Six central bank officials and 16 commercial bank staff arrested in
connection with currency theft and recirculating naira notes intended
for destruction.
Nigeria’s anti-corruption body is set to charge senior officials from the central bank and some commercial lenders following their arrest in connection with an alleged 8bn naira ($40m) currency fraud scheme, it said on Monday.
The Economic and Financial Crime Commission (EFCC) said six central bank officials and 16 commercial bank staff accused of currency theft and recirculating naira notes intended for destruction would appear in court
on Tuesday.
“Instead of carrying out the statutory instruction to destroy the currency, they substituted it with newspapers neatly cut to naira sizes and proceeded to recycle the defaced and mutilated currency,” the EFCC said in a statement.
It was unclear from the statement which of Nigeria’s banks were involved. The announcement comes just days after President Muhammadu Buhari was sworn in as leader of Africa’s biggest economy and top oil exporter. A crackdown on corruption was one of his central election campaign pledges.
The Central Bank of Nigeria said the alleged fraud scheme was uncovered last September when a routine audit revealed irregularities in the south-western city of Ibadan. “The CBN has also conducted a nationwide audit of all 37 branches of the bank and found that this was an isolated scheme at Ibadan branch,” it said in a statement on Monday.
“On further investigation ordered by the governor, it was discovered that a systematic scheme, which has been on for several years, was being run in which mutilated higher denomination notes originally meant for destruction were swapped with lower denomination currencies. This practice, known as interleafing, basically labels a box with a higher value than its true content.”
The central bank regularly withdraws old or torn notes from circulation to replace them with new ones. The naira has lost 8.5% of its value since the start of the year after sharp falls in the price of oil, Nigeria’s main export, forced the central bank into a de facto devaluation in February in order to save its dwindling foreign reserves.
Nigeria is also $63bn in debt and is borrowing to pay government workers. During the last week of May, it endured fuel shortages that crippled banks and businesses and grounded flights.
Nigeria’s anti-corruption body is set to charge senior officials from the central bank and some commercial lenders following their arrest in connection with an alleged 8bn naira ($40m) currency fraud scheme, it said on Monday.
The Economic and Financial Crime Commission (EFCC) said six central bank officials and 16 commercial bank staff accused of currency theft and recirculating naira notes intended for destruction would appear in court
on Tuesday.
“Instead of carrying out the statutory instruction to destroy the currency, they substituted it with newspapers neatly cut to naira sizes and proceeded to recycle the defaced and mutilated currency,” the EFCC said in a statement.
It was unclear from the statement which of Nigeria’s banks were involved. The announcement comes just days after President Muhammadu Buhari was sworn in as leader of Africa’s biggest economy and top oil exporter. A crackdown on corruption was one of his central election campaign pledges.
The Central Bank of Nigeria said the alleged fraud scheme was uncovered last September when a routine audit revealed irregularities in the south-western city of Ibadan. “The CBN has also conducted a nationwide audit of all 37 branches of the bank and found that this was an isolated scheme at Ibadan branch,” it said in a statement on Monday.
“On further investigation ordered by the governor, it was discovered that a systematic scheme, which has been on for several years, was being run in which mutilated higher denomination notes originally meant for destruction were swapped with lower denomination currencies. This practice, known as interleafing, basically labels a box with a higher value than its true content.”
The central bank regularly withdraws old or torn notes from circulation to replace them with new ones. The naira has lost 8.5% of its value since the start of the year after sharp falls in the price of oil, Nigeria’s main export, forced the central bank into a de facto devaluation in February in order to save its dwindling foreign reserves.
Nigeria is also $63bn in debt and is borrowing to pay government workers. During the last week of May, it endured fuel shortages that crippled banks and businesses and grounded flights.
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