The Nigerian government has raised concerns about irregularities in the management of public finances, accusing the Central Bank of Nigeria (CBN) of embezzling N2.73 trillion in interest payments from Ways and Means advances. This accusation was detailed in a report submitted by the Auditor-General to the National Assembly, citing a violation of financial regulations and the constitution.
The Ways and Means facility, a short-term lending mechanism provided by the CBN to the government to finance budget deficits, is at the center of the dispute. The government alleges that the CBN retained N2.73 trillion in interest charges, using the funds for its own benefit instead of returning them to the Consolidated Revenue Fund.
The report also highlighted a negative cash balance of N17.1 trillion in the CRF as of December 31, 2021, with overdrawn accounts from the CRF and other ministries, departments, and agencies. The government emphasized that the CBN had mishandled the Ways and Means facility by wrongly representing the funds as loans from its balance sheet or syndicated facilities, leading to the retention of interest charges for its sole use.
In response, the Nigerian government demanded the prompt reimbursement of the N2.73 trillion interest assessed on the advances. The Office of the Auditor-General stressed the importance of providing evidence of proper authorizations and supporting documents for the transactions to validate the conclusions.
The report advised the Accountant-General of the Federation to apply penalties for irregular payments from public funds and to justify the N17.1 trillion overdraft to the National Assembly’s Public Accounts Committees. It also highlighted flaws in internal control procedures at the Office of the Accountant-General, describing the situation as a serious risk to public finances.
Overall, the report cautioned against unapproved spending and unnecessary interest payments, emphasizing the need for transparency and accountability in managing public funds. The government’s stance on the alleged embezzlement by the CBN underscores the importance of upholding financial regulations and constitutional provisions in safeguarding public resources.
