The Central Bank of Nigeria (CBN) may face calls to withdraw its recently released audited annual financial reports due to discovered discrepancies and irregularities in the financial accounts.
A team investigating the apex bank found these issues, prompting consideration of withdrawing the reports.
In August, the CBN published its financial accounts for the years 2016 to 2022 while it was undergoing investigation by a Special Investigator appointed by President Bola Tinubu. The investigation also covers other government entities like the Nigerian National Petroleum Corporation Limited and the Financial Reporting Council of Nigeria.
The investigation followed Tinubu’s appointment of Jim Obazee, a former CEO of the Financial Reporting Council of Nigeria, as Special Investigator to probe the activities of the CBN under its suspended governor, Godwin Emefiele.
The investigation aims to determine whether there were any infractions or abuses of office during this period.
The investigation team comprises accountants, auditors, and forensic accountants, and it has raised concerns about the CBN’s financial reports. Among the issues are:
- The financial accounts were allegedly not prepared using the International Financial Reporting Standards 9 (IFRS 9), which requires full disclosure of all financial transactions.
- The CBN allegedly used guidelines purportedly obtained from the Financial Reporting Council (FRC) to prepare the financial accounts in a controversial manner.
- The CBN paid N401.75 million to IFRS Academy for the guidelines used in preparing the accounts. This payment should have gone into the Treasury Single Account (TSA) and not to a private company.
- The accounting guidelines used by the CBN were allegedly not supposed to be paid for.
The Special Investigator’s team is recommending that presidential approval be given to the FRC to order the CBN to withdraw the financial reports between 2016 and 2022. Additionally, auditors who prepared the accounts may be questioned as part of the investigation.
The investigation has prompted concerns from some quarters about its potential impact on international and foreign investments. However, others argue that it is necessary to ensure transparency, accountability, and confidence in the financial system.
The investigation is ongoing, and further cases involving Emefiele may come to light in court sessions.