Nigeria News
CBN Accused Of Misappropriating ₦2.73 Trillion In Interest Payments
The Federal Government has accused the Central Bank of Nigeria (CBN) of misappropriating ₦2.73 trillion in interest payments from Ways and Means advances.
This allegation is contained in the Federal Government’s consolidated financial statement for the year ended December 31, 2021, submitted by the Auditor-General, Shaakaar Chira.
The document, referenced AuGF/AR.2021/01 and dated July 31, 2024, reveals that the apex bank allegedly retained the funds for its own benefit rather than remitting them to the Consolidated Revenue Fund (CRF) as required by law.
What Are Ways and Means Advances?
Ways and Means advances are temporary loans provided by the CBN to the Federal Government to cover budget deficits. However, the arrangement has come under scrutiny due to concerns about compliance with financial regulations.
The Federal Government’s report alleges that interest charges amounting to N2.73tn were retained by the CBN, in violation of constitutional provisions and financial regulations.
The report cites Section 80(2) of the 1999 Constitution, which prohibits withdrawals from the CRF without approval through an appropriation or supplementary act.
Furthermore, paragraph 710 of the Financial Regulations of 2009 bars overdrafts and mandates that any interest incurred on such overdrafts must be refunded to the CRF.
The Auditor-General’s findings indicate that the CRF and four other ministries, departments, and agencies had overdrawn accounts totalling N17.1tn without the requisite approvals or documentation.
The Auditor-General’s report accuses the CBN of acting in its own interest by withholding the N2.73tn in interest payments.
“The interest charged on Ways and Means by CBN was misappropriated by CBN for its sole use whereas the Actual Ways and Means was not a facility from its funds or balance sheet, nor was it a syndicated facility from a group of local and foreign lenders.
“CBN must therefore refund to the Federal Government of Nigeria the interest of N2.73 trillion it cornered for its sole use as of 31st December 2021,” the report reads.