CBN Dragged To Court Over Missing N100bn Dirty Notes

The Central Bank of Nigeria (CBN), has been dragged to court by the Socio-Economic Rights and Accountability Project for failing to “account for and explain the whereabouts of over N100 billion in ‘dirty and bad notes’” kept in various branches of the bank.

The suit also included ‘other large sums of cash awaiting examination,’ according to SERAP.

This was revealed in a on Sunday, July 28, 2024, by the organisation’s Deputy Director, Kolawole Oluwadare.

In suit number FHC/L/MSC/441/2024, SERAP urged the Federal High Court sitting in Lagos State to “direct and compel the CBN to explain the whereabouts of the over N100 billion dirty and bad notes kept in various branches of the Central Bank of Nigeria (CBN) since 2017.”

It also asked the court to “direct and compel the CBN to explain the whereabouts of the N7.2 billion meant for the construction of the CBN Dutse branch building in 2010 and the N4.8 billion meant for the renovation of the CBN Abeokuta branch in 2009 and to publish the names of contractors who collected the money,” among others.

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As contained in the statement, the organisation noted that “explaining the whereabouts of the missing public funds, publishing the names of those suspected to be responsible and ensuring that they are brought to justice and the full recovery of any missing public funds would serve the public interest and end the impunity of perpetrators.”

SERAP also argued that “these grim allegations by the Auditor-General of the Federation suggest grave violations of the public trust, the provisions of the Nigerian Constitution, the CBN Act, and national and international anti-corruption obligations.”

“These grave violations also reflect a failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and anti-corruption standards,” adding that these “allegations have seriously undermined the ability of the CBN to effectively discharge its statutory functions and the public trust and confidence in the bank.”

SERAP urged the apex bank “to be committed to transparency and accountability in its operations.”

The suit, among others, read partly, “Nigerians have the right to know the whereabouts of the public funds. Granting the reliefs sought would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.

“Paragraph 708 of the Financial Regulations 2009 provides that, ‘on no account should payment be made for services not yet performed or for goods not yet supplied.’

“Section 35(2) of the Public Procurement Act 2007 provides that, ‘once a mobilisation fee has been paid to any supplier or contractor, no further payment shall be made to the supplier or contractor without an interim performance certificate.”