The Central Bank of Nigeria (CBN) has come under scrutiny following revelations in the latest Annual Report on Non-Compliance and Internal Control Weaknesses in MDAs by the Office of the Auditor-General of the Federation. The report accuses the apex bank, under the leadership of former Governor Godwin Emefiele, of reintroducing into circulation banknotes that had already been classified as “Counted Audited Dirty” — notes formally processed and certified as unfit for public use.
According to the audit, between April and December 2022, CBN branches in Abuja, Lagos, Bauchi, and Jos reissued condemned notes amounting to ₦29.77 billion. The Abuja branch accounted for the bulk of the reissued notes, with ₦28.615 billion released between October and December 2022. The Lagos branch issued ₦970 million in December, while Bauchi and Jos released smaller amounts of ₦30 million and ₦150 million, respectively.
The report stressed that these actions violated the Clean Note Policy (Version 0.1, 2018), which mandates that only authenticated fit notes may re-enter circulation, while all unfit notes must be withdrawn and destroyed. By re-circulating condemned notes, auditors warned, the CBN weakened public confidence in Nigeria’s currency management system and undermined the integrity of its operations.
The indictment comes amid broader concerns about the apex bank’s handling of monetary policy and financial governance during Emefiele’s tenure. Analysts note that the circulation of dirty notes not only affects the credibility of the naira but also raises questions about compliance, accountability, and internal controls within the CBN.
Public reaction has been swift, with financial experts and civil society groups calling for a thorough investigation and possible sanctions against those responsible. They argue that the recycling of unfit notes contributes to Nigeria’s already strained financial system, where citizens frequently complain about the poor quality of banknotes in circulation.
The Auditor-General’s office has recommended stricter enforcement of the Clean Note Policy, improved monitoring of CBN branches, and stronger oversight mechanisms to prevent future breaches.
