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2021 Audit: CBN Accused of Misappropriating N2.73tr in Interest on Ways & Means Advances

Published by Tope Fakinlede on December 30th, 2024.

2021 Audit: CBN Accused of Misappropriating N2.73tr in Interest on Ways & Means Advances

The Office of the Accountant General of the Federation (OAGF) has raised concerns over the Central Bank of Nigeria’s (CBN) handling of interest on the Ways and Means advances, alleging that the bank misappropriated over N4.4 trillion in interest charges.

According to the OAGF, the CBN treated the Ways and Means advances as if they were loans from domestic or international lenders, and has been accused of wrongfully retaining over N2.7 trillion in interest for its exclusive use. The Accountant General argues that these funds should be returned to the Federal Government.

This position is outlined in the OAGF’s response to an audit query related to the Federal Government’s consolidated financial statement for the year ending December 31, 2021. The response, referenced as AuGF/AR.2021/01 and dated July 31, 2024, addresses a broader issue raised in the 2021 audit report by the Auditor General, Shaakaar Chira. The report highlighted that the Consolidated Revenue Fund (CRF) and several government agencies had overdrawn bank balances totaling N17.106 trillion, with no evidence of official approval for these overdrafts.

In its response, the OAGF pointed out that the N17.1 trillion negative balance in the CRF at the close of 2021 included a N4.4 trillion Ways and Means advance from the CBN. The OAGF claims that the interest charged by the CBN on these advances, which it treated as a loan from the bank or a group of lenders, was misappropriated for the CBN’s exclusive benefit. The office insists that since the Ways and Means advances were not sourced from CBN funds or a syndicate of lenders, the CBN must refund the interest, which amounted to N2.73 trillion by the end of 2021, to the Federal Government.