Central Bank of Nigeria Faces the Potential Withdrawal of Audited Reports Amid Investigation
President tinubu’s Special Investigator Uncovers Discrepancies and Irregularities in CBN’s Financial Accounts
The Central Bank of Nigeria (CBN) may face the prospect of withdrawing its recently released audited annual financial reports for the years 2016 to 2022 due to findings of discrepancies and irregularities. This development comes as part of an ongoing investigation by a Special Investigator appointed by President Bola Tinubu, who has been tasked with probing the activities of the CBN and other related entities.
Background and Appointment of the Special Investigator
On July 28, President Tinubu appointed Jim Obazee, a former Chief Executive Officer of the Financial Reporting Council of Nigeria, as the Special Investigator to scrutinize the operations of the CBN under its suspended governor, Godwin Emefiele. The move was framed as a continuation of the government’s commitment to fighting corruption, in line with the objectives set forth in the Nigerian Constitution.
The investigation extends beyond the CBN to include the Nigerian National Petroleum Corporation Limited (NNPCL), Financial Reporting Council (FRC), and other Government Business Entities. The President’s directive emphasized the need to ensure transparency, block financial leakages, and provide a comprehensive report on public wealth held by corrupt individuals and establishments, whether in the private or public sector.
Investigation Process and Allegations on Central Bank of Nigeria
The CBN Special Investigator is collaborating with a team of accountants, auditors, and forensic accountants to conduct a thorough examination. One of the primary allegations against the CBN is that its financial accounts for the specified years were not prepared using the International Financial Reporting Standards 9 (IFRS 9), which require full disclosure of all financial transactions. Instead, the CBN purportedly utilized guidelines obtained from the FRC in a controversial manner to prepare its financial accounts.
Furthermore, it has been revealed that the CBN paid N401.75 million to IFRS Academy for the guidelines used in preparing these accounts. Allegedly, these guidelines should not have incurred charges, and any accounting guidelines issued by the FRC should have been approved by its board and published on its website.
The investigation team has also invited the auditors responsible for preparing the CBN’s accounts for questioning. Some of the data within these financial accounts is deemed unreliable by the investigators. Pending presidential approval, it is expected that the CBN will be asked to withdraw the financial reports and prepare new ones adhering to proper accounting standards.
Implications and Divergent Views of the Central Bank of Nigeria
Economists and civil society organizations hold varying opinions regarding the investigation. Some view it as necessary to ascertain any infractions or abuse of office within the CBN and related entities. They argue that transparency and accountability are essential for rebuilding confidence in Nigeria’s financial system.
Others express concerns that the public nature of the audit could deter potential investors and negatively impact the country’s financial stability. However, President Tinubu’s administration appears committed to uncovering the truth and ensuring that public funds are not misused.
The investigation also encompasses other government enterprises, including the NNPCL, and reflects a broader effort to restore confidence in Nigeria’s financial institutions and systems.
Conclusion
As the Central Bank of Nigeria faces the possibility of withdrawing its audited financial reports, the investigation led by the Special Investigator continues to uncover alleged irregularities and discrepancies in the apex bank’s financial accounts. The outcome of this investigation could have far-reaching implications for Nigeria’s financial sector and its pursuit of transparency and accountability.
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