Unbelievable CBN Allegedly Stole Trillion In Interest From Ways And Means

Unbelievable CBN Allegedly Stole Trillion In Interest From Ways And Means

The Federal Government has leveled serious allegations against the Central Bank of Nigeria (CBN), accusing it of misappropriating ₦2.73 trillion in interest payments related to Ways and Means…Unbelievable CBN Allegedly Stole Trillion In Interest From Ways And Means

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This claim is outlined in the Federal Government’s consolidated financial statement for the fiscal year ending December 31, 2021, which was submitted by Auditor-General Shaakaar Chira. The document, dated July 31, 2024, reveals that the CBN allegedly retained these funds for its own benefit, violating legal requirements to remit them to the Consolidated Revenue Fund (CRF).

What Are Ways and Means Advances?

Ways and Means advances are short-term loans provided by the CBN to help the Federal Government cover budget deficits. However, these advances have recently come under scrutiny due to concerns regarding financial compliance.

According to the Auditor-General’s findings, the CBN retained ₦2.73 trillion in interest payments instead of remitting them to the CRF, in breach of constitutional provisions and financial regulations. Specifically, Section 80(2) of the 1999 Constitution prohibits withdrawals from the CRF without approval, while paragraph 710 of the Financial Regulations of 2009 mandates that any interest from overdrafts must be refunded to the CRF.

The report also highlighted that the CRF, along with four other ministries and agencies, had overdrawn accounts totaling ₦17.1 trillion without the required approvals or documentation.

The Auditor-General’s report condemns the CBN for acting in its own interest, asserting that the interest payments were misappropriated for the sole use of the bank, despite the fact that the Ways and Means advances were not sourced from its funds or balance sheet.

The report concludes by demanding that the CBN refund the ₦2.73 trillion interest to the Federal Government, as of December 31, 2021.

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