SERAP Demands CBN Accountability over Alleged $6.23m and ₦1.63trn Diversion

In a bold move that has reignited calls for greater transparency, the Society for the Enforcement of Real Accountability and Performance (SERAP) has demanded CBN accountability over the alleged diversion of $6.23 million and ₦1.63 trillion from government‑backed programmes. The civil society group addressed a letter to Governor Godwin Emefiele, urging the Central Bank of Nigeria (CBN) to disclose the full details of the funds disbursed under the Anchor Borrowers’ Programme (ABP), including the names and numbers of beneficiaries and participating anchors.

Background to the controversy

The Anchor Borrowers’ Programme, launched in 2015, was designed to boost agricultural production by providing smallholder farmers with access to credit, inputs and guaranteed markets. Over the years, the ABP has been hailed as a catalyst for food security and rural employment, but it has also attracted scrutiny over the opacity of its funding channels.

According to SERAP’s recent statement, the CBN has so far disbursed ₦262.86 billion under the ABP. However, the group alleges that a substantial portion of the money – amounting to $6.23 million (approximately ₦2.5 billion) and a further ₦1.63 trillion – has been diverted or misappropriated. The claim is based on documents obtained from whistle‑blowers within the banking sector, though the exact mechanisms of the alleged diversion remain unclear.

What SERAP is demanding

SERAP’s letter to Governor Emefiele contains three core demands:

1. Immediate public disclosure of the full list of ABP beneficiaries and the anchors that received funding.
2. A forensic audit of all transactions related to the $6.23 million and ₦1.63 trillion in question.
3. Legal action against any individuals or entities found to have misappropriated the funds.

The group argues that without such transparency, the public cannot trust the CBN’s stewardship of public resources, especially as Nigeria continues to grapple with high inflation, a volatile naira and mounting external debt.

Why the issue matters for Nigerians

Financial transparency is more than a bureaucratic concern; it directly impacts everyday Nigerians. The ABP is meant to empower smallholder farmers, many of whom live below the poverty line. If funds are siphoned off, the intended beneficiaries lose out on credit, seeds and training, perpetuating cycles of poverty and food insecurity.

Moreover, the alleged diversion of $6.23 million—an amount that could fund several large‑scale infrastructure projects—highlights a broader governance challenge. In 2026, the Nigerian government has pledged to improve fiscal discipline and attract foreign investment. Persistent allegations of mismanagement risk eroding investor confidence and could raise borrowing costs for the country.

CBN accountability: response so far

As of the latest update, the CBN has not issued a formal response to SERAP’s letter. In a brief statement released to the press, the bank affirmed its commitment to “upholding the highest standards of financial integrity” and promised to “cooperate fully with any legitimate investigative body.” However, the statement stopped short of confirming whether an internal audit is already underway.

Industry analysts note that the CBN’s silence may be strategic. By avoiding a premature public admission, the bank can manage the narrative while internal reviews are conducted. Nonetheless, civil society groups and opposition lawmakers are pressing for a swift, public accounting.

Political implications

The controversy arrives at a politically sensitive time. In the run‑up to the 2027 general elections, opposition parties have pledged to tackle corruption and improve public sector accountability. The SERAP demand for CBN accountability could become a rallying point for candidates seeking to differentiate themselves on anti‑corruption platforms.

Furthermore, the issue underscores the delicate balance between the CBN’s independence and parliamentary oversight. While the central bank enjoys constitutional autonomy, the National Assembly has the power to summon its officials for questioning. Lawmakers from the Senate Committee on Banking and other financial services have signalled intent to call Governor Emefiele before a parliamentary hearing later this year.

Implications for the agricultural sector

Should the allegations be substantiated, the agricultural sector could face a setback. The ABP’s success hinges on trust between the government, banks and farmers. A loss of confidence could deter private investors from participating in future agricultural financing schemes.

Conversely, a transparent resolution—such as a publicly released audit report—could restore faith and even attract new partners. International development agencies, including the World Bank and African Development Bank, have expressed interest in supporting Nigeria’s agricultural transformation, provided that governance standards are met.

Regional perspective: Lessons for other African economies

Nigeria’s experience offers a cautionary tale for neighbouring economies that rely on similar credit‑linked agricultural programmes. Ghana, Kenya and Ethiopia have all launched large‑scale financing initiatives for smallholder farmers. The key lesson is the necessity of robust monitoring mechanisms and real‑time data sharing to prevent fund leakage.

Regional bodies such as the African Union’s Committee on Finance and Economic Development are already discussing the adoption of a continent‑wide transparency framework for agricultural financing. Nigeria’s handling of the SERAP demand could set a precedent for how the framework is operationalised.

What citizens can do

For ordinary Nigerians, staying informed is the first step. Civil society organisations like SERAP often host town‑hall meetings and webinars where citizens can ask questions and voice concerns. Engaging with local representatives, especially those on finance or agriculture committees, can also amplify demands for accountability.

In addition, the public can monitor the CBN’s publications, such as its annual reports and financial statements, which are now available on the bank’s website. Any discrepancies between reported disbursements and actual outcomes in the field should be flagged to watchdog groups.

FAQ

• What is the Anchor Borrowers’ Programme? A government‑backed initiative launched in 2015 to provide credit, inputs and market access to smallholder farmers across Nigeria.
• How much money is SERAP alleging was diverted? The group claims $6.23 million (about ₦2.5 billion) and ₦1.63 trillion were misappropriated.
• What actions can the CBN take to address the allegations? The CBN can commission an independent forensic audit, publicly disclose beneficiary lists, and cooperate with any parliamentary investigations.

Looking ahead

As Nigeria moves toward the 2027 election cycle, the demand for CBN accountability is likely to intensify. Whether the central bank will meet SERAP’s calls for full disclosure could shape public trust in the nation’s financial institutions for years to come. For now, the eyes of civil society, the media and the international community remain fixed on Abuja, awaiting a clear answer.

In the broader African context, the episode underscores the importance of transparent financial governance in driving sustainable development. As more countries adopt large‑scale credit programmes, the lessons from Nigeria will inform policy design, oversight structures and the fight against corruption across the continent.

For continuous updates on this story, follow reputable Nigerian news outlets and the official communications of the Central Bank of Nigeria.

Source: Premium Times Nigeria

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