An audit report from the Office of the Auditor-General of the Federation (OAuGF) has uncovered a staggering $4.5 billion discrepancy in Nigeria’s Foreign Reserves between 2018 and 2019, raising concerns over transparency and accountability within the Central Bank of Nigeria (CBN) during the tenure of former governor Godwin Emefiele, who currently faces corruption charges.
The report reveals that Nigeria’s Foreign Reserves, amounting to US$42,594,842,852.75 in December 2018, plummeted to US$38,092,720,200.72 by the end of 2019. This substantial decline of US$4,502,122,652.03 remains unaccounted for, casting a shadow over the management of the nation’s economic resources.
According to Shaakaa Chira, the Auditor-General of the Federation, the inability to reconcile these missing funds poses significant risks to Nigeria’s economic stability, especially amidst the challenges posed by the COVID-19 pandemic.
Moreover, the audit report highlights additional lapses in financial oversight, including an ‘unsubstantiated’ decline of over $8 billion in Foreign Reserves between 2019 and 2020. Chira underscores the urgent need for improved internal controls at the CBN to mitigate such vulnerabilities and safeguard public funds.
In addition to the discrepancies in Foreign Reserves, the CBN faces scrutiny for its failure to account for recovered funds from the Economic and Financial Crimes Commission (EFCC) between 2016 and 2019, amounting to $40,502,645.06. This contravenes statutory provisions and raises concerns about financial transparency and accountability within government institutions.
In response to these revelations, the CBN has cited ongoing efforts to bolster Foreign Reserves through initiatives like the Presidential Artisanal Gold Mining Initiative (PAGMI) and interventions in the agricultural sector. However, experts warn that the lack of accountability erodes public trust, undermines investor confidence, and hampers economic development.
Lukman Rahim, an Associate Chartered Accountant, emphasizes the far-reaching implications of the missing funds, including decreased foreign investment, rising inflation rates, and diminished government capacity to invest in critical sectors like education and healthcare.
Echoing these concerns, Emmanuel Yoko, Director at the Nigerian College of Accountancy, warns of the repercussions of increased debt collection and servicing, exacerbating economic challenges for ordinary citizens.
As Nigeria grapples with these revelations, calls for enhanced financial transparency and accountability grow louder, underscoring the imperative for robust governance mechanisms to safeguard the nation’s economic well-being and future prosperity.
