A fresh audit report has accused the Central Bank of Nigeria (CBN) of violating its own Clean Note Policy by recycling ₦29.77 billion worth of dirty, unfit banknotes back into circulation in 2022—during the final months of former governor Godwin Emefiele’s tenure.

According to the Auditor-General’s Annual Report, several CBN branches—including Abuja, Lagos, Bauchi, and Jos—released banknotes officially classified as “Counted Audited Dirty”, meaning the money had already been processed and marked as unfit for public use.

Where the Dirty Money Came From

The audit breakdown revealed:

Abuja branch: ₦28.615bn released between October and December 2022

Lagos branch: ₦970m in December 2022

Bauchi branch: ₦30m in April 2022

Jos branch: ₦50m and ₦100m released on two occasions in May 2022

These actions directly violated the CBN’s Clean Note Policy (2018), which prohibits the circulation of damaged or unfit notes.

CBN’s Explanations – And Why Auditors Rejected Them

Each branch attempted to explain the breach:

Abuja cited COVID-19-related operational disruptions and cash shortages.

Bauchi denied releasing unfit notes at all.

Jos claimed the notes were released to meet urgent military cash demands during insecurity spikes.

Lagos blamed massive cash demand during the Christmas season.

The Auditor-General rejected all explanations, declaring them unsatisfactory, and maintained that internal control failures led to the breach.

More Troubling Findings

The report revealed additional irregularities:

997 boxes of ₦10 notes (₦99.7m), declared unfit since 2021, were still not destroyed by October 2023.

695 boxes of ₦500 notes (₦3.475bn), processed in late 2022, also awaited destruction.

In total, ₦3.57bn worth of condemned notes had not been disposed of—creating serious risks of fraud and pilferage.

The CBN claimed briquetting (destruction) activities were ongoing, but auditors again rejected the explanation.

A Scandal Linked to the Naira Redesign Era

The timing of the recycled notes coincided with the controversial 2022 naira redesign policy, which triggered:

A nationwide cash scarcity

Protests and bank disruptions

Legal battles that reached the Supreme Court

A forced extension of the validity of old notes

The audit report adds to the growing scrutiny surrounding Emefiele’s administration at the apex bank. While the document does not accuse him personally, it places responsibility on the CBN management for violating key financial protocols.

Government May Step In

The Auditor-General recommended that:

The CBN Governor be summoned by the National Assembly

Sanctions be applied if the bank fails to justify its actions

The Public Accounts Committees hold CBN officials accountable

Meanwhile, Emefiele is already facing multiple corruption, procurement, and forex-allocation cases in Lagos and Abuja courts.

Public Health Concerns

This is not the first time Nigerians have raised alarm about dirty notes.
Earlier reports showed:

Bank tellers

Cash-handling staff

And customers

all worried that mutilated naira notes reintroduced into circulation could spread infections.