Special Investigator Jim Obazee’s final report on the Central Bank of Nigeria (CBN) and Related Entities has brought to light ten striking takeaways, unraveling a tapestry of alleged financial irregularities during former CBN governor Godwin Emefiele’s tenure.
From the illegal lodgment of billions of naira in foreign bank accounts to the unapproved naira redesign, each revelation raises serious questions about governance and transparency within the CBN.
As QUEST TIMES delves into the details, these findings underscore a complex narrative of financial impropriety that demands immediate attention and scrutiny.
Here are ten key takeaways from the Special Investigators report into the CBN while Emefiele held sway at the apex bank
Illegal Fund Lodgment:
Former CBN governor Godwin Emefiele is accused of illegally lodging billions of naira in at least 593 bank accounts in the United States, United Kingdom, and China without approval from the apex bank’s board of directors and the CBN Investment Committee.
Obaze and his team found that the ex-CBN governor lodged £543, 482,213 in fixed deposits in UK banks alone without any form of authorisation
Unapproved Naira Redesign:
According to the report, President Buhari did not approve the redesign of the naira. The initiative was suggested by Tunde Sabiu, his nephew, in September 2022. Emefiele informed Buhari on October 6, 2022, about the redesign, but formal approval was not obtained. The redesign was only mentioned to the CBN board on December 15, 2022.
“The former President tagged along but did not approve the redesign as required by law. Buhari merely approved that the currency be printed in Nigeria. The redesign was only mentioned to the board of the CBN on December 15, 2022, after Emefiele had awarded the contract to the Nigerian Security Printing and Minting Plc on October 31, 2022,’’ the documents noted.
Naira Redesign Contract:
Emefiele contracted the redesign of the naira to De La Rue of the UK for £205,000 under the Currency Operations Department after the Nigerian Security Printing and Minting Plc could not fulfill the contract within a short timeframe.
Cost of Printing New Notes:
N61.5 billion was earmarked for printing new notes, with N31.79 billion already paid. As of August 9, 2023, approximately N769 billion of the new notes were in circulation.
Fraudulent Use of Ways and Means:
The report reveals the fraudulent use of N26.627 trillion from the Ways and Means of the CBN and the misuse of the COVID-19 intervention fund.
Excerpts read, “In an instance, they (senior CBN and government officials) padded what the former President Muhammadu Buhari approved with N198,963,162, 187. There are instances where no approvals are received from the former president and yet, N500bn is taken and debited to Ways and Means.
“There are more shocking instances where the erstwhile CBN governor and his four deputy governors connived to steal outright in order to balance the books of the CBN.
“This was by violently taking money from the Consolidated Revenue account and then charging it to Ways and Means. It was a total of N124.860bn. They even created the narration as a presidential subsidy and expanded the ways and Means portfolio to accommodate crime.
“The CBN officers and even the then acting CBN governor could not produce the Presidential Approval of most of the expenses described as ‘Ways and Means.’ When confronted, to provide the breakdown of the supposed N22.7trn that was presented to the 9th National Assembly to illegally securitise as ‘Ways and Means’ financing, they were only able to partially explain a total of N9.063 trn or N9.2trn depending on which official you are considering his submission and an unreasonable attribution of non-negotiated interest element of N6.5tn.
“This shows that this was the point where the officers of the immediate past administration as well as the erstwhile CBN governor and his four deputy governors connived, defrauded, and stole from the commonwealth of our country with the aid of civil servants.’’
It further stated that “The true position of the Ways and Means as documented from the reconciliation between the CBN and the Ministry of Finance at the time is N4,449,149,411,584.54.
“This may have been the main reason the past administration hurriedly sought that the advances of N22.7trn be securitised by the 9th National Assembly on December 19, 2022, which they also hurriedly did despite the fact that it contravenes section 38 of the CBN Act, 2007.”
Unauthorized Debits and Approvals:
The CBN, under Emefiele, approved debiting the Consolidated Revenue Fund Account with N124.860 billion. The Committee of Governors granted anticipatory approval for the payment of N250 billion to the Federal Government. Unauthorized debits and approvals were reported, amounting to a total abuse of the Ways and Means.
Misleading Information on Corporate Entity:
The Committee of Governors misled the CBN board by incorporating a company limited by shares instead of the approved company limited by guarantee. N1.325 billion was allegedly stolen pre-incorporation and funneled to four companies.
Excerpts from the report read, “The Presidential approval granted by then President Goodluck Jonathan was rightly stated by him NESI should be a company limited by guarantee but the Committee of Governors misled the Board of the CBN by relying on non-existent advice by the office of Attorney-General and Minister of Justice to incorporate a company limited by shares for which the allotted share capital exceeded the authorised share capital (See 380th meeting of the Committee of Governors held in January in January 2015) and allotting unauthorised share capital to Mr Godwin Emefiele and Mr Mudashiru Olaitan without lawful approval by the President.
“N1.325bn was stolen pre-incorporation and the money funnelled to four companies, including a legal firm which got N300mn.’’
Investment Company Irregularities:
An investment company unlawfully collected N4.89 billion between 2015 and 2021, with irregular distributions each year. Emefiele allegedly paid N17.2 billion to 14 deposit money banks participating in the Nigerian Electricity Market Stabilisation Facility, with manipulations and fees paid in violation of guidelines.
Manipulation of Naira Exchange Rate:
Emefiele may face allegations of manipulating the naira exchange rate, fraudulent implementation of the e-naira project, and the exemption of three foreign firms from paying income tax.
Illegal Withdrawal/Theft:
The investigation uncovered the illegal withdrawal/theft of $6.23 million from the CBN vault by two individuals using a forged presidential letter.