CBN Gets 7 Days Ultimatum To Account For Alleged Missing N100bn Dirty Notes

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has been given a 7-days ultimatum to account for and explain the whereabouts of alleged N100bn ‘dirty and bad notes’ and other large sums of cash awaiting examination which were kept in various branches of the CBN.

The ultimatum was given by the Socio-Economic Rights and Accountability Project (SERAP).

According to SERAP, the allegations are documented in the latest annual report recently published by the Auditor-General of the Federation.

The organisation also asked Cardoso to explain the whereabouts of N7.2bn budgeted for the construction of the CBN Dutse branch in 2010 and the N4.8bn budgeted for the renovation of the CBN Abeokuta branch in 2009, and publish the names of the contractors who collected the money but failed to complete the projects.

SERAP further urged the governor to explain the whereabouts of the alleged missing outstanding loan of N1.2bn granted to the Enugu state government in 2015 and the outstanding loan of N1.9bn granted to the Anambra state government between 2015 and 2016 and to fully recover and remit the public funds to the treasury.

In a letter dated June 29, 2024 and signed by SERAP Deputy Director Kolawole Oluwadare, the organisation said these “grim allegations” by the Auditor-General suggest grave violations of the public trust, the provisions of the Nigerian Constitution, the CBN Act, and national and international anticorruption obligations.

Additionally, SERAP said that these grave violations also reflect a failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and to uphold the principles of transparency and accountability.

It noted that these violations have undermined the ability of the apex bank to effectively discharge its statutory functions and the public trust and confidence in the bank, adding that CBN ought to be committed to transparency and accountability in its operations.

The letter, read in part: “According to the recently published 2020 audited report by the Auditor General of the Federation (AGF), the Central Bank of Nigeria (CBN) has since 2017 been keeping over N100 billion [N100,672,999,000.00] ‘dirty and bad notes’, and other large sum of cash awaiting examination in various branches of the CBN.”

“The Auditor-General fears that the ‘dirty and bad notes’ initially planned to be destroyed may have been ‘be diverted and re-injected into the economy.’”

“The CBN in August 2010 also reportedly budgeted N7.2 billion [N7,286,500,476.76] for the construction of Dutse branch building. The Dutse branch was due to be completed in November 2012 but the contractors have failed to complete the project.”

“The Auditor-General is concerned that the project may have been ‘awarded to incompetent contractor,’ and wants the ‘job completed without further delay.’”

“The CBN in 2009 reportedly budgeted N4.8 billion [N4,812,608,028.10] for the renovation of the CBN Abeokuta branch. The Abeokuta branch was due to be completed in 2012 but the contractors have failed to complete the project.”

“There is no significant renovation work on the site, several years after the proposed completion date. The Auditor-General is concerned that the project may have been ‘awarded to incompetent contractor,’ and wants the ‘job completed without further delay.’”

“The CBN also reportedly failed to account for the missing outstanding loan of N1.2 billion [N1,294,453,887.83] granted to the Enugu state government in 2015 and the outstanding loan of N1.9 billion [N1,994,383,561.64] granted to the Anambra state government between 2015 and 2016.”

“The Auditor-General fears the public funds may have been diverted. He wants the money fully recovered and remitted to the treasury.”

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.”