The Central Bank of Nigeria (CBN) may face the prospect of withdrawing its recently released audited annual financial reports following investigations by a Special Investigator appointed by President Bola Tinubu. This probe has unearthed discrepancies and irregularities in the CBN’s financial accounts.
In August, the CBN disclosed its financial accounts spanning from 2016 to 2022 while the Special Investigator scrutinized the operations of the apex bank under its suspended governor, Godwin Emefiele. The investigation also extends to other entities such as the Nigerian National Petroleum Corporation Limited (NNPCL), the Financial Reporting Council (FRC), and other government business entities.
President Tinubu appointed Jim Obazee, a former Chief Executive Officer of the Financial Reporting Council of Nigeria, as the Special Investigator to advance the government’s anti-corruption agenda. In his directive, President Tinubu emphasized the need to strengthen transparency and accountability within government entities and curb financial irregularities.
The investigation has revealed several allegations against the CBN, including the potential use of improper accounting guidelines, payment of N401.75 million to IFRS Academy for these guidelines, and the avoidance of International Financial Reporting Standards (IFRS) 9. It is alleged that the CBN’s financial accounts between 2016 and 2022 may not have adhered to proper accounting methodology and standards.
The Special Investigator is collaborating with accountants, auditors, and forensic accountants to conduct a thorough examination of the CBN’s financial records. The team has also invited the auditors responsible for preparing the accounts for questioning.
The investigation’s scope extends beyond the CBN to include the Executive Secretary/Chief Executive Officer of FRC, Shuaibu Ahmed, and other officials associated with the agency. The Department of State Services (DSS) has already questioned some deputy governors of the CBN in the course of the ongoing investigation.
Public opinion on this investigation is divided, with some experts and civil society organizations supporting the initiative as a means to ensure transparency and accountability. Others express concerns about potential negative signals to foreign investors and the need for careful handling to maintain confidence in the economy.
The investigation is expected to shed light on various issues, including the monetary policy of the suspended CBN governor and the controversial redesign of the naira note. If wrongdoing is found, individuals responsible may face prosecution and bans from holding public office.
Overall, the investigation represents a significant step in the government’s efforts to combat corruption and restore confidence in Nigeria’s financial institutions.