Central Bank of Nigeria Releases Seven Years of Financial Statements
The Central Bank of Nigeria (CBN) has made public its Consolidated Financial Statements for the past seven years.
The financial reports, spanning from 2016 to 2022, have been published on the CBN’s official website.
Notably, this marks the first time since 2015 that the apex bank has shared its financial statements openly.
The move has spurred speculations about the new leadership’s intention, led by acting Governor Folashodun Shonubi, to increase transparency and invite public scrutiny.
This development follows the recent appointment of Jim Obazee as a Special Investigator by President Bola Tinubu.
Obazee’s mandate is to investigate the activities of the CBN and related entities.
The appointment, based on the provisions outlined in Section 15(5) of the Nigerian constitution, emphasizes the need for accountability and thorough examination of the financial affairs of the apex bank.
Profit After Tax Surges, But Debts Loom
The 2022 financial statement released by the CBN indicates a significant increase in profit after tax, reaching N103.8 billion compared to N75.13 billion reported in the previous year.
However, amid this positive financial performance, the CBN is grappling with substantial debts.
The apex bank has accrued a combined debt of $7.5 billion to JP Morgan and Goldman Sachs.
Specifically, the bank owes Goldman Sachs $500 million and JP Morgan $7 billion, classified as securities lending.
The securities lending arrangement is linked to the CBN’s total external reserves of around N14.3 trillion or $29 billion using the official exchange rate as of 2022.
This financial statement also reveals that the CBN holds liabilities of another $6.3 billion in foreign currency forwards, reflecting its obligations to foreign investors.
Revisiting Transparency and Accountability
Prior to 2015, the CBN traditionally disclosed its financial statements annually since 2005.
However, this practice was discontinued, raising concerns about transparency and adherence to the CBN Act of 2007.
This act stipulates that the bank must publish its annual accounts, certified by an auditor, to the National Assembly and the President within two months after the close of each financial year.
Despite the lapse in this practice, the current disclosure of financial statements indicates a renewed commitment to transparency and accountability.
The release of the financial reports sheds light on the CBN’s financial health, profit trends, and debts.
This transparency aims to ensure adherence to legal mandates and to foster public trust in the apex bank’s financial operations.
In conclusion, the Central Bank of Nigeria’s decision to publish its Consolidated Financial Statements for the last seven years signals a new era of transparency and accountability.
While the bank reports increased profits, it also grapples with significant debts.
This move aligns with the Nigerian constitution’s principles and demonstrates a commitment to public scrutiny and trust.
