CBN releases financial statements for seven years

The Central Bank of Nigeria has made the consolidated financial statements for the previous seven years accessible for public inspection, marking the first time since 2015 that the apex bank has done so.

The CBN published Consolidated Financial Statements for the fiscal years of 2016, 2017, 2018, 2019, 2020, 2021, and 2022.

The CBN declared a profit after tax of N103.8bn in 2022, up from N75.13bn reported a year earlier.

In addition, as of the fiscal year that ended in December 2022, the CBN owed JP Morgan and Goldman Sachs a total of $7.5 billion.

Another $6.3 billion in foreign currency futures that are owned is counted as one of its liabilities.

The apex bank, however, claimed that it owes $7 billion in what it categorized as securities loans to JP Morgan and $500 million to Goldman Sachs.

The financial statement for 2022 read, “The Group entered into a securities lending agreement with Goldman Sachs and J. P. Morgan, and as part of the agreement, the Group pledged its holdings on foreign securities in return for cash. The cash received from Goldman Sachs is N0.23tn ($500m), 2021: N0.22tn ($500m), and JP Morgan N3.23tn ($7bn), 2021: N3.05tn ($7bn) is recognised in other foreign securities.”

Securities lending forms part of the CBN’s total external reserves of about N14.3tn or $29bn using the official exchange rate of N494/$1 as of 2022.

However, the apex bank also owes another N3.15tn ($6.3bn) in foreign currency forward which are forex obligations it needs to make to foreign investors.

The financial statements posted on the CBN website show that the apex bank, led by acting Governor Folashodun Shonubi, is prepared to let the public look into its books.

Godwin Emefiele, the suspended CBN Governor, had faced criticism for withholding the financial data from the general public.

Emefiele’s behaviour is a flagrant violation of the CBN Act.

From 2005, when it began posting information about its annual report online, until 2016, when it ceased doing so, the CBN never missed releasing the report.

The CBN Act of 2007 mandates that the apex bank publish its report within two months of the end of each fiscal year.

“The Bank shall, within two months after the close of each financial year, transmit to the National Assembly and the President a copy of its annual accounts certified by the Auditor.

“A report required to be submitted to the National Assembly and the President shall be published by the Bank in such a manner as the Governor may direct

“The Board shall ensure that accounts submitted pursuant to this section shall as soon as possible be published in the Gazette.

“The Bank shall as soon as may be practicable after the last day of each month makeup end publish a return of its assets and liabilities as at the close of business on that day, or if that day is a holiday, as at the close of business on the last preceding business day,” the Act reads.

Experts are of the opinion that the CBN’s failure to publish the report could send wrong signals to investors and others who are interested in the state of the economy.

Jim Obazee was appointed by President Bola Tinubu, as a Special Investigator to scrutinise the activities of the CBN and other related entities.

According to the President, in a letter dated July 28, the appointment of Obazee, was in furtherance of his administration’s fight against anti-corruption, as he relies on the fundamental objective set forth in Section 15(5) of the Nigerian constitution,