Emefiele paid Swedish firm N18b to print N100b banknotes — Report

Former Central Bank of Nigeria (CBN) Governor Godwin Emefiele allegedly orchestrated the printing of one billion pieces of N100 banknotes and the production of 5,000 pieces of acrylic blocks in 2014, an anonymous source told PREMIUM TIMES.

PREMIUM TIMES said a fresh investigation by the Economic and Financial Crimes Commission (EFCC) has revealed that the notes and acrylic blocks were procured for Nigeria’s centenary celebration, and the contract was awarded to Swedish company Crane Currency for $121,660,000 (about N18 billion).

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According to an anonymous EFCC source, Emefiele sent a memo to former President Goodluck Jonathan on September 1, 2014, in preparation for the centenary celebration, requesting permission to print the banknotes and acrylic blocks without first going through the CBN board, which is against the CBN Act of 2007.

“Findings showed that contrary to Section 19(1)(b) of the CBN Act, 2007, which stipulates that the currency notes and coins issued by the CBN shall be of such forms and designs and bear such devices as shall be approved by the President on the recommendation of the Board of the Bank, Mr. Emefiele obtained the approval of the former President before presenting it to the Board for ratification,” PREMIUM TIMES reported.

“The contract for the award of the printing of one billion pieces of N100 banknotes and the production of 5,000 pieces of acrylic blocks was awarded in the sum of $121,660,000.00 (N18,911,524,842.62 at the time).

“The contract was allegedly prearranged in favour of a Swedish company, Crane Currency, Sweden (the company supplies the CBN with banknote printing and other currency-related services).”

PREMIUM TIMES reported that an advance payment of $72,996,000 was made to Crane Currency on September 17, 2014, but only $39,848,991.90 was transferred, with the balance of $32,716,050 held back and converted to Naira at N162 per dollar.

It was also alleged that the company received the advance payment through the Currency Operations Department of the CBN, which is a clear breach of an established practice of paying for major currency contracts through a letter of credit.

According to the report, the funds were transferred to the Swedish company’s Nigerian subsidiary and totalled N5.3 billion.

The report also said that investigators alleged that the amount was inflated and shared among unspecified top officials of the CBN and their partners.

“This sum represents the inflated amount the contract yielded for top officials of the CBN and their partners in crime,” one investigator said. “The contract was overinflated to benefit certain individuals within and outside the bank.”

EFCC, however, has reportedly recovered N3,180,236,254.42 from those indicted in the alleged scam.

The source revealed to PREMIUM TIMES that pressure is being mounted on the anti-graft agency’s chairman to release the funds, claiming it was a proceed of legitimate transaction.

EFCC’s spokesperson, Dele Oyewale, confirmed that the agency is investigating the matter but declined to provide further details.

“There is nothing I can tell you at this point because our people are still working on the matter,” Oyewale told PREMIUM TIMES, but Emefiele could not be reached for comments.