Audit Report Reveals N2.73 Trillion Mismanagement by CBN

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 on Ways and Means Advances provided to the government. According to the OAGF, the CBN treated the advances—worth over N4.4 trillion—as though they were loans from its funds or external lenders, instead of funds drawn from the Consolidated Revenue Fund (CRF). The report recommends the refund of the misappropriated amount to the federal government.

This revelation emerged from the federal government’s 2021 consolidated financial statement submitted to the National Assembly by the Auditor General. The statement disclosed that the CRF and several Ministries, Departments, and Agencies (MDAs) had overdrawn accounts totaling N17.1 trillion without proper approval. The OAGF argued that interest charges on the Ways and Means Advances were unjustified, as these were not syndicated loans but government withdrawals.

Additionally, the report highlighted N6.84 trillion in debt owed by state governments, comprising N4.87 trillion in domestic debt and N1.97 trillion in external debt. It noted that the federal government guaranteed the external debt, posing significant financial risks if states defaulted on repayment. The report also flagged over N116 billion in unapproved overhead expenditures by 235 MDAs and identified gaps in financial transparency across government accounts.

The audit uncovered other irregularities, such as MDAs operating without proper budgets or exceeding their personnel costs by over N9.4 billion. It also reported that 44 agencies spent N92.7 billion on employee benefits without budgetary approval. Furthermore, discrepancies in the classification of intangible assets and unclear reporting of government liabilities raised questions about accountability in the treasury.

The OAGF called for stricter oversight and reforms, urging the CBN and MDAs to address these financial discrepancies. It also recommended clear documentation of liabilities and improved transparency in managing government funds to restore trust and accountability in public finance.