Auditor-General Alleges CBN Recycled N29.7bn Dirty Notes in Violation of Clean Note Policy

The Central Bank of Nigeria has come under renewed scrutiny as the Office of the Auditor-General of the Federation accuses the apex bank of reintroducing dirty and unfit banknotes worth N29.77bn into circulation. The allegation, which dates back to the tenure of former CBN Governor Godwin Emefiele, directly contradicts the bank’s Clean Note Policy—an internal guideline that prohibits the recirculation of condemned currency.

According to the newly released 2022 Auditor-General’s Report on Non-Compliance and Internal Control Weaknesses, several CBN branches—including Abuja, Lagos, Bauchi, and Jos—were found to have issued out notes classified as “Counted Audited Dirty,” a category explicitly deemed unfit for public use. The report shows that the Abuja branch alone reissued N28.6bn between October and December 2022, while Lagos, Jos, and Bauchi collectively released over N1bn within the same year.

The audit team noted that this breach exposed Nigerians to poor-quality currency and highlighted severe lapses in the CBN’s internal control systems. Although the implicated branches offered explanations—ranging from COVID-era cash shortages to military-related cash demands and high festive-season currency pressure—the Auditor-General dismissed all justifications as insufficient. It warned that such violations could damage Nigeria’s financial reputation and undermine currency durability.

Beyond the recycled notes, the report also flagged delays in the destruction of condemned currency. It revealed that N3.57bn worth of unfit notes, some dating back to 2021 and 2022, remained undestroyed in CBN vaults as of October 2023. Despite CBN claims that briquetting and destruction had commenced, auditors maintained that the findings stood, citing risks of pilferage and weak currency management practices.

The report adds to ongoing controversies surrounding Emefiele’s administration, which is already under multiple corruption and abuse-of-office investigations. While the audit does not directly indict the former governor, it holds the CBN responsible for violating cash-handling protocols and recommends that the National Assembly summon top officials to explain the breaches. The revelations come as Nigerians continue to recall the hardship of the 2022–2023 cash crunch, when the quality of reissued old notes sparked widespread public frustration.

source: Punch