Fresh findings from the Office of the Auditor-General of the Federation have revealed widespread breaches in the Central Bank of Nigeria’s currency management procedures during the tenure of former governor Godwin Emefiele.
The latest audit confirms that the apex bank reintroduced N29.77 billion worth of banknotes already classified as “Counted Audited Dirty” into public circulation in 2022, contrary to the CBN’s Clean Note Policy.
According to the report, four major CBN branches in Abuja, Lagos, Bauchi and Jos released the unfit notes between April and December 2022. Abuja accounted for the bulk of the irregular issuance, pushing out N28.615 billion of rejected currency within a three-month period. Lagos followed with N970 million in December, while Bauchi and Jos released N30 million and N150 million in separate batches.
The Clean Note Policy, introduced in 2018, stipulates that only verified fit notes may be reissued, while all unfit notes must be destroyed. Auditors warned that the violations weakened the apex bank’s internal controls and shortened the lifespan of Nigeria’s currency.
The News Chronicle gathered that auditors dismissed all explanations given by CBN branches, describing them as “not satisfactory” and insisting that accountability would be required before the violations are cleared.
CBN officials offered varying justifications. Abuja cited severe cash shortages linked to the COVID-era disruptions. Lagos attributed its action to festive season pressures. Jos claimed it responded to urgent military cash requests, while the Bauchi branch denied issuing any unfit notes at all. The audit team, however, rejected every explanation and called for the National Assembly’s Public Accounts Committees to summon senior CBN officials for questioning.
The audit also exposed significant delays in destroying condemned notes. It found 997 boxes of N10 notes valued at N99.7 million, classified as unfit since November 2021, still stored in vaults by October 2023. Another 695 boxes of N500 notes worth N3.475 billion were left unattended more than a year after they were declared unfit.
In total, N3.57 billion worth of condemned notes piled up due to delayed destruction, a situation auditors described as risky and prone to pilferage.
The findings emerged during the controversial naira redesign period, which triggered nationwide shortages and a Supreme Court ruling extending the validity of old notes. Although the report does not indict Emefiele personally, it places responsibility on the leadership of the bank for failing to enforce proper controls.
Meanwhile, the former CBN governor is facing multiple court cases in Lagos and Abuja on charges bordering on fraud, procurement breaches and foreign exchange irregularities. The audit office insists that CBN management must appear before lawmakers to provide corrective action plans.
