An independent report has raised serious concerns about the spending habits of former Central Bank of Nigeria Governor, Godwin Emefiele.
The report indicates that an exorbitant sum of over N1.7 billion was spent on legal fees for multiple lawsuits linked to the naira redesign policy introduced during the tenure of former President Muhammadu Buhari.
According to the report on Friday, the spending of these substantial legal fees for 19 cases related to the policy has been called into question.
Additionally, the report uncovers a concerning allocation of N1.325 billion towards activities termed as “stolen pre-incorporation,” with funds directed to four companies, one of which received a staggering N300 million, identified as a legal firm.
From 2015 to 2021, an investment firm allegedly received a total of N4.89 billion irregularly. The breakdown showed financial transfers of N262 million in 2015, N464 million in 2016, N550 million in 2017, N726 million in 2018, N762 million in 2019, N684 million in 2020, and N1.44 billion in 2021, totaling N4.89 billion.
Moreover, the report accused Emefiele of allegedly disbursing N17.2 billion to 14 deposit money banks involved in the Nigerian Electricity Market Stabilisation Facility.
Lawsuits were filed against Emefiele by eight states including Kaduna, Kogi, Zamfara, Ekiti, Kano, and Ondo, contesting the deadlines for the use of old Naira notes in the country. The legal actions were initiated due to the policy’s impact on citizens’ lives, concerns regarding the practicality of the deadline, and the policy’s constitutionality.
Apart from the states, another litigant, Lagos-based lawyer Tope Alabi, filed a motion at the Federal High Court in Lagos, accusing the ex-CBN governor of disobeying Supreme Court orders on the naira redesign policy. Alabi mentioned how the policy affected his office’s daily operations and the challenges faced by his staff and commercial drivers due to the unavailability of physical cash.
Alabi’s affidavit highlighted a Supreme Court directive from March 10 in Suit No. SC. 162/2023, instructing Emefiele to allow old Naira notes of N200, N500, and N1000 to co-exist as legal tender with new notes until December 2023. Allegedly, Emefiele failed to comply with this directive, withdrawing old notes from circulation on February 10 despite the Supreme Court’s order.
The report also shed light on the issuance of debentures for the NESI SPV, starting with N64.8 billion in 2015 and escalating to N952 billion by 2021. The investigator claimed that these funds were diverted from public funds.