The Central Bank of Nigeria (CBN) is the target of a lawsuit brought by the Socio-Economic Rights and Accountability Project (SERAP) because it is allegedly unable to account for or provide an explanation for the whereabouts of more than N100 billion in “dirty and bad notes.”
The case is recorded in Suit Number FHC/L/MSC/441/2024, which was filed at the Federal High Court, Lagos, according to a statement released by SERAP on Sunday.
The Central Bank of Nigeria (CBN) has been holding more than N100 billion in dirty and bad notes in various locations since 2017. SERAP is requesting a court order requiring the CBN to account for these notes.
SERAP’s Case
Continuing, the CBN is being ordered by the court to provide an explanation to SERAP regarding the whereabouts of two outstanding loans: N1.9 billion to the government of Anambra State between 2015 and 2016 and N1.2 billion to the government of Enugu State in 2015.
SERAP is requesting an explanation from the CBN regarding N7.2 billion purportedly set aside for the erection of the CBN Dutse branch in 2010 and N4.8 billion meant for the 2009 restoration of the CBN Abeokuta branch. In addition, they want the identities of the contractors who got these payments made public.
The attorneys for SERAP, Kolawole Oluwadare, and Mrs. Adelanke Aremo, assert that Nigerians have a right to know where public monies are located and that granting the requested relief would improve those rights as well as the rights to reparation, restitution, and a guarantee against repetition.
According to the suit: “Explaining the whereabouts of the missing public funds, publishing the names of those suspected to be responsible, and ensuring they are brought to justice, along with the full recovery of any missing public funds, would serve the public interest and end the impunity of perpetrators.
“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 stipulates that, ‘Once a mobilization 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,” they added.
Continuing with SERAP’s suit: “Section 16(6) of the Public Procurement Act states that, ‘All bidders shall possess the necessary professional and technical qualifications to carry out particular procurements; the financial capacity and adequate personnel to perform the obligations of the procurement contracts.”
More insights shows that according to SERAP, public institutions in Nigeria must do away with all forms of corruption and power abuses in accordance with Section 15(5) of the Constitution. It is evident from the law that the CBN must uphold and respect legal norms.
They contend that the lost and misappropriated monies, as reported by the Auditor-General of the Federation, point to grave transgressions of the Nigerian Constitution, the CBN Act, and international and national anti-corruption laws.
SERAP disclosed: “These grave violations also reflect a failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and anti-corruption standards.”
“Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the CBN to ensure proper management of public affairs and public funds.”
The suit hearing has not yet been scheduled.
It is pertinent to know that one of the public interest advocacy groups in Nigeria, SERAP, uses the legal system to ask courts to become involved in cases where public officials and institutions are accused of violating the law. In due time, the CBN’s legal team is anticipated to respond to SERAP’s lawsuit.
