2021 Audit: ‘CBN Can’t Account For ₦2.73tr Interests On Ways & Means Advances’

by Tony Akowe, Abuja

The Office of the Accountant General of the Federation (AOGF) has said the Central Bank of Nigeria (CBN) allegedly misappropriated over N4.4 trillion the interest it charged on the Ways and Means advances it granted to the government.

It said the apex bank treated the Ways and Means advances as if they were a facility from local and foreign lenders and should therefore be asked to refund the over N2.7 trillion to the Federal Government.

The position of the Accountant General is contained in its response to a query from the OAGF on the consolidated financial statement of the Federal Government for the year ended December 31, 2021, submitted to the National Assembly by Auditor General Shaakaar Chira with reference number AuGF/AR.2021/01 and dated July 31, 2024.

The AGF had said in the 2021 audit report that “the Consolidated Revenue Fund (CRF) and four other Ministries, Departments and Agencies (MDAs) had overdrawn bank balances amounting to N17.106 trillion without evidence of approval by relevant authorities to support the overdrawn bank accounts”.

Responding to the issue, which formed part of the 50 audit queries, the AGF said: “The CRF negative balance of N17,105,111,709,523.00, as at December 31, 2021, included actual Ways and Means advance of N4.4 trillion taken by government and interest charged on it for the sole use of the CBN as though the Ways and Means was a loan from CBN funds or from any syndicated group of lenders.

“The interest charged on Ways and Means by the CBN was misappropriated by CBN for its sole use, whereas the actual Ways and Means was not a facility from its funds or balance sheet nor was it a syndicated facility from a group of local and foreign lenders. CBN must therefore refund to the Federal Government of Nigeria the interest of N2.73 trillion it cornered for its sole use as of December 31, 2021.”

Source:- Thenationonlineng

Share on:  Whatsapp  Twitter  Facebook