Society Gists

The Central Bank of Nigeria has made the consolidated financial statements for the previous seven years accessible for public inspection, marking the first time since 2015 that the top bank has done so.

The CBN published Consolidated Financial Statements for the fiscal years 2016, 2017, 2018, 2019, 2020, 2021, and 2022.

The CBN reported an after-tax profit of N103.8 billion in 2022, up from N75.13 billion the previous year.

In addition, as of the fiscal year that concluded in December 2022, the CBN owed JP Morgan and Goldman Sachs a total $7.5 billion.

Another $6.3 billion in foreign currency forwards that are owned is counted as one of its liabilities.

The apex bank, however, stated it owes Goldman Sachs $500 million and JP Morgan $7 billion in what it classified as securities lending.

The 2022 financial statement read, “The Group entered into a securities lending agreement with Goldman Sachs and J. P. Morgan, and as part of the agreement, the Group pledged its holdings on foreign securities in return for cash. The cash received from Goldman Sachs is N0.23tn ($500m), 2021: N0.22tn ($500m), and JP Morgan N3.23tn ($7bn), 2021: N3.05tn ($7bn) is recognized in other foreign securities.”

Securities lending forms part of the CBN’s total external reserves of about N14.3tn or $29bn using the official exchange rate of N494/$1 as of 2022.

However, the apex bank also owes another N3.15tn ($6.3bn) in foreign currency forward which are forex obligations it needs to make to foreign investors.

The financial statements uploaded on the CBN website is an indication that the apex bank, under the leadership of acting Governor Folashodun Shonubi, is ready to open its book to public scrutiny.

The suspended CBN Governor, Mr Godwin Emefiele, had come under attack for not releasing the financial statements to the public.

The action of Emefiele is in gross violation of the CBN Act.

Since 2005 when it started publishing details of its annual report on its website, the CBN never failed to publish the report until 2016, when it stopped the publication of the crucial documents.

According to the CBN Act 2007, the apex bank is expected to publish its report within two months after the end of each financial year.

“The Bank shall, within two months after the close of each financial year, transmit to the National Assembly and the President a copy of its annual accounts certified by the Auditor.

“A report required to be submitted to the National Assembly and the President shall be published by the Bank in such a manner as the Governor may direct

“The Board shall ensure that accounts submitted pursuant to this section shall as soon as possible be published in the Gazette.

“The Bank shall as soon as may be practicable after the last day of each month makeup end publish a return of its assets and liabilities as at the close of business on that day, or if that day is a holiday, as at the close of business on the last preceding business day,” the Act reads.

Analysts are of the view that the failure of the CBN to publish the report could send wrong signals to investors and others interested in understanding the state of the economy.

President Bola Tinubu had appointed Jim Obazee as a Special Investigator to probe the activities of the CBN and other related entities.

In a letter dated July 28, Tinubu said the appointment of Obazee, relying on the fundamental objective set forth in Section 15(5) of the Nigerian constitution, was in furtherance of his administration’s anti-corruption fight.

The appointment is with immediate effect, and Obazee is to report directly to the President.

According to the letter signed by the President, the full terms of Obazee’s engagement as a special investigator will be communicated to him in due course.

The President had directed Obazee to investigate the CBN and related entities using a suitably experienced, competent, and capable team and to work with relevant security and anti-corruption agencies to deliver on the assignment.