The Federal Government has alleged that the Central Bank of Nigeria (CBN) misappropriated N2.73tn in interest payments from Ways and Means advances.
This accusation raises serious concerns over irregularities in managing government funds.
The allegation was revealed in the consolidated financial statement of the Federal Government for the year ended December 31, 2021, submitted to the National Assembly by the Auditor-General, Shaakaar Chira, with reference number AuGF/AR.2021/01 and dated July 31, 2024.
The Ways and Means facility, a temporary loan mechanism provided by the CBN to the government to finance budget deficits, is at the centre of the controversy.
According to the report, the Federal Government claimed that the CBN retained interest charges amounting to N2.73tn, using the funds “for its sole benefit” rather than returning them to the Consolidated Revenue Fund.
The negative cash balance of the CRF stood at N17.1tn as of December 31, 2021, a figure which also included N4.4tn in Ways and Means advances.
The Constitution of the Federal Republic of Nigeria, 1999 (as amended), and the Financial Regulations of 2009 strictly prohibit unauthorised withdrawals from the CRF or overdrawn government accounts.
Section 80(2) of the Constitution states that no funds shall be withdrawn from the CRF without approval by an appropriation act or supplementary act, while paragraph 710 of the Financial Regulations bars overdrafts and mandates that any interest incurred must be refunded.
The report, however, revealed that the CRF and four other ministries, departments, and agencies had overdrawn accounts totalling N17.1tn, a figure not supported by appropriate approvals or documentation.
The breakdown of the CRF’s negative balance included N9.41tn for reconciled domestic debt service, N4.45tn for Ways and Means withdrawals, and N483.97bn for Paris Club loan refunds.
Other components included deferred state loan deductions and CPV coupon payments.
