Central Bank of Nigeria Releases Consolidated Financial Statements Amidst Controversy

In an unprecedented move since 2015, the Central Bank of Nigeria (CBN) has finally made public its Consolidated Financial Statements covering the last seven years, spanning from 2016 to 2022. This release comes amidst growing suspicions and calls for scrutiny from analysts and experts.

Analysts are raising eyebrows at the timing of the release, citing suspicions that further investigation may be warranted. The failure to disclose these financial records earlier has drawn concern from investors and stakeholders seeking transparency in understanding the country’s economic state.

President Bola Tinubu has taken a firm stance by appointing Jim Obazee as a Special Investigator to delve into the activities of the CBN and related entities. Citing the constitutional imperative to combat corruption, Tinubu’s directive mandates a thorough investigation into the apex bank’s operations.

Jim Obazee will report directly to President Tinubu and work in collaboration with experienced teams from relevant security and anti-corruption agencies. The investigation aims to shed light on the CBN’s past governance practices and financial management.

Prominent figures in the financial sector, including Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise, have voiced concerns over the CBN’s prolonged lack of transparency. The failure to disclose financial statements for an extended period is viewed as a significant breach of corporate governance principles.

Prof. Akpan Ekpo from the University of Uyo, an expert in Economics and Public Policy, suggests that the ongoing investigation might have prompted the CBN to finally disclose its financial statements. However, he cautions against creating an atmosphere that could drive away potential investors.

The recently unveiled financial statements are prepared based on IFRS Standards, the Central Bank of Nigeria Act, and guidelines issued by the Financial Reporting Council of Nigeria. Notably, the CBN reported a profit after tax of N103.8bn in 2022 as a group, marking an increase from N75.13bn in the previous year.

JP Morgan and Goldman Sachs are listed as creditors to the CBN, with a combined owed amount of $7.5bn as of the end of 2022. The bank also discloses liabilities of $6.3bn in foreign currency forwards.

The CBN’s involvement in securities lending with Goldman Sachs and JP Morgan is unveiled, revealing further intricacies in its financial operations. The bank acknowledges its obligation of $500 million to Goldman Sachs and $7 billion to JP Morgan, categorized as securities lending agreements.

These revelations come at a critical juncture, as the CBN’s financial practices and governance face intense scrutiny. The investigation led by Jim Obazee underlines Nigeria’s commitment to combating corruption and fostering transparency in its financial institutions. The ultimate impact of these developments on the country’s economic landscape remains to be seen.