CBN Fails to Publish Annual Accounts Report.
The Central Bank of Nigeria (CBN) is mandated by law to publish its annual accounts, a requirement that has been consistently ignored.
According to the CBN Act, the apex bank must submit its audited annual accounts to the National Assembly and the president within two months of the fiscal year’s close.
The Central Bank of Nigeria (CBN) has failed to publish its annual accounts. A decision analysts said is a breach of the transparency requirements outlined in the CBN Act.
Under Section 50(1), the CBN Act requires the apex bank to submit its audited annual accounts.
This accounts is to be submitted to the National Assembly and the president within two months of the fiscal year’s close.
The Act reads.
“The Bank shall, within two months after the close of each financial year, transmit to the National Assembly and the President a copy of its annual accounts certified by the Auditor.”
Moreover, Section 50(3) stipulates that these accounts must be published in the government gazette “as soon as possible.”
The Board shall ensure that accounts submitted pursuant to this section shall as soon as possible be published in the Gazette,” the Act reads.
Despite these legal provisions, the CBN continues to delay publishing its annual reports, leaving investors, economists, and the public in the dark.
Between 2015 and 2023, the CBN refused to publish its financial statements.
This includes the bank’s balance sheet and income statement, independently audited by a third-party firm.
However, in August 2023, the CBN released consolidated financial statements covering seven years (2016–2022).
This disclosure came amidst growing public outcry over the bank’s controversial lending practices, particularly its extensive funding of government deficits.
The central bank’s lending to the Nigerian government through short-term overdrafts, known as the Ways and Means facility, had surged exponentially.
The Importance of Timely Publication.
The timely publication of the CBN’s annual accounts is crucial for transparency and accountability.
Economists and finance analysts argue that without this information, confidence in the institution’s ability to manage monetary policy is significantly undermined.
Thus, rendering the financial system opaque.
Consequences of Delayed Publication.
The delayed publication of the CBN’s annual accounts has serious implications for the economy.
It raises concerns among foreign investors, who require transparency about the CBN’s financial health to make informed decisions.
The lack of clarity also discourages foreign investment, as investors perceive an inability to exit when needed.
Experts Opinion on the Delay CBN Annual Accounts Report.
Analysts have expressed concerns about the CBN’s failure to publish its annual accounts.
Aliyu Ilias, an economist, expressed concerns about the CBN not fulfilling its statutory obligation to present audited accounts, as required by law.
“Statutorily, the CBN is supposed to present their audited accounts as stipulated by the law. Anything against that is a breach of the constitution of Nigeria.”
He acknowledged the CBN’s autonomy. This means it cannot be forced into action quickly.
Stressing that this autonomy does not exempt it from its legal duties.
Highlighting the lack of accountability from both the National Assembly and the Presidency.
Neither of which is pressuring the CBN to comply with this requirement.
Mr Ilias argued that this neglect contributes to systemic governance issues in Nigeria
Here ignoring key responsibilities accumulates problems until they become difficult to resolve.
“By the time we keep overlooking what we are supposed to be interested in, a lot of things will pile up, and it will be too late to correct them. That’s exactly what happened during Emefiele,”
Another analyst, Kelvin Emmanuel, highlighted the Central Bank of Nigeria’s (CBN) legal obligation under the CBN Act of 2007 to publish its annual financial statements.
He said the failure to disclose the 2023 financial reports six months after the end of the fiscal year raises concerns, particularly among foreign investors, adding that these financial disclosures are critical because they provide transparency about the CBN’s financial health.
The Way Forward.
The CBN must prioritize transparency and accountability by publishing its annual accounts in a timely manner.
This will help restore confidence in the institution’s ability to manage monetary policy and promote economic stability.
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