The Socio-Economic Rights and Accountability Project (SERAP) has filed a suit against the Central Bank of Nigeria (CBN) “for failing to account for and explain the whereabouts of over N100 billion in ‘dirty and bad banknotes’ and ‘other large sums of cash awaiting examination’ kept in various CBN branches.”
In suit number FHC/L/MSC/441/2024 filed last week at the Federal High Court in Lagos, SERAP is asking the court to “order and compel the CBN to explain the whereabouts of over N100 billion worth of dirty and bad banknotes stored in various branches of the Central Bank of Nigeria (CBN) since 2017.”
SERAP is also asking the court to “order 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 the contractors who collected the money.”
SERAP is asking the court to “order and compel the CBN to explain the whereabouts of the allegedly missing outstanding loan of N1.2 billion granted to the Enugu State Government in 2015 and the outstanding loan of N1.9 billion granted to the Anambra State Government between 2015 and 2016.”
CBN Headquarters in Abuja
In the lawsuit, SERAP argues that “explaining the whereabouts of the missing public funds, publishing the names of those suspected of being responsible, and ensuring that they are brought to justice and the full recovery of the missing public funds would serve the public interest and end the impunity of the perpetrators.”
SERAP also maintains that “these grim allegations by the Auditor General of the Federation suggest serious breaches of public trust, the provisions of the Nigerian Constitution, the CBN Act and national and international anti-corruption obligations.”
According to SERAP, “These serious violations also reflect a failure of accountability by the CBN more generally and are directly related to the institution’s persistent failure to comply with its anti-corruption law and standards.”
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SERAP maintains that “these allegations have seriously undermined the CBN’s ability to effectively perform its statutory functions and public confidence in the bank. The CBN should commit to transparency and accountability in its operations.”
The suit filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Adelanke Aremo read in part: “Nigerians have a right to know where public funds are. Granting the sought-after compensation would advance Nigerians’ right to restitution, compensation and guarantee of non-repetition.”
“Paragraph 708 of the 2009 Financial Regulations states that ‘in no case shall payment be made for services not yet rendered or 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.’”
“Article 16(6) of the Public Procurement Law provides that ‘all tenderers shall possess the necessary professional and technical qualifications to carry out certain procurements; the financial capacity and adequate personnel to fulfil the obligations of procurement contracts.’”
“SERAP notes that Section 15(5) of the Nigerian Constitution requires public institutions to eliminate all corrupt practices and abuse of power. Section 13 of the Constitution places a clear responsibility on the CBN to comply with, observe and implement the provisions of Chapter 2 of the Constitution.”
“Paragraph 3112(ii) of the Financial Regulations 2009 provides that, ‘Where a public official fails to account for government revenue, he shall be charged a surcharge for the full amount involved and shall be handed over to the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC)’.”
Nigeria Economic and Social Commission for Africa
“Nigeria has made legally binding commitments under the United Nations Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the United Nations Convention against Corruption also impose legal obligations on the CBN to ensure proper management of public affairs and public funds.”
“Nigeria’s Constitution, the Freedom of Information Act and the country’s anti-corruption and human rights obligations are based on the principle that citizens must have access to information relating to the activities of their public institutions.”
“According to the recently released 2020 audited report by the Auditor General of the Federation (AGF), the Central Bank of Nigeria (CBN) has since 2017 held over N100 billion [N100,672,999,000.00] “dirty and bad banknotes” and other large sums of cash awaiting examination at various CBN branches.”
The Auditor General fears that the “dirty and bad banknotes” that were initially planned to be destroyed have been “diverted and reinjected into the economy”.
“In August 2010, the CBN also budgeted N7.2 billion [N7,286,500,476.76] for the construction of the Dutse branch building. The Dutse branch was to be completed by November 2012, but the contractors have not been able to complete the project.”
“The Auditor General is concerned that the project may have been 'awarded to an incompetent contractor' and wants 'the work to be completed without further delay.'”
“In 2009, the CBN reportedly budgeted N4.8 billion [N4,812,608,028.10] for the renovation of the Abeokuta branch of the CBN. The Abeokuta branch was due to be completed in 2012, but the contractors have not been able to complete the project.”
“No major renovation work has been carried out at the site, several years after the proposed completion date. The Auditor General is concerned that the project may have been “awarded to an incompetent contractor” and wants “the work to be completed without further delay.”
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“The CBN also reportedly failed to account for the missing outstanding loan of N1.2 billion. [N1,294,453,887.83] granted to the Enugu State Government in 2015 and the outstanding loan of N1.9 billion [N1,994,383,561.64] granted to the Anambra State Government between 2015 and 2016.”
“The Auditor General is concerned that public funds have been misappropriated. He wants the money to be recovered in full and returned to the Treasury.”
No date has been set for the hearing of the lawsuit.