The money is thought to be part of some $1.7 billion the central government recently released to state agencies.

Some Nigerian governors have also been accused of diverting funds President Muhammadu Buhari had urged them to use to defray salary backlogs owed to employees.

In a report dated March 10 but leaked to the media on Sunday night, Bukola Saraki was accused of conniving with aides to launder the money through a local bank and some firms linked to the influential politician.

The Senate president on Monday denied involvement in the scandal which his spokesman said was meant to disparage him.

Previously linked to in several corruption claims, Saraki is currently standing trial for an allegedly false assets declaration plus the unlawful operation of foreign accounts.

He had pleaded not guilty to the 17-count corruption charge.