The Socio-Economic Rights and Accountability Project (SERAP) has called on Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), to provide a detailed account of over N100 billion in ‘dirty and bad notes’ and other substantial sums awaiting examination in various CBN branches.
This demand follows allegations documented in the latest annual report by the Auditor-General of the Federation. SERAP has urged Mr. Cardoso to explain the whereabouts of N7.2 billion budgeted for the construction of the CBN Dutse branch in 2010 and N4.8 billion for the renovation of the CBN Abeokuta branch in 2009. They have also requested the publication of the names of contractors who received the funds but failed to complete the projects.
Additionally, SERAP has asked for clarification on the allegedly missing outstanding loans of N1.2 billion granted to the Enugu state government in 2015 and N1.9 billion to the Anambra state government between 2015 and 2016. The organization insists that these 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 grave violations of the public trust, the provisions of the Nigerian Constitution, the CBN Act, and national and international anticorruption obligations.”
SERAP highlighted that these violations undermine the CBN’s ability to discharge its statutory functions and erode public trust and confidence in the bank. They emphasized the need for transparency and accountability in the CBN’s operations.
The letter also stated: “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.”
SERAP insists that explaining the whereabouts of the missing public funds, publishing the names of those responsible, and ensuring they are brought to justice will serve the public interest and end the impunity of perpetrators.
The Auditor-General’s 2020 report indicates that since 2017, the CBN has kept over N100 billion in ‘dirty and bad notes’ and other large sums awaiting examination in various branches. There are concerns that these notes, initially planned for destruction, may have been diverted and re-injected into the economy.
The report also mentions that the CBN budgeted N7.2 billion in 2010 for the construction of the Dutse branch building, which was due for completion in 2012 but remains unfinished. Similarly, N4.8 billion was budgeted in 2009 for the renovation of the CBN Abeokuta branch, which also remains incomplete.
Further concerns were raised about the CBN’s failure to account for the outstanding loans granted to the Enugu and Anambra state governments. The Auditor-General fears these public funds may have been diverted and calls for their recovery and remittance to the treasury.
SERAP references several legal provisions, including the Financial Regulations 2009, the Public Procurement Act 2007, and the Nigerian Constitution, emphasizing the need for accountability and transparency in public resource management. They also highlight Nigeria’s commitments under the UN Convention against Corruption to ensure proper management of public funds.
The organization asserts that Nigerians have the right to know the whereabouts of public funds and that taking the recommended measures would advance their right to restitution, compensation, and guarantee of non-repetition.
In conclusion, SERAP demands urgent action from the CBN Governor to address these grave allegations and restore public trust in the institution.
