2021 Audit: CBN faces N2.73 trillion misappropriation scandal
The Office of the Accountant General of the Federation (OAGF) has accused the Central Bank of Nigeria (CBN) of misappropriating N2.73 trillion in interest charges from the Federal Government’s Ways and Means Advances. This finding, detailed in the 2021 consolidated financial audit, has cast a shadow over the apex bank’s operations and raised questions about financial transparency.
The report, submitted to the National Assembly by the Auditor General of the Federation, Shaakaar Chira, reveals that the CBN treated the N4.4 trillion Ways and Means Advances as if they were loans from external or local lenders.
“The interest charged on Ways and Means by the CBN was misappropriated for its sole use, despite the advances not originating from its balance sheet or syndicated sources,” the OAGF stated in its response to the Auditor General’s query.
The OAGF has demanded the immediate refund of N2.73 trillion to the Consolidated Revenue Fund (CRF).
Key Audit Findings
Overdrawn Accounts
The report highlights overdrawn bank balances totalling N17.1 trillion for the CRF and four MDAs without approvals or supporting documentation.
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State Debt Crisis
As of December 31, 2021, Nigeria’s 36 states had accrued a combined debt of N6.84 trillion, comprising N4.87 trillion in domestic debt and N1.97 trillion in external debt guaranteed by the Federal Government.
Budget Overruns
More than 235 MDAs overspent their overhead budgets by N116.35 billion without supplementary appropriations or virement approvals, violating fiscal regulations.
Asset and Liability Mismanagement
Zero Asset Balances
Over 110 MDAs reported nil balances for property, plant, and equipment (PPE), raising questions about asset ownership and record-keeping.
Intangible Assets
Approximately N1.985 trillion was classified as intangible assets without proper categorisation, leaving ambiguity about their amortisation treatment.
Unauthorized Employee Benefits
44 agencies spent N92.68 billion on employee benefits, with the National Pension Commission accounting for 61% of the expenditure, despite lacking approved budgets.
The report calls for immediate action to address fiscal irregularities, urging the Debt Management Office (DMO) to reconcile domestic debt servicing and strengthen oversight mechanisms.
Stakeholders have criticised the government’s lax internal controls, with calls for tighter scrutiny by the National Assembly to curb wasteful spending.
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