The latest annual audit of the Office of the Auditor-General of the Federation has uncovered fresh violations in the Central Bank of Nigeria’s (CBN) currency-management operations during the tenure of former governor Godwin Emefiel
According to the report, the CBN reissued N29.77 billion worth of “Counted Audited Dirty” banknotes in 2022, a direct breach of its Clean Note Policy, which requires that only authenticated fit notes be released into circulation while all unfit notes are withdrawn and destroyed.
The irregular issuances occurred across branches in Abuja, Lagos, Bauchi, and Jos between April and December 2022. Abuja alone released N28.615 billion of the condemned notes between October and December, while Lagos issued N970 million in December. Bauchi reportedly released N30 million in April, and the Jos branch supplied N50 million and N100 million on May 16 and May 27, respectively.
Auditors warned that the CBN’s actions weakened internal controls, exposed the country to reputational damage, and reduced the lifespan of circulating notes.
The branches offered varying explanations: Abuja cited cash scarcity linked to COVID-era disruptions, Lagos pointed to high seasonal demand during Christmas, Jos attributed its actions to cash requests by the military amid insecurity, and Bauchi denied issuing any unfit notes. Auditors rejected all explanations as “not satisfactory,” insisting that the breaches stand until corrective measures are implemented. They recommended that the Public Accounts Committees of the National Assembly summon the CBN governor and management to justify the violations and apply sanctions where necessary.
The report also flagged delays in the destruction of already-condemned notes. It found that 997 boxes of N10 notes valued at N99.7 million, marked unfit since November 2021, remained in the vault as of October 2023. Another 695 boxes of N500 notes valued at N3.475 billion, processed between October and November 2022, were also awaiting destruction. In total, N3.57 billion worth of condemned notes had accumulated due to delays in briquetting and disposal.
Auditors said the backlog created risks of pilferage, loss of public funds, and inefficiencies in currency-management operations. Although the CBN said briquetting had begun, the auditors upheld their findings.
The issues emerged during the rollout of the naira redesign programme announced on October 26, 2022, which triggered nationwide cash shortages, legal battles, and a Supreme Court order extending the validity of old notes.
While the audit does not directly indict Emefiele, it places responsibility on the CBN leadership of the period for violating note-handling protocols and failing to enforce adequate controls. The former governor is currently facing multiple criminal prosecutions filed by the EFCC and the Office of the Attorney-General of the Federation, including a 19-count fraud charge in Lagos, a 20-count procurement case in Abuja, and several forex-allocation and corruption-related cases before federal courts.
The Auditor-General’s office maintained that CBN officials must appear before the National Assembly to defend the breaches and outline corrective steps.
