Over a year after the naira redesign, the report of the special investigator on the Central Bank of Nigeria (CBN) and Related Entities has revealed that over N61.5 billion was expended on the printing of the new notes with more than N29 million still outstanding on the N769.56 billion new notes printed.
The report also indicted former governor of the CBN, Godwin Emefiele, as well as former acting governor, Folashodun Shonubi, and 12 others in the illegal printing and circulation of the redesigned notes.
Those indicted include: Godwin Emefiele, Folashodun Shonubi, Edward Adamu, Dr Kingsley Obiora, Mrs Aishah Ahmad, Mr Adeolal Adetunji, Mr Idris Ahmed, Prof Justifa Nnabuko, Prof Mike Obadan, Prof Ummu Jalingo, Dr Abdu Abubakar, Mr Aliyu Ahmed, Mr Ahmed Umar and Tunde Sabiu.
Also, the former minister of finance, Zainab Ahmed, former Chief of Staff to the president, Prof Ibrahim Gambari, Mr Samuel Ojekere, Mr Benjamin Fakunle and Mr Sabo Mohammed were requested to be charged alongside 13 others.
According to the report, the naira redesign policy embarked on by the CBN under the leadership of Emefiele was illegal as it did not have the approval of the then president of the country, Muhammadu Buhari.
This is as the report also said the former CBN governor and the then minister of finance, alongside others, had padded the Ways and Means collected by the federal government by over N198 billion during the period.
The report of the special investigation on the tenure of the suspended governor of the CBN, whilst stating that the redesigned naira notes are illegal, revealed that as of August 9, 2023, the amount of the illegal naira notes in circulation was N769.562 billion, which cost the government N61.544 billion, of which N31.799 had been paid, leaving a balance of N29.744 billion.
Asides this, the sum of N1.727 billion was also spent on questionable legal fees on 19 cases directly traceable to the naira redesign and reconfiguration agenda.
Urging the federal government to press charges against former CBN governor, the deputy governors as well as the entire board of the apex bank, the report stated that Section 19 (1) of the CBN Act, 2007, provides that the form of the currency notes and coins issued by the CBN shall be approved by the president on the recommendation of the Board of the CBN.
“It was surprising that the currency redesign done in October last year (2022) was neither recommended by the Board of the CBN nor approved by the then President, Mohammadu Buhari,” the report said.
It submitted that the naira redesign policy was a conspiracy against the Nigerian people and specifically the political class by the then CBN governor and Shonubi.
The report further stated that, while the idea was that of Shonubi, Emefiele had designed and approved the currency on October 19, 2022.
“The former president tagged along but did not approve the redesign as required by law. It was only mentioned to the Board of the CBN on 15th December, 2022, after Mr. Emefiele had awarded the contract to NSPM Plc on 31 October, 2022. It was indeed meant to frustrate the political class and make their election agenda very difficult. It turned out to be a huge punishment to Nigerians and the Nigeria economy coincidentally.
“Accordingly, the redesigned Naira is illegal and should be withdrawn from circulation with immediate effect.”
It, thus, recommended that Emefiele, Shonubi and others “should be made to face criminal charges for this aberration that led to the loss of lives of many Nigerians, the closure of businesses and joblessness.”
Asides these, the report had pointed out the fraudulent use of the Ways and Means which it said currently stands at N26.25 trillion. According to the report, the former CBN governor alongside the then minister of finance,
Ahmed, and the chief of staff, Prof Gambari, had padded the ways and means figure.
The investigative report read in part: “Section 38 of the CBN Act, 2007, allows the CBN to grant temporary advances to the federal government in respect of temporary deficiency of budget revenue at an interest. This is what is commonly referred to as “Ways and Means”.
“The said Section also provides that such advances are to be repaid by the end of the federal government financial year in which they are granted; otherwise, the CBN shall be stopped from granting such advances in subsequent years. The advance is NEVER to be repaid by way of Promissory note Securitisation nor issuance of Treasury Bills, etc.
“It was a surprise, Mr. President, that under the last administration, this noble outlet became a huge source of fraudulent drainpipe for the then minister of finance, Mrs. Zainab Ahmed, the erstwhile CBN governor, all the then four deputy CBN governors (under the guise of COG), the permanent secretary of the Ministry of Finance, the Accountant General of the Federation and even the then Chief of Staff. In an instance, they padded what the former President Muhammadu Buhari approved with N198, 963,162,187 (approximating an approval of N801,0346,937,813 to N1 trillion.)
“Surprisingly, the erstwhile CBN Governor and the then Minister of Finance, Dr. Zainab Ahmed, had on the same 19th December 2022 jointly signed an advice to the former President Muhammadu Buhari to restructure “Ways and Means” of N23,719,703,774,306.90 despite presenting a different figure to the National Assembly on the same date.
“The fact that the balance of the “Ways and Means” was documented as N26.627 trillion as at 8th June, 2023 by the erstwhile CBN governor shows an unrepentant attitude of the management of the CBN because they continued to carry the “Temporary Advances to the Federal Government” as a running current account despite the obvious contravention of Section 38 of the CBN Act, 2007 to which they swore to uphold.
The report concluded that the officers named above “are all complicit in the entire criminal act and fraudulent enrichment” and that officials of the immediate past administration that are involved in the malfeasance should be prosecuted,
It also asked that the Court be approached to nullify the approval that the 9th National Assembly gave to securitise the Ways and Means as it contravenes Section 38 of the CBN Act, 2007.
The report also charged them with the stealing of public funds through advances to government, otherwise known as Ways and Means.
“The sum of N17.369 trillion remain unaccounted for, as neither due appropriation nor approvals exist to support the diversion of public funds through this medium. This constitutes an offence under the Penal Code as applicable in the Federal Capital Territory to which actors and conspirators, in this instance, are liable,” it said.
Lawyers Speaks
Some lawyers who spoke to LEADERSHIP Sunday said the policy needs no presidential approval.
They argued that the president will only be informed, and may in turn give his approval or not
A senior advocate of Nigeria (SAN), Mr Abdul Balogun, said the policy is an outlet of the CBN.
“Though, the president can be informed, but the CBN Act 2007 gives the apex bank powers to redesign the policy,” he said.
Human rights lawyer, Ugochukwu Osuagwu, agreed with the position of the senior advocate.
According to him the CBN Act gives power to the bank to redesign the naira.
He said, “The president can be informed but the power to redesign the naira rests with the CBN according to the Act establishing it.”
Although the lawyers asserted that the CBN Act stipulates that presidential approval is not required, Section 20 (3) of the Act states: “Notwithstanding sub-sections (1) and (2) of this section, the Bank shall have power, if directed to do so by the President and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect …”
Consequently, the apex bank board where the President is represented gives approval.
