The Central Bank of Nigeria recently unveiled its Consolidated Financial Statements for the past seven years, marking a significant shift as it’s the first time since 2015 that the apex bank has made its financial records accessible to the public.
The released Consolidated Financial Statements encompass the fiscal periods from 2016 to 2022, which has raised concerns among analysts, prompting calls for further investigation due to the perceived suspicious nature of the timeframe.
Analysts have pointed out that the failure of the Central Bank to disclose these reports could lead to misconceptions among investors and those seeking insights into the economic landscape.
To address these concerns, President Bola Tinubu has appointed Jim Obazee as a Special Investigator to delve into the operations of the Central Bank and related entities.
Tinubu’s appointment letter, dated July 28, states that Obazee’s role is rooted in Section 15(5) of the Nigerian constitution, aligned with the administration’s ongoing efforts against corruption.
Obazee’s appointment is immediate, with direct reporting to the President.
Further details regarding his scope and responsibilities will be communicated in due course.
President Tinubu has instructed Obazee to collaborate with a proficient team and work alongside relevant security and anti-corruption agencies to carry out the investigation thoroughly.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, highlighted historical breaches of corporate governance principles and the CBN Act, emphasizing the need for deeper examination of those involved in the apex bank’s governance.
Professor Akpan Ekpo, an Economics and Public Policy expert, speculated that the ongoing investigation may have prompted the CBN to release its financial statements to the public.
He also stressed the importance of conducting the investigation discreetly to prevent potential negative impacts on investor sentiment.
The Consolidated Financial Statements for 2022, based on IFRS Standards, CBN Act, and Financial Reporting Council guidelines, reported a group profit after tax of N103.8bn, a notable increase from the previous year.
Furthermore, the CBN’s liabilities included a combined sum of $7.5bn owed to JP Morgan and Goldman Sachs, along with an additional $6.3bn in foreign currency forwards.
These obligations were part of the CBN’s total external reserves.
The CBN’s financial statement revealed expenses of N155.5bn for the RT200 and Naira4Dollar schemes in 2022, aimed at boosting foreign exchange inflows.
These expenses were categorized as ‘rebate expenses’ linked to the initiatives.
The release of the financial statements on the CBN website signifies a newfound commitment to transparency under the leadership of acting Governor Folashodun Shonubi, in contrast to the suspension of former Governor Godwin Emefiele for failing to disclose financial reports, which was inconsistent with the CBN Act.
