Records of funds recovered by the Economic and Financial Crimes Commission (EFCC), between 2016 and 2019 are missing from the Central Bank of Nigeria (CBN), as mandated.
The Office of the Auditor General for the Federation (OAuGF) stated this in its 2020 Audited report on government finances.
The 2020 Audited Report of government finances, submitted to the National Assembly, exposes a significant void in CBN’s records of the said recovered funds.
According to the report, which was dated November 30, 2023, the CBN’s records show no trace of inflows of recovered funds into the federation accounts between 2016 and 2019. The last recorded inflow was documented in December 2015, raising serious questions about the handling of funds earmarked for recovery during subsequent years.
Moreover, the report highlights a concerning trend of unjustified decreases in foreign reserves between 2017 and 2019, amounting to billions of dollars. The Auditor General flagged a decrease in foreign exchange earnings and questioned the CBN’s handling of deposit placements with First Bank of Nigeria (FBN) United Kingdom (UK) Ltd, London, totaling US$134,507,155.20. Allegations suggest the deposits were split to circumvent guidelines, though the CBN denies any wrongdoing, asserting that exposures were within approved limits.
The most damning accusation centers on the alleged diversion of funds received from the International Monetary Fund (IMF) under the Rapid Financing Instrument (RFI). The IMF granted Nigeria emergency financial assistance of US$3.4 billion to address the impacts of the COVID-19 pandemic and declining oil prices.
However, the report alleges that the CBN diverted a portion of these funds, moving billions to various accounts without proper justification or approval.
The report contends that CBN’s actions, including investing funds in short-term maturities and classifying them under its reserve category instead of the Federal Government Reserve, were not transparent and potentially violated IMF conditions.
