The Office of the Auditor-General of the Federation has alleged that the Central Bank of Nigeria (CBN), during Godwin Emefiele’s tenure as governor, reintroduced unfit and dirty banknotes worth N29.77 billion into circulation, violating the CBN’s Clean Note Policy.
The findings are contained in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses in MDAs for the year ended December 31, 2022. The report revealed that several CBN branches issued notes classified as “Counted Audited Dirty”—banknotes formally processed and certified as unfit for circulation.
Between April and December 2022, the Abuja, Lagos, Bauchi, and Jos branches reportedly re-issued these condemned notes. Abuja accounted for the largest share, releasing N28.615 billion between October and December 2022. Lagos issued N970 million in December, Bauchi N30 million in April, and Jos released N50 million and N100 million in May.
The audit stated: “Audit observed that Counted Audited Dirty banknotes amounting to N29,765,000,000.00 were re-circulated into the system by the Central Bank of Nigeria,” noting that only authenticated fit notes should be issued under the Clean Note Policy Version 0.1 (2018).
The report attributed the breaches to weaknesses in the CBN’s internal controls and warned that recirculating dirty notes could damage the bank’s reputation and reduce note durability.
The CBN offered explanations across the affected branches: the Abuja branch cited cash shortages during COVID-19, Bauchi denied the issuance, Jos mentioned military cash demands during insecurity, and Lagos blamed increased Christmas season demand. The Auditor-General rejected all explanations as “not satisfactory,” insisting that the findings remain valid until corrective measures are implemented.
The report recommended that the Governor of the CBN be summoned by the National Assembly’s Public Accounts Committees to justify the breaches, with sanctions under financial regulations advised if explanations fail.
The reintroduction of dirty notes coincided with the controversial naira redesign program announced on October 26, 2022, which led to nationwide cash shortages, legal disputes, and a Supreme Court ruling extending the validity of old notes.
The audit also flagged delays in destroying unfit notes, noting 997 boxes of N10 notes (N99.7 million) unprocessed since November 2021 and 695 boxes of N500 notes (N3.475 billion) from October–November 2022 still awaiting destruction, totaling N3.57 billion. The delays, the report warned, exposed the bank to risks of pilferage, loss of public funds, and inefficiency in currency management.
The revelations add to scrutiny over Emefiele’s leadership. While the audit does not indict him personally, it highlights management failures during his tenure. Emefiele is currently facing multiple corruption and abuse-of-office charges, including a 19-count fraud case in Lagos and a 20-count procurement case in Abuja, alongside other pending allegations.
Bank workers and customers had previously raised concerns over the quality of the reintroduced old notes, warning that dirty and mutilated banknotes could pose health risks and spread diseases.
The Auditor-General’s report calls for urgent action from the CBN and National Assembly to enforce proper internal controls and ensure compliance with currency handling regulations.