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.
This ultimatum was issued by the Socio-Economic Rights and Accountability Project (SERAP).
According to SERAP, these allegations are documented in the latest annual report recently published by the Auditor-General of the Federation.
SERAP has also demanded that Cardoso clarify the whereabouts of N7.2 billion budgeted for constructing the CBN Dutse branch in 2010 and N4.8 billion budgeted for renovating the CBN Abeokuta branch in 2009. Additionally, they seek the publication of the names of contractors who received the funds but failed to complete the projects.
Further, the organization has urged the governor to explain the alleged missing outstanding loan of N1.2 billion granted to the Enugu state government in 2015 and the N1.9 billion loan to the Anambra state government between 2015 and 2016. They insist these public funds be fully recovered and remitted to the treasury.
In a letter dated June 29, 2024, and signed by SERAP Deputy Director Kolawole Oluwadare, the organization stated these “grim allegations” by the Auditor-General suggest severe breaches of public trust, the Nigerian Constitution, the CBN Act, and national and international anticorruption obligations.
SERAP noted that these violations reflect a broader failure of CBN accountability and are tied to the institution’s ongoing failure to comply with its Act and uphold transparency and accountability principles.
The letter states, “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] in ‘dirty and bad notes,’ and other large sums of cash awaiting examination in various branches of the CBN.”
“The Auditor-General fears that the ‘dirty and bad notes’ initially planned for destruction may have been diverted and re-injected into the economy.”
“The CBN in August 2010 also reportedly budgeted N7.2 billion [N7,286,500,476.76] for constructing the Dutse branch building. The 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 an incompetent contractor and wants the job completed without further delay.”
“In 2009, the CBN reportedly budgeted N4.8 billion [N4,812,608,028.10] for renovating the CBN Abeokuta branch. The renovation was due to be completed in 2012, but the contractors have failed to complete the project.”
“There has been 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 an 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.”
