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SERAP Drags FG to ECOWAS Court Over Alleged Diversion of ₦78.8bn Cash-Transfer Funds

SERAP Drags FG to ECOWAS Court Over Alleged Diversion of ₦78.8bn Cash-Transfer Funds

By Elizabeth Ugbo

The Socio-Economic Rights and Accountability Project (SERAP) has sued the Federal Government at the ECOWAS Community Court of Justice over alleged financial irregularities involving ₦78.8 billion in cash-transfer funds. The lawsuit, filed in October 2026, targets alleged diversion, irregular expenditure and failure to account for funds intended to support vulnerable households across Nigeria. SERAP wants the court to compel the government to investigate the allegations, recover misused funds where proven, and strengthen accountability for social-protection programmes. Punch Newspapers+1

SERAP Challenges Federal Government Over ₦78.8bn Funds

SERAP filed the suit against the Federal Government over funds linked to three government agencies. These include 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 based its action on findings in the Auditor-General of the Federation’s 2024 Annual Report. The report, published on August 7, 2026, highlighted questionable expenditures covering periods between January 2023 and December 2024.

The suit, numbered ECW/CCJ/APP/42/26, seeks a declaration that the government’s alleged failure to account for the funds violates Nigeria’s international human rights obligations.

Furthermore, SERAP wants the court to order a comprehensive account of the money and an independent investigation into the reported irregularities. It also seeks the recovery of any funds found to have been diverted or improperly spent. Punch Newspapers+1

Auditor-General Flags Questionable Cash-Transfer Payments

According to SERAP, the Auditor-General questioned approximately ₦33.751 billion reportedly transferred to more than 3.2 million households across 35 states in 2023.

The audit raised concerns about inadequate documentation to verify payments and reconcile beneficiary records. Consequently, the report identified several other questionable transactions involving the social-protection programme.

These include:

  • ₦36.744 billion: Payments reportedly made without prepayment audits.
  • ₦4.616 billion: Expenditures lacking adequate supporting documents.
  • ₦350.182 million: Funds linked to enrolment.
  • ₦89.511 million: Expenditure on store purchases.
  • ₦17.422 million: Advances for diesel purchases.

SERAP argues that the government must establish how officials spent the money and whether eligible beneficiaries received their intended support. Punch Newspapers+1

SERAP Links Financial Accountability to Human Rights

SERAP maintains that cash-transfer programmes help vulnerable Nigerians meet essential needs, including food, clothing and housing. However, the organisation argues that poor financial oversight could deny eligible households access to these benefits.

It says the government must maintain reliable beneficiary records, verify payments, reconcile disbursements and monitor public spending. In addition, authorities must investigate irregularities and recover public money where investigations establish losses or misuse.

The organisation also argues that Nigeria must fulfil its international human rights obligations by protecting public funds allocated for social protection.

SERAP Says Earlier Demand Received No Adequate Response

Before filing the lawsuit, SERAP wrote to President Bola Tinubu on September 5, 2026. The organisation urged him to investigate the Auditor-General’s findings and ensure full accountability.

It also requested the publication of audit records, beneficiary details, payment documents and verification records. Furthermore, SERAP sought explanations for missing payment records and demanded action against anyone found responsible.

According to the organisation, the deadline for the government to address its concerns expired without an adequate response. Consequently, SERAP approached the ECOWAS Court to seek legal remedies and protect affected households. Punch Newspapers+1

SERAP Seeks Investigation and Recovery of Public Funds

Through the lawsuit, SERAP wants the court to order an independent, prompt and effective investigation into the alleged financial irregularities.

The organisation is also seeking orders compelling the government to:

  • Account fully for the questioned ₦78.8 billion.
  • Recover public funds found to have been improperly spent, diverted or lost.
  • Take appropriate legal or administrative action against responsible officials, following due process.
  • Strengthen financial audits, beneficiary verification and payment reconciliation.
  • Establish effective oversight mechanisms for cash-transfer and social-protection programmes.

Additionally, SERAP wants the court to restrain the government from disbursing these funds without adequate accountability safeguards.

The organisation insists that public money allocated to vulnerable households must serve its intended purpose. It also wants stronger monitoring systems to prevent similar concerns from recurring.

ECOWAS Court Hearing Date Yet to Be Fixed

The lawsuit raises questions about transparency in Nigeria’s social-protection programmes and the management of public funds. However, the allegations remain subject to investigation and judicial determination.

No hearing date has been fixed for the case. The proceedings will determine the legal questions raised by SERAP and any appropriate remedies the court may grant.

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