Swedish Company Benefited From Inflated N18.9Bn Emefiele’s Banknote Printing Contract, EFCC Investigation Reveals

The Economic and Financial Crimes Commission (EFCC) has uncovered a scandal involving former Central Bank of Nigeria Governor Godwin Emefiele, who allegedly spent N18.9 billion to print N1 billion banknotes and produce acrylic blocks for Nigeria’s centenary celebration in 2014.

The investigation revealed that Emefiele bypassed the CBN board and secured approval from former President Goodluck Jonathan, leading to an inflated contract awarded to a Swedish company, Crane Currency.

The notes and acrylic blocks were procured in commemoration of Nigeria’s centenary celebration in October 2014. Acrylic blocks are used for photopolymer stamping.

According to PREMIUM TIMES, sources within the anti-graft agency disclosed that Mr Emefiele did a memo to former President Goodluck Jonathan on September 1, 2014 preparatory to the centenary celebration seeking approval to print the banknotes and acrylic blocks without passing through the board of the CBN as demanded by the CBN Act, 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 design 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 before the Board for ratification.

The contract for the award of the printing of one billion pieces of N100 banknotes and production of 5000 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).

The contract was awarded to Crane Currency on September 17, 2014. An advance payment of $72,996,000.00 was made to the company through its Nigerian subsidiary, representing 60 per cent of the contract sum of $121,660,000.00.

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 letter of credit.

Although $72,996,00.00 was recorded to have been made to Crane Currency, only $39,848,991.90 was actually transferred to the company. The balance of $32,716,050.00 was held back and converted to Naira at N162 per dollar.

Investigators say this was then moved to the account of the Nigerian subsidiary of the Swedish company and amounted to N5.3 billion. “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.”

The N5.3 billion was initially shared by parties to the inflated contract. Investigators told the newspaper that the EFCC has so far recovered N3,180,236,254.42 from those indicted in the alleged scam. The source further stated that pressures were being mounted on the EFCC Chairman to release the fund to them, claiming it was a a proceed of legitimate transactions.

When contacted, the spokesperson to the EFCC, Dele Oyewale, confirmed that his agency was 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,” Mr Oyewale said.

Mr Emefiele could not be reached for comments. All his known mobile telephone numbers did not connect.