The Central Bank of Nigeria (CBN) has been accused by the federal government of misappropriating N2.73tn in interest payments from Ways and Means advances.

The accusation is contained in the consolidated financial statement of the Federal Government for the year ended December 31, 2021.

It was submitted by the Auditor-General, Shaakaar Chira, with reference number AuGF/AR.2021/01 and dated July 31, 2024.

The Ways and Means facility is a temporary loan mechanism the CBN provides to the federal government to finance budget deficits.

In the report, the federal government alleges that interest charges amounting to N2.73tn were retained by the CBN and that the apex bank used the funds “for its sole benefit” rather than returning them to the Consolidated Revenue Fund.

Nigeria’s Constitution 1999 (as amended) and the Financial Regulations of 2009 strictly prohibit unauthorised withdrawals from the CRF or overdrawn government accounts.

According to Section 80(2) of the Constitution, no funds shall be withdrawn from the CRF without approval by an appropriation act or supplementary act.

Additionally, paragraph 710 of the Financial Regulations bars overdrafts and mandates that any interest incurred must be refunded.

Per the report, however, the CRF and four other ministries, departments, and agencies had overdrawn accounts totalling N17.1tn.

It added that the above figure was not supported by appropriate approvals or documentation.

“The interest charged on Ways and Means by 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.

The Sun