The Federal Government has accused the Central Bank of Nigeria of misappropriating N2.73tn in interest payments from Ways and Means advances, raising serious concerns over irregularities in managing government funds.
The allegation was disclosed in the consolidated financial statement of the Federal Government for the year ended December 31, 2021, submitted to the National Assembly by the Auditor-General, Shaakaar Chira, with reference number AuGF/AR.2021/01 and dated July 31, 2024.
The Ways and Means facility, a temporary loan mechanism provided by the CBN to the government to finance budget deficits, is at the centre of the controversy.
According to the report, the Federal Government claimed that the CBN retained interest charges amounting to N2.73tn, using the funds “for its sole benefit” rather than returning them to the Consolidated Revenue Fund.
The negative cash balance of the CRF stood at N17.1tn as of December 31, 2021, a figure which also included N4.4tn in Ways and Means advances.
The Constitution of the Federal Republic of Nigeria, 1999 (as amended), and the Financial Regulations of 2009 strictly prohibit unauthorised withdrawals from the CRF or overdrawn government accounts.
