The Federal Government of Nigeria has raised serious allegations against the Central Bank of Nigeria (CBN), accusing it of misappropriating N2.73 trillion in interest payments related to the Ways and Means advances. This revelation comes from a consolidated financial statement submitted by the Auditor-General, Shaakaar Chira, to the National Assembly, highlighting significant irregularities in the management of government funds.
The Ways and Means facility is a temporary loan mechanism that allows the CBN to provide financial support to the government for budget deficits. However, according to the Auditor-General's report, the CBN retained interest charges amounting to N2.73 trillion for its own use rather than returning these funds to the Consolidated Revenue Fund (CRF), as mandated by law.
The report details that as of December 31, 2021, the CRF had a negative cash balance of N17.1 trillion, which included N4.4 trillion in Ways and Means advances. This situation raises critical concerns regarding compliance with Section 80(2) of the Constitution of Nigeria, which prohibits unauthorized withdrawals from the CRF without legislative approval.
The findings indicate that the CBN treated these funds as if they were loans from its own balance sheet or from a syndicated group of lenders, rather than adhering to proper financial regulations. The Federal Government has demanded an immediate refund of the misappropriated interest charges to restore integrity to public finances.