Massive Corruption Uncovered: EFCC, SERAP Demand Probe into Billions in Stolen Cash Transfer Funds

The Socio-Economic Rights and Accountability Project(SERAP) has urgently called on President Bola Tinubu to initiate a thorough investigation into the alleged diversion, unaccounted for, or irregularly spent public funds totaling over N78.8 billion.

These funds were earmarked for Nigeria’s critical cash transfer and social protection programs, and the allegations stem from the 2024 Annual Report of the Auditor-General of the Federation, published on August 7, 2026.

The report details financial transactions and activities occurring between January and December 2023, with some matters extending to December 31, 2024, highlighting significant discrepancies.

In a letter dated September 5, 2026, signed by its Deputy Director, Kolawole Oluwadare, SERAP implored President Tinubu to direct the Ministry of Humanitarian Affairs and Poverty Reduction, the National Cash Transfer Office (NCTO), and the National Social Safety Nets Coordinating Office (NASSCO) to provide a comprehensive account of these funds.

SERAP specifically demanded the publication of the full audit trail for N33.751 billion, which was reportedly transferred to 3,295,207 households and beneficiaries across 35 states in 2023.

The organization noted that the NCTO failed to provide essential REMITA statements and other records necessary to authenticate these payments and verify the genuineness and eligibility of the beneficiaries, stating that every naira identified as missing must be fully recovered.

Furthermore, SERAP highlighted several other questionable expenditures, including N36.744 billion in payments allegedly made without crucial prepayment audits or internal audit checks, and N4.616 billion in payments lacking adequate supporting documents.

Other irregularities included N350.182 million disbursed to state coordinators for the enrolment of unbanked beneficiaries, N89.511 million spent on store items that were reportedly not delivered, and N17.422 million advanced to staff for diesel purchases.

The Auditor-General’s report also raised concerns over N280.42 million paid as mobilization and advance payments to payment service providers without the mandatory Advance Payment Guarantees.

An additional N393.71 million in unutilized funds, disbursed to nine states for beneficiary enrolment activities, was claimed by the NCTO to have been returned to the Treasury, yet the Auditor-General found no evidence of these funds being credited to the Consolidated Revenue Fund.

Regarding NASSCO, the Auditor-General identified N2.55 billion in questionable or unaccounted-for expenditure.

This included N2.24 billion paid through 158 vouchers without prepayment audit, N44.55 million reportedly spent on laptops that were neither delivered nor entered into the store ledger, and N19.76 million paid for advertisements without evidence of publication.

NASSCO also made payments of N141.01 million to two contractors for software without obtaining the required clearance from the National Information Technology Development Agency.

Further anomalies included N16.93 million paid to 56 officers for National Social Register data reconciliation without supporting documentation, N14.53 million in reimbursements for validation and verification activities without adequate records, N27.56 million allegedly awarded to an unqualified contractor for design and printing, and N44 million in insurance premiums paid to two companies without evidence of the premium payments.

SERAP urged President Tinubu to direct appropriate anti-corruption agencies to thoroughly investigate these allegations, recover all improperly spent, diverted, or lost public funds, and ensure that anyone found responsible is sanctioned and prosecuted.

The organization also called for the publication of a clear schedule detailing recovered amounts, recovery dates, responsible institutions, and the Treasury accounts where recovered funds were paid. To enhance transparency and accountability, SERAP demanded that cash-transfer payments be reconciled against the National Social Register and National Beneficiary Register, and that beneficiaries be independently verified to identify any duplicate, fictitious, deceased, ineligible, or irregular recipients.

Furthermore, they requested the publication of state-by-state beneficiary figures, disbursed amounts, payment dates, failed and reversed transactions, funds returned to the Treasury, and associated administrative costs. SERAP also urged the Ministry to establish an independent mechanism for complaints from listed beneficiaries who did not receive payments and to maintain a comprehensive, regularly updated register of beneficiaries, while safeguarding personal data.

Concurrently, human rights lawyer Femi Falana, SAN, Chairman of the Alliance on Surviving COVID-19 and Beyond (ASCAB), issued a statement on Sunday calling on the Economic and Financial Crimes Commission (EFCC) to investigate and recover the N33.75 billion in cash transfers that the Auditor-General for the Federation, Shaakaa Kanyitor Chira, could not verify as having reached genuine beneficiaries.

Falana emphasized the need for the EFCC to collaborate with the Auditor-General’s office to recover the missing funds and prosecute all individuals involved in their alleged criminal diversion.

Falana highlighted that the alleged failure to account for these funds is particularly concerning given the statutory framework of the National Social Investment Programme Agency (NSIPA), established under the National Social Investment Programme Agency Act 2022.

This Act, enacted during former President Muhammadu Buhari's administration, transformed NSIPA into a statutory body responsible for implementing major social intervention programs such as N-Power, the National Home-Grown School Feeding Programme, National Cash Transfer, National Social Safety-Net, Government Enterprise and Empowerment Programme, and Grant for Vulnerable Groups.

Despite its mandate to design programs, manage beneficiary databases, and strengthen accountability systems, Falana alleged that NSIPA has been undermined by corruption involving public officials.

Recalling past scandals, Falana mentioned the EFCC's investigation into former Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Farouq, over alleged money laundering exceeding N37.1 billion, with an arrest warrant issued in April 2026. He also cited the suspension of Farouq’s successor, Betta Edu, in December 2023, following a leaked memo directing the transfer of N585 million in public funds to a private account, as well as the suspension and questioning of Halima Shehu, then Chief Executive Officer of NSIPA, over suspicious fund movements.

Falana urged the EFCC to conclude these investigations swiftly. While acknowledging the Federal Government’s introduction of stricter tracking measures, including linking beneficiary profiles with Bank Verification Numbers (BVN) and National Identification Numbers (NIN) to eliminate ghost beneficiaries, Falana noted that the latest Auditor-General's report raises fresh concerns.

He also criticized President Bola Tinubu's proposed $3.05 billion package of development programs, unveiled in July 2026 with World Bank support, intended for poverty reduction. Falana advocated for the establishment of an independent mechanism, involving credible civil society organizations, to oversee the disbursement of these funds to ensure they reach poor and vulnerable Nigerians directly.

SERAP concluded by stating that these findings raise serious questions about the integrity and effectiveness of Nigeria’s social protection system, particularly as the funds are meant to assist the most vulnerable.

The organization warned that failure to respond to its demands within seven days could lead to legal action, including proceedings before the ECOWAS Court and the World Bank Accountability Mechanism’s Inspection Panel, grounding its demands in Nigeria’s constitutional obligations and international anti-corruption commitments.