The Socio-Economic Rights and Accountability Project (SERAP) has demanded that Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), account for over N100 billion in dirty and bad notes, as well as other large sums of cash awaiting examination in various CBN branches.
In a statement on Sunday, SERAP cited the latest annual report from the Auditor-General of the Federation, which documents these allegations. Additionally, SERAP urged Cardoso to explain the whereabouts of N7.2 billion budgeted in 2010 for the construction of the CBN Dutse branch and N4.8 billion allocated in 2009 for renovating the CBN Abeokuta branch.
The group called for the publication of the names of contractors who received funds but failed to complete these projects. SERAP also requested information on the allegedly missing outstanding loans of N1.2 billion granted to the Enugu state government in 2015 and N1.9 billion granted to the Anambra state government between 2015 and 2016, insisting that these public funds be fully recovered and remitted to the treasury.
SERAP urged Cardoso to refer these “grave violations” of the Nigerian Constitution, the CBN Act, and national and international anticorruption obligations to the appropriate anticorruption agencies for investigation, prosecution, and recovery of the public funds. 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 serious breaches of public trust, the Nigerian Constitution, the CBN Act, and anticorruption obligations.”
The letter further emphasized that these violations reflect a broader failure of CBN accountability, undermining the bank’s ability to effectively perform its statutory functions and eroding public trust. SERAP highlighted the necessity for the CBN to adhere to principles of transparency and accountability in its operations.
SERAP requested that these measures be implemented within seven days of receiving or publishing the letter. The organization warned that if no response is received by then, it would pursue legal action to compel compliance in the public interest. SERAP stressed that accounting for the missing funds, publishing the names of those responsible, ensuring their prosecution, and recovering the funds would serve the public interest and curb impunity.
According to the 2020 audited report by the Auditor-General of the Federation, the CBN has been holding over N100 billion in “dirty and bad notes” and other large sums of cash awaiting examination since 2017. The Auditor-General expressed concern that these notes, initially intended for destruction, might have been diverted back into the economy.
The report also mentioned that the CBN budgeted N7.2 billion in August 2010 for constructing the Dutse branch building, which was supposed to be completed by November 2012, but the contractors failed to complete the project.