threaten access to intended benefits, can engage Nigeria’s international human rights obligations.

The ECOWAS Community Court of Justice is yet to fix a hearing date for the case.

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