Picnews
The Central Bank of Nigeria (CBN) is facing scrutiny after the Auditor-General of the Federation accused it of re-circulating dirty and unfit banknotes worth N29.77 billion, violating its own Clean Note Policy. This policy clearly states that only fit and authenticated notes should be issued into circulation, while unfit notes must not be released by the CBN or commercial banks.
The audit report revealed that several CBN branches, including Abuja, Lagos, Bauchi, and Jos, issued out banknotes already classified as “Counted Audited Dirty” between April and December 2022. The Abuja branch accounted for the bulk of the re-issued notes, with N28.615 billion released between October and December 2022.
The CBN branches gave various explanations for their actions, including citing COVID-19 disruptions, cash shortages, and increased demand during the Christmas season. However, the Auditor-General rejected these explanations, describing them as “not satisfactory”. The Auditor-General emphasized that the explanations did not justify the re-issuance of dirty banknotes, which poses risks to the economy and public health.
The incident has raised concerns about the CBN’s internal control systems and the potential risks of pilferage, loss of public funds, and inefficiency in the bank’s currency management system. The Auditor-General has recommended that the CBN Governor be summoned by the National Assembly’s Public Accounts Committees to justify the breaches, and if necessary, face sanctions under the Financial Regulations.
This is not the first time the CBN has faced criticism over its handling of currency management. The incident highlights the need for stricter oversight and accountability within the banking sector to maintain public trust and ensure the integrity of Nigeria’s financial system.
The CBN has yet to comment on the Auditor-General’s findings, but the incident is likely to raise questions about the bank’s commitment to implementing its policies and protecting the Nigerian economy.
