SERAP drags CBN to court over missing N100bn dirty notes

Business a.m.

The Socio-Economic Rights and Accountability Project (SERAP) has demanded that the Central Bank of Nigeria (CBN) provide a detailed account of the “over N100 billion in dirty and bad notes”, along with ‘other large sums of cash awaiting examination,’ which are reportedly being held in various CBN branches. According to Kolawole Oluwadare, deputy director of SERAP, the organisation has publicly denounced the CBN for its lack of transparency in disclosing the location of the reported N100 billion dirty and bad notes stored in various CBN branches since 2017. Oluwadare further revealed that the group has sought legal redress by filing a motion in the Federal High Court in Lagos to compel the CBN to provide detailed information on the whereabouts of these monies, aiming to hold the apex bank accountable for its handling of public funds. He noted that the lawsuit, filed under suit number FHC/L/MSC/441/2024, is praying the Federal High Court in Lagos State to compel the CBN to explain the whereabouts of the over N100 billion in question. In addition to the N100 billion in question, SERAP also requested the Federal High Court to issue an order mandating the CBN to provide information on the status of some significant projects including:

N7.2 billion allocated for the construction of the CBN Dutse branch in 2010.
N4.8 billion earmarked for the renovation of the CBN Abeokuta branch in 2009.

The advocacy group also wants the court to direct 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. SERAP further sought to hold the CBN accountable by demanding the publication of the names of contractors who were awarded these contracts, to promote transparency in the use of public funds. In its statement, SERAP highlighted the significance of transparency and accountability in the management of public funds, noting that disclosure of the alleged misappropriated funds, identification of responsible parties, and prosecution of offenders would not only safeguard public interest but also deter future violations. SERAP further underscored the gravity of these allegations, which are reported by the auditor-general of the federation and, if true, point to severe breaches of public trust and violations of the Nigerian constitution, the CBN Act, and other anti-corruption laws. The group contended that the CBN’s reluctance to adhere to the regulations prescribed in its governing Act, as well as to comply with anti-corruption standards, has resulted in a serious accountability crisis within the apex bank. This failure, SERAP claims, impedes the CBN’s capacity to fulfil its statutory responsibilities and consequently undermines public trust. In filing the lawsuit, SERAP aimed to enforce Nigerians’ right to transparency in the management of public funds and ensure restitution, compensation, and the establishment of effective measures to prevent future incidents of misappropriation of public funds. SERAP’s lawsuit also invoked both the Financial Regulations of 2009 and the Public Procurement Act of 2007 to emphasise the existing legal framework that demands accountability in the use of public funds. The suit, among others filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Adelanke Aremo, read partly, “Nigerians have the right to know the whereabouts of the public funds. Granting the reliefs sought would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition. “Paragraph 708 of the Financial Regulations 2009 provides that, ‘on no account should payment be made for services not yet performed or for 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.”