CBN Governor Faces 7-Day Deadline to Account for Missing N100 Billion
The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has been given a seven-day ultimatum to explain the whereabouts of an alleged N100 billion in “dirty and bad notes” and other substantial sums of money awaiting examination, reportedly stored in various CBN branches. This demand was issued by the Socio-Economic Rights and Accountability Project (SERAP).
These allegations were highlighted in the most recent annual report by the Auditor-General of the Federation.
SERAP has also requested Cardoso to account for N7.2 billion allocated for the construction of the CBN Dutse branch in 2010 and N4.8 billion allocated for renovating the CBN Abeokuta branch in 2009. Additionally, they demand the publication of the names of contractors who received these funds but did not complete the respective projects.
Moreover, SERAP insists that the governor address the alleged missing 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 emphasize the necessity of recovering and remitting these public funds to the treasury.
In a letter dated June 29, 2024, signed by SERAP Deputy Director Kolawole Oluwadare, the organization highlighted these “grave allegations” from the Auditor-General, which suggest serious breaches of public trust, the Nigerian Constitution, the CBN Act, and national and international anti-corruption obligations.
SERAP pointed out that these violations indicate a broader failure of CBN accountability and reflect ongoing non-compliance with the CBN Act and principles of transparency and accountability.
The letter states, “According to the recently published 2020 audited report by the Auditor-General of the Federation, the Central Bank of Nigeria has since 2017 been holding over N100 billion in ‘dirty and bad notes,’ and other large sums of cash awaiting examination in various CBN branches.”
“The Auditor-General fears that these ‘dirty and bad notes,’ initially intended for destruction, may have been diverted and re-entered into the economy.”
In August 2010, the CBN reportedly allocated N7.2 billion for the construction of the Dutse branch building, with completion expected by November 2012. However, the contractors have failed to finish the project.
“The Auditor-General is concerned that the project may have been awarded to an incompetent contractor and urges its completion without further delay.”
Similarly, in 2009, the CBN reportedly allocated N4.8 billion for renovating the CBN Abeokuta branch, with an expected completion date in 2012. Yet, the project remains incomplete years after the proposed deadline.
“There has been no significant renovation work on the site. The Auditor-General suspects the project was given to an unqualified contractor and insists on its prompt completion.”
Furthermore, the CBN has allegedly failed to account for the missing loan of N1.2 billion granted to the Enugu state government in 2015 and the loan of N1.9 billion granted to the Anambra state government between 2015 and 2016.
“The Auditor-General fears these public funds may have been diverted and demands their full recovery and remittance to the treasury.”
SERAP concludes by stating, “We would appreciate the implementation of the recommended measures within seven days of receiving and/or publishing this letter. If we do not hear from you by then, SERAP will take appropriate legal actions to compel you and the CBN to comply with our request in the public interest.”
