Auditor-General Indict CBN Over Recycled N29.7bn Dirty Banknotes

Di Office of di Auditor-General of di Federation don indict di Central Bank of Nigeria under former Governor Godwin Emefiele for re-circulating dirty and unfit banknotes worth N29.77bn, violate di CBN Clean Note Policy. According to di newly released Auditor-General Annual Report on Non-Compliance and Internal Control Weaknesses for MDAs for year end December 31, 2022, several CBN branches for Abuja, Lagos, Bauchi and Jos issue out banknotes wey dem already classify as “Counted Audited Dirty”, notes wey suppose don dey condemned and unfit for circulation. Abuja branch alone re-issue N28.615bn between October and December 2022, Lagos push out N970m in December, Bauchi release N30m in April, and Jos issue N50m and N100m for two separate dates in May 2022. Di audit report talk say di re-circulation of dirty notes violate di Clean Note Policy wey state say only authenticated fit notes fit enter circulation, and blame di breach on weak internal control systems. Di CBN branches give different excuses, COVID-19 pressure, military cash demand, Christmas cash rush, but di Auditor-General reject all di explanations as “not satisfactory” and recommend say di CBN Governor must face National Assembly Public Accounts Committees and risk sanctions under Financial Regulations.

Reports observe say di dirty-notes scandal happen same period as di controversial naira redesign program announced October 26, 2022, wey cause nationwide cash scarcity, court battles and Supreme Court intervention. Di audit document add say CBN still get 997 boxes of N10 notes worth N99.7m declared unfit since November 2021 still dey inside vault by October 2023, plus 695 boxes of N500 notes valued at N3.475bn processed in late 2022 but never destroyed, total N3.57bn condemned notes wey pile up because of delay in briquetting and disposal. Auditors warn say di delay fit cause pilferage, loss of public funds and poor currency management, reject CBN claim say destruction don start. Di revelations add to di scrutiny on Emefiele, wey still dey face multiple corruption, procurement, forex-allocation and fraud charges for Lagos and Abuja courts. Even though di audit no indict am personally, e put responsibility on CBN management for violating note-handling protocols. Meanwhile, EFCC and Office of di Attorney-General continue di prosecution as National Assembly dey prepare to summon CBN officials. Earlier reports also show say bank workers and customers complain about di poor quality of old notes CBN reintroduce as new notes begin disappear from circulation.