The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over its alleged failure to account for and explain the whereabouts of over N100 billion in “dirty and bad notes.”
In a statement on Sunday, SERAP announced that the case is captured in Suit Number FHC/L/MSC/441/2024 filed at the Federal High Court, Lagos.
SERAP is seeking a court order compelling the CBN to account for the over N100 billion in dirty and bad notes that have been held in various branches of the Central Bank of Nigeria (CBN) since 2017.
SERAP’s Case
SERAP is also requesting the court to compel the CBN to explain the whereabouts of an outstanding loan of N1.2 billion granted to the Enugu State government in 2015, as well as an outstanding loan of N1.9 billion granted to the Anambra State government between 2015 and 2016.
Additionally, SERAP seeks an explanation from the CBN regarding N7.2 billion allegedly allocated for the construction of the CBN Dutse branch building in 2010, and N4.8 billion intended for the renovation of the CBN Abeokuta branch in 2009. They are also demanding the publication of the names of the contractors who received these funds.
According to SERAP’s lawyers, Kolawole Oluwadare and Mrs. Adelanke Aremo, Nigerians have the right to know the whereabouts of public funds, adding that granting the reliefs sought would advance the rights of Nigerians to restitution, compensation, and guarantee of non-repetition.
“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.’”
“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,’” SERAP’s suit reads.
More Insights
SERAP contends that Section 15(5) of the Nigerian Constitution requires public institutions to eliminate all corrupt practices and abuses of power. The law clearly imposes a responsibility on the CBN to adhere to and observe legal standards.
They argue that the missing and diverted funds, as alleged by the Auditor-General of the Federation, suggest serious violations of public trust, the provisions of the Nigerian Constitution, the CBN Act, and national and international anti-corruption obligations.
According to SERAP, “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.”
A date for the hearing of the suit has yet to be fixed.
What You Should Know
SERAP is one of Nigeria’s public interest advocacy groups, relying on litigation to seek court intervention in cases of alleged infractions by government officials and public institutions.
The CBN’s legal team is expected to provide a response to SERAP’s suit in due course.
