I Didn’t Do It, Emefiele Says, amid damning findings by CBN investigator

Former Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, on trial for a fraudulent contract award, says reports of findings of malfeasance against him are false. Emefiele in a press statement on Christmas Eve, a day after he was granted bail following months in detention, queried the thoroughness of the report, which was leaked to the media just before Christmas.

In his statement, Emefiele said: “After my release on bail from the correctional centre, Kuje, my attention was drawn to publications released by the Punch Newspaper and Premium Times online news platforms.  The sources of the information published by both media houses were credited to a certain report prepared by a Mr. Jim Obazee, who was appointed by the President as a private investigator.  I have gone through the publications, and I say boldly that the contents of the said publications are false, misleading and calculated to disparage my person, injure my character and to serve the selfish interest of the private investigator.

“Because of my present situation, I have been advised by my lawyers not to say anything in respect of the matters which have been submitted to the court for adjudication.  However, I need to addressed some of the issues raised in the publication which are barefaced lies told by the investigator in order to achieve his satanic agenda.”

On the allegations made against him, the former CBN Governor said: “First, it was reported that, contrary to the provision of the CBN Act 2007, there was no presidential approval for the Naira redesign. I wish to state unequivocally that there was indeed a presidential approval, and the said approval was handed over to the same Jim Obazee during the process of his investigation in the presence of senior CBN officials and his own investigative team. Moreover, the former President Muhammadu Buhari GCFR has stated on a number of occasions that he authorised and approved the Naira redesign.  I am therefore at a loss as to why Mr. Jim Obazee will mislead Nigerians that there was no presidential approval.

“The report also claimed that the sum of 6.23 million dollars was withdrawn from the CBN vault based on a false presidential directive bearing the signature of the former president Muhammadu Buhari GCFR, and that of the former secretary to the government of the federation (SGF), Mr. Boss Mustapha.  About two weeks ago, Jim Obazee in company of a certain Deputy Commissioner of Police from Force CID came to Kuje to ask me questions in respect of the said document in the presence of my lawyers.  I stated verbally and in writing that I have no knowledge of such a directive from the former president and the former SGF.  Infact, I told them that that was the first time I would be seeing the documents.  On this, I challenge Jim Obazee to publish the said documents and also the statements that I made to them.

“The final issue that I would like to respond to is the issue of the 593 accounts which were purportedly opened in different parts of the world. I state categorically that I am not involved in the opening of these accounts and I do not have knowledge of their openings.  The fixed deposits in those foreign accounts are definitely outside my knowledge.  However, let me state clearly, that the relevant departments of the CBN have the authority to carry out such activities in line with their lawful mandate within the CBN.  I therefore join well-meaning Nigerians who have spoken on this matter and have demanded a thorough and transparent investigation of all these alleged frauds.  Meanwhile, I have instructed my lawyers to immediately commence legal process to clear my name from the defamatory statements contained in the report and by extension the publications.”

The days ahead will be interesting if indeed Emefiele goes ahead to challenge the report, which has yet to be admitted in official circles. However, it is drawing robust comments from Nigerians, many of whom say the sleaze was embarrassing and an indication of how the country was run under the President Muhammadu Buhari administration.

Commenting in a lengthy post on his X handle, former Deputy Governor of the CBN and former presidential candidate, Dr Kingsley Muoghalu, queried the leaking of the report, adding that it does not do the country’s image good. He said he found it preposterous that the so-called leaked report did not have a signature appended to it nor the President and his administration speaking about it.

“This is a media trial and prejudices the rights of these individuals named or referred to. This is NOT how a report into the Central Bank of Nigeria should be handled. As much as the bank and its leaders ought to be accountable for their official actions, we must consider the continuing damage this kind of sensationalism (which, knowing our country, nothing much is likely to come of it at the end of the day) does to Nigeria’s economy, image, and the institution of the CBN itself. When it comes to law, allegations are simply allegations unless and until proven in a court of law.”

Muoghalu however said that Emefiele would be remembered as the worst CBN Governor in Nigeria’s history for reasons not totally related to the leaked report. Among the reasons he cited were  “The foregoing notwithstanding, my views on Emefiele’s performance as CBN Governor have been a matter of record even when many now opining on the matter of his performance on the job were mute, he said. “He is, without debate, the worst and most damaging Central Bank Governor in Nigeria’s history- incompetent and ill-prepared for the role, and from all available information from his actions, doubtlessly severely challenged with integrity. Four things make this clear; his performance regarding the STABILITY of the Naira exchange rate, as well as inflation; the brazen illegal provisions of Ways & Means lending to @NigeriaGov; Emefiele’s illegal attempt to run for President, in clear contravention of Section 9 of the CBN Act of 2007, which precludes the Governor and Deputy Governors from engaging in activities outside their functions; and he incompetent manner in which the Naira Redesign Policy was handled, and its consequent negative, indeed disastrous impact on Nigeria’s economy.”

Muoghalu called for a thorough audit of other government MDAs such as the NNPCL. “While the law should certainly take its course, it is worth noting that an exclusive focus on the CBN as a ‘fight against corruption’ may come to seem more as vendetta than anything else if other sensitive entities such as the NNPC, Nigeria’s national oil company, are not subjected to a similarly vigorous searchlight. Combating it has to be a holistic affair, not just politically convenient media trials. The current approach to the matter to Emefiele, who undoubtedly deserves his trial, is not quite the optimal path when placed under close scrutiny.”

The Obazee report indicated serious governance issues at the CBN under Emefiele. The report took on the humongous Ways and Means book balance under Emefiele, which it queried, alongside other decisions made by the CBN. In conclusion, the report insinuated that Emefiele ran the CBN like his sole proprietorship, in association with people the report failed to name.

Among its findings from what has been published so far:

1 Ways and Means – “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 N22,719,703,774,306.90 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 N9,063,286,720,318.92 or N9,258,040,720,318.92 (depending on which official you are considering his submission) and an  unreasonable attribution of non-negotiated/unadvised interest element of N6,678,874,321,541.97. This shows the point where the officers of the immediate past administration as well the erstwhile CBN governor and others connived, defrauded and stole from the commonwealth of the country with the aid of civil servants.

“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 N22,719,703,774,306.90 be securitised by the 9th National Assembly on the 19th December 2022; which they also hurriedly did despite the fact that it contravenes Section 38 of the CBN Act, 2007.”

“The probe showed that the CBN Governor on the 19th December 2022 “ signed an advice to the former President Muhammadu Buhari to restructure “Ways and Means” of N23,719,703,774,306.90, despite presenting a different figure to the National Assembly on the same date.

“The fact that the balance of the “Ways and Means” was documented as N26.63 trillion as at June 8, 2023 by the erstwhile CBN Governor shows an unrepentant attitude of the management of the CBN because they continued to carry the “Temporary Advances to the Federal Government” as a running current account, despite the obvious contravention of Section 38 of the CBN Act, 2007, which they swore to uphold.”

Naira redesign – Emefiele did not consult with the management of the CBN or seek any recommendation from the Board of the CBN as required by Section 19 of the CBN Act, 2007. Emefiele did not seek the recommendation of the Board of the CBN nor revert to former President Muhammadu Buhari to inform him nor seek his presidential approval for the new redesigns and the fact that he is now recommending only three denominations.

Section 19(1) of the CBN Act requires that “Naira notes and coins shall be of such forms and designs and bear such devises as shall be approved by the President on the recommendation of the Board of the CBN.” It was unclear the circumstances under which the former presidential aide allegedly gave instructions to Emefiele.

A document said:  “The Naira Redesign was not approved by the Board of CBN and President Muhammadu Buhari in accordance with the law. Buhari only tagged along. Sometimes in September 2022, the erstwhile Governor of the CBN claimed that during his visit to the Presidential Villa, one of the presidential aides told him to go and consider redesigning the Naira. On 6th of October, 2022, Emefiele wrote Buhari seeking approval to redesign and reconfigure N1,000, N500, N200 and N100 notes. Buhari approved the proposal same day. But Buhari approved the currency be printed in Nigeria. On that 6th October 2022, former President Muhammadu Buhari approved Emefiele’s request and directed that he should redesign and reconfigure the four denominations of the Naira notes as prayed, but should print them locally.

“Emefiele took the redesigns, a mere change of colour to De La Rue in UK for a fee of £205,000. Only N1, 000, N500 and N200 were redesigned. As at August 9, 2023, N769 billion of the new notes were in circulation. The printing cost was N61.5 billion, out of which N31.79 billion has been paid. In a separate document, the probe confirmed the investment of billions of dollars in 593 foreign accounts in the United States, China and the United Kingdom without approval from the board or the President.

Illegal Accounts – The former governor of the CBN invested Nigeria’s money without authorisation in 593 foreign accounts in the United States, China and the United Kingdom while he was in charge. “All the accounts where the billions were lodged have all been traced by the investigator, In the UK alone, Emefiele kept £543,482, 213 in fixed deposits without authorization by the CBN board and the Investment Committee of the bank.”

COVID-19 intervention funds – “N1,622,119,412,095.16 was surreptitiously transferred to the following individuals and organizations: Police Trust Fund(N29,750,000,000.00); Companies and individuals (N22,680, 275, 135.45); borrowed for salaries (N720, 682,827,000.00); Donations to public (N40,000,000,000.00); Office of Accountant-General of the Federation (N196, 190,789,994.72); MDAs (N303,514, 294,725.21); and others (N293,986, 243,831.39).

Diversion of N17b by DMB

Investigation indicated that 14 Deposit Money Banks (DMB) were involved in what is termed “criminal diversion of N17, 232,349, 193.55.

On the Nigeria Electricity Supply Industry (NESI), the former CBN Governor was accused of unlawful manipulation of the approval of the President. Also a web management firm is to refund N4.8 billion, being the sum said to have been illegally diverted from NESI Stabilisation Strategy Limited. “The Presidential Approval granted by the then President Goodluck Jonathan was rightly stated by him that NESI should be a Company Limited by Guarantee, but the Committee of Governors misled the Board of the Central Bank of Nigeria by inter-alia: “Relying on a non-existent advice by the Office of the Attorney General and Minister of Justice, to incorporate a Company Limited by Shares for which the Allotted Share Capital exceeded the Authorized Share Capital (See 380% Meeting of the Committee of Governors held in January 2015); and “Allotting unauthorised share capital without lawful approval by the President of the Federal Republic of Nigeria. “There was misrepresentation of Presidential Approval (NESI Stabilisation Strategy Limited). NESI, as approved by former President Goodluck Jonathan, was supposed to be an SPV limited by Guarantee, but Emefiele, relying on a non-existent advice, made it a company limited by shares. “By law, an SPV cannot issue Debentures, as it is precluded from forming a Debenture Trust. Worse still, a virgin entity without any operational track record cannot issue Debentures as it has no trading or earnings history to justify the requirements of the Debenture issue.

“Despite these, the Committee of Governors of the Central Bank of Nigeria on the date of its Meeting of 21st  January 2015,  caused a violation of Section 31 of the CBN Act, 2007 by authorising the issuance of Debentures by NESI Stabilization Strategy Limited to which the initial sum of N64,861,954,000.00 (Sixty Four Billion, Eight Hundred and Sixty One Million, Nine Hundred and Fifty Four Thousand Only), was diverted from Public Funds under the guise of Debenture issuance. This practice has grown to N952,414,745,000 (Nine Hundred and Fifty Two Billion, Four Hundred and Fourteen Million, Seven  Hundred and Forty Five Thousand Naira Only) by the Financial Year end 2021”, the document added. “N1.325billion was stolen pre-incorporation and the money was funnelled to four companies, including a legal firm which got N300 million.”

Part of the report also queried the sake of some banks such as Union, Keystone and Polaris banks, which the investigator claimed were acquired through the backdoor by Emefiele and his associates. The involvement of the CBN in the opaque buyout of Etisalat by a company linked to the late Malam Isa Funtua, a power broker in the Buhari administration. It is unclear what President Bola Tinubu will do with the report.