Report: Audit Reveals CBN Recycled ₦29.7 billion Dirty Notes Under Emefiele — Violating Its Own Rules
The Office of the Auditor-General of the Federation has uncovered a shocking breach at the Central Bank of Nigeria (CBN), accusing the apex bank under former Governor Godwin Emefiele of recycling dirty, unfit banknotes worth ₦29.77 billion in violation of its official Clean Note Policy.
This revelation has intensified scrutiny on the CBN’s operations during Emefiele’s tenure.
According to the newly released 2022 Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, several CBN branches issued banknotes that had already been classified as “Counted Audited Dirty”—notes certified as unfit for circulation and meant for destruction.
Billions in Dirty Notes Re-Issued Across CBN Branches
The audit detailed how four CBN branches re-circulated condemned notes:
- Abuja branch: ₦28.615bn issued (Oct–Dec 2022)
- Lagos branch: ₦970m issued (Dec 2022)
- Bauchi branch: ₦30m issued (April 2022)
- Jos branch: ₦150m issued (May 2022)
The audit report stated clearly that ₦29.765bn in dirty notes were pushed back into public circulation, calling it a direct breach of the CBN Clean Note Policy 2018, which mandates that only authenticated fit notes may be issued.
Internal Control Failures and Reputational Risks
Auditors warned that recycling unfit notes exposes Nigeria to:
- Loss of public confidence
- Reputational damage
- Reduced currency durability
- Weak financial controls inside the CBN
They concluded the violation was the result of severe internal control failures within the bank.
CBN Branches Offer Explanations — Auditors Reject Them
In its responses:
- Abuja branch blamed the COVID-19 cash shortages
- Lagos branch attributed its action to Christmas season cash demand
- Jos branch claimed the military required emergency cash during insecurity
- Bauchi branch denied the findings entirely
However, the Auditor-General dismissed all explanations as “unsatisfactory.” The report recommends that the National Assembly’s Public Accounts Committees summon the CBN Governor and impose sanctions if no adequate justification is provided.
Coincides With Controversial Naira Redesign
The recirculation of dirty notes reportedly happened during the heat of the 2022 naira redesign crisis—a period marked by:
- Severe nationwide cash shortages
- Legal battles over old and new notes
- A Supreme Court ruling extending the validity of old notes
Bank workers and customers had complained in 2023 about the poor quality of notes resurfacing in circulation—a concern now validated by the audit.
Billions in Unfit Notes Still Undestroyed
The audit also highlighted delays in destroying unfit notes:
- 997 boxes of ₦10 notes (₦99.7m) un-destroyed since 2021
- 695 boxes of ₦500 notes (₦3.475bn) un-destroyed since 2022
- Total un-destroyed, condemned notes: ₦3.57bn
Auditors warned this creates high risks of:
- Pilferage
- Fraud
- Breach of currency management standards
The CBN claimed briquetting (destruction) had begun, but auditors again rejected the explanation.
Another Setback for Emefiele Amid Multiple Trials
Though the audit does not indict Emefiele personally, responsibility falls on the CBN management during his tenure.
Emefiele is currently facing multiple charges, including:
- A 19-count fraud case in Lagos
- A 20-count procurement case in Abuja
- Several forex and corruption-related matters in various courts
The fresh audit revelations add fuel to ongoing investigations into financial mismanagement under the former governor.
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