The Auditor-General of the Federation, AGoF has accused the Central bank of Nigeria, CBN, of misappropriating close to N3 trillion being interest from the Ways and Means the bank advanced to the Federal Government.
The allegations was contained in a report the AGoF submitted to the National Assembly, who said the infractions took place in the 2021 budgetary year.
The report has further highlighted the controversy that trailed the Muhammadu Buhari administration which has been accused of abusing the Ways and Means.
Ways and Means are advances by the CBN to the federal government, in case of shortage of any shortage of funds to finance the yearly budget. The W&M is backed by the CBN Act.
Under the Act, the apex bank is allowed to advance not more than five percent of the yearly budget to the federal government as loan, which is expected to be paid back within the budgetary year.
The magazine reported that the CBN violated the Act by advancing more loans to the Buhari administration, which at the exit of his government totaled over N30 trillion.
The Nigerian senate, the magazine also recalled opened a probe last year on the controversy that surrounded the W&Means under the administration.
As the criticism against his administration grew, Buhari ensured that the National Assembly securitised the huge advances before his government ended last year.
According to the AGoF, the CBN mismanaged N2.73 trillion in interest from the W&M to the Buhari administration without re-coursing to the National Assembly.
The AGoF office said the action negates the Section 80(2) of the Constitution which states that all funds must be paid into the Consolidated Revenue Fund, and must not be spent until it has been appropriated by the National Assembly of through Supplementary Act by the same.
It said this was not done regarding the N2.73 trillion that accrued from the N4.4 trillion W&M advanced to the federal government in 2021, with the year ending December 31, that year.
The report recommended that the misappropriated fund must be refunded by the apex bank in accordance with the law.
states that no funds shall be withdrawn from the CRF without approval by an appropriation act or supplementary act, while paragraph 710 of the Financial Regulations bars overdrafts and mandates that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 cited the balance in the CRF as at December 31, 2021 as a proof.
It reads, “The CRF negative balance of (N17,105,111,709,523.00) as at 31st December 2021 included actual Ways and Means advance of N4.4 trillion taken by Government and interest charged on it for the sole use of CBN as though the Ways and Means a loan from CBN funds or from any syndicated group of lenders.
“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.
“CBN must therefore refund to the Federal Government of Nigeria the interest of N2.73 trillion it cornered for its sole use as of 31st December 2021.”
Meanwhile, not a few Nigerians have criticized the manner the National Assembly has handled the Ways and Means probe, which they insist, appeared to have been in limbo since last year.
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