CBN releases financial statements for 7yrs, declares N103.8bn PAT in 2022, owes US$7.5bn
Central Bank of Nigeria (CBN) has released its Consolidated Financial Statements for the last seven years, making it the first time since 2015, that the regulatory bank will be making its book available for public scrutiny.
The development follows barely a week after President Bola Tinubu appointed a financial investigator, to investigate CBN’s books.
It would be recalled that President Bola Tinubu appointed Mr. Jim Obazee as a Special Investigator to probe the activities of the Central Bank of Nigeria and other related entities.
In a letter dated 28 July, President Tinubu said the appointment of Mr Obazee, relying on the fundamental objective set forth in Section 15(5) of the Nigerian constitution, was in furtherance of his administration’s anti-corruption fight.
The appointment is with immediate effect and Obazee is to report directly to the president.
According to the letter signed by the president, the full terms of Obazee’s engagement as a special investigator will be communicated to him in due course.
Mr Obazee was the chief executive officer of the Financial Reporting Council of Nigeria (FRCN) before he was fired in 2017.
President Tinubu specifically directed Mr Obazee to take immediate steps to ensure the strengthening and probity of key Government Business Entities (GBEs) and block leakages in the CBN and related GBEs.
He also directed the special investigator to provide a comprehensive report on public wealth currently in the hands of corrupt individuals and establishments (whether private or public).
His new assignment from Tinubu will be the second time he will take on the CBN, though in a different circumstance.
Meanwhile, the Consolidated Financial Statements, published on the CBN’s website, are for 2016, 2017, 2018, 2019, 2020, 2021 and 2022 financial years.
The CBN declared a profit after tax of N103.8bn in 2022, up from N75.13bn reported a year earlier.
Also, the CBN owes JP Morgan and Goldman Sachs a combined sum of $7.5bn as of the financial year ended December 2022.
Included as part of its liabilities, is another $6.3bn owned in foreign currency forwards.
The bank, however, clarified that the money owed Goldman Sachs ($500 million) and JP Morgan ($7 billion) represent securities lending.
“The Group entered into a securities lending agreement with Goldman Sachs and J. P. Morgan and as part of the agreement, the Group pledged its holdings on foreign securities in return for cash. The cash received from Goldman Sachs is N0.23tn ($500m), 2021: N0.22tn ($500m), and JP Morgan N3.23tn ($7bn), 2021: N3.05tn ($7bn) is recognised in other foreign securities,” the financial report read in parts.
The report further indicated that Securities lending formed part of the CBN’s total external reserves of about N14.3tn or $29bn using the official exchange rate of N494/$1 as of 2022.
However, the apex bank also owes another N3.15tn ($6.3bn) in foreign currency forward which are foreign exchange obligations it needs to make to foreign investors.
It would be noted that the regulatory bank stopped publishing its statements in 2016, which is against the CBN Act of 2007, that mandates the institution to publish its report within two months after the end of each financial year.
