2021 audit: CBN can’t account for N2.73trn interest on Ways & Means advances — AGF

The Office of the Accountant General of the Federation (AOGF) has alleged that the Central Bank of Nigeria (CBN) misappropriated more than N4.4 trillion in interest charged on the Ways and Means advances provided to the government. 

According to the AOGF, the CBN treated the advances as though they were loans from local and foreign lenders, and as a result, it should be required to refund over N2.7 trillion to the Federal Government.

This claim is part of the Accountant General’s response to a query regarding the consolidated financial statement of the Federal Government for the year ending December 31, 2021. 

The query was submitted to the National Assembly by the Auditor General, Shaakaar Chira, under reference number AuGF/AR.2021/01, dated July 31, 2024.

In its response to one of 50 audit queries, the Accountant General stated: “The CRF negative balance of N17,105,111,709,523.00 as at December 31, 2021, included the actual Ways and Means advance of N4.4 trillion taken by the government, as well as the interest charged on it, which was solely for the benefit of the CBN. 

“The interest was treated as if the Ways and Means were a loan from the CBN or a syndicated group of lenders.”

The AGF further argued that the interest charged on the Ways and Means by the CBN was misappropriated for the bank’s exclusive use, as the Ways and Means advance was neither a loan from CBN funds nor a facility from a group of lenders.

It therefore called on the CBN to refund the interest of N2.73 trillion to the Federal Government as of December 31, 2021