Cardoso’s Transparency Drive Contradicts SERAP’s N3tn Allegation

Last Sunday, the Socio-Economic Rights and Accountability Project (SERAP) issued a dramatic ultimatum to the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, demanding that he explain the alleged “missing or diverted” N3tn reported in the 2022 Auditor-General’s Annual Report or face legal action. While the allegations sound troubling on the surface, a sober, evidence-driven examination reveals that the claims are rooted in misinterpretation, selective reporting, and a lack of understanding of the structure, systems, and reforms currently underway at the Central Bank.

For context, Cardoso, who assumed office in September 2023, inherited a CBN that had been the subject of multiple audit inquiries and operational opacity concerns. Since taking office, he has instituted the most far-reaching transparency reforms the institution has seen in two decades. As such, the attempt to place the burden of alleged financial gaps from the pre-Cardoso era squarely on his shoulders is unfair, inconsistent with institutional accountability norms, and potentially misleading to the public.

This article unpacks the issues and demonstrates why the allegations, as currently framed by SERAP, do not reflect Cardoso’s record, the ongoing reform trajectory of the CBN, or the proper interpretation of the Auditor-General’s findings.

Cardoso Inherited Years Of Structural Backlogs, Not Mismanagement Of His Own Making:

SERAP’s statement cites the Auditor-General’s 2022 report, which covers financial transactions that occurred long before Cardoso assumed office. It is therefore inaccurate to attribute the alleged N3tn discrepancy to the current administration.

Governance experts agree that when new leadership inherits past institutional challenges, the proper question is not “Why did it happen?” but rather “What actions are being taken to correct it?”
On this front, Cardoso’s administration has demonstrated exceptional commitment to restoring order. Under his leadership, the CBN has reinstated internationally recognized standards of monetary policy reporting; reopened collaboration with external auditors who had been sidelined in previous years; committed to full publication of audited financial statements; embarked on a cleanup of questionable intervention funds; strengthened compliance with the CBN Act regarding advances to the Federal Government.

These reforms are not cosmetic, they are structural corrections to the very problems the Auditor-General identified. Rather than accuse Cardoso of wrongdoing, SERAP should recognize that he is the one administering the cure.

The Auditor-General’s Report Identifies Documentation Gaps, Not Proof Of Diversion Or Theft:

Allegations that N3tn was “missing or diverted” suggest intentional wrongdoing. However, the language of the Auditor-General’s report available to the public points primarily to documentation lapses, incomplete records, and reconciliations that were not provided during the audit period.

Financial auditors routinely flag such omissions as “queries,” which are not synonymous with fraud. They serve as invitations for clarification. To describe documentation problems from 2022 as “grave violations of the Constitution” stretches the report far beyond its technical meaning.

The Auditor-General did not declare funds missing, conclude that funds were diverted, or identify any officer in the current administration as responsible. What the report demands is clarification, not criminal accusation.

The Current CBN Has Already Shocked Analysts With Its Improved Transparency:

One of the most compelling defenses of Cardoso comes from an unlikely place: the financial markets.

In November 2025, S&P Global Ratings revised Nigeria’s outlook to positive, citing improved monetary policy stability and restored institutional credibility at the CBN. International credit rating agencies are notoriously conservative. They do not reward institutions embroiled in financial scandal.

Their positive assessment is based on increased transparency in CBN reporting, disciplined monetary policy, reduced quasi-fiscal spending, better FX management, and restored investor confidence.

These are reforms that Cardoso personally championed. If trillions were being diverted or missing under his watch, the global financial community, which scrutinizes every macro-financial signal would not be upgrading Nigeria’s outlook.

SERAP’s Ultimatum Ignores Due Process and the Institutional Chain of Accountability:

Nigeria operates under a constitutional and legal framework that prevents arbitrary apportioning of blame. SERAP’s ultimatum demands that Cardoso “account for missing funds” within 7 days or face legal action, but this request overlooks the following:

• The Auditor-General’s findings must first be forwarded to the Public Accounts Committees of the National Assembly.

-The CBN must be given time to respond formally through established channels.

-Internal reconciliation must be concluded before the CBN can issue statements that withstand scrutiny.

-Liability for financial queries must reflect the tenure during which the transactions occurred.

The attempt to bypass these statutory processes and target the incumbent Governor personally appears more political than procedural.

Cardoso’s Record Shows An Unusual Willingness To Confront Past Problems:

Within months of assuming office, Cardoso initiated several unprecedented steps:

a. Publication of seven years of audited financial statements:

For years, the CBN did not publish audited accounts. Cardoso broke that cycle immediately, releasing backlogged statements and returning the Bank to public accountability.

b. Discontinuation of controversial intervention programs:

The CBN under previous administrations had ballooned into a fiscal actor, disbursing trillions in intervention schemes without adequate oversight. Cardoso ended these interventions, returning the Bank to its core mandate.

c. Cleanup of FX backlogs

He inherited massive FX backlogs that contributed to speculation and opacity. His administration has reconciled and cleared substantial portions of these obligations through transparent verification processes.

d. Strengthening the Bank’s governance architecture

From procurement to foreign operations, new controls have been instituted to prevent exactly the kinds of lapses highlighted in past audit reports.

These actions demonstrate a leader committed to rectifying inherited challenges and not one who hides or diverts public funds.

Nigeria Needs Stability, Not Panic Induced by Misinterpretation:

Central banks operate on trust. Any allegation of missing trillions even when inaccurate can destabilize markets, trigger capital flight, and undermine confidence in the naira.

Institutions like SERAP play an important role in Nigeria’s democracy, but with that role comes responsibility. Their interventions must be accurate, fair, and insulated from sensationalism.

Raising alarm based on an audit query from 2022 without acknowledging the timeline, the change in leadership, the reforms underway, and the difference between irregularities and diversion is not only misleading but potentially harmful to economic stability. The demand for immediate answers within seven days does not align with the complexity of central banking accounting systems.

Cardoso Should Be Commended, Not Condemned:

The attempt to blame Cardoso for alleged discrepancies in a 2022 audit report is misguided and counterproductive. Rather than being a symbol of opacity, Cardoso represents the most transparent and reform-driven leadership the CBN has had in years.

He is confronting legacy financial irregularities, rebuilding the Bank’s reputation, restoring global confidence, enhancing compliance with the CBN Act, and
ensuring accountability where it was previously neglected.

Nigerians deserve clarity, not sensationalism. And every institution, including SERAP, must ensure that public interventions strengthen rather than weaken the nation’s economic stability.

Cardoso’s record speaks for itself: he is cleaning a house he did not dirty, and Nigeria is already seeing the benefits.

ENDS