The Central Bank of Nigeria (CBN) engaged in a rare practice of making multiple transfers totalling $616 million (over N400 billion) to the office of the National Security Adviser (NSA) under Major-General Babagana Monguno (retd.) between August 2016 and November 2018. These transfers have shed light on the opaque dealings of the CBN during the tenure of recently suspended Governor Godwin Emefiele.
According to data obtained from the CBN’s website, the apex bank initiated these transfers to the NSA in August 2016, which was about a year into former President Muhammadu Buhari’s administration. Prior to that, no such transfers were made, according to CBN data going back to 2004. The practice continued monthly until November 2018. Notably, the CBN has not published data on its operations since 2018, leaving uncertainty about whether the payments continued beyond that point.
The largest single transfer of $139 million occurred in November 2016. At the current exchange rate, $616 million is equivalent to N426 billion, accounting for approximately one-third of the amount budgeted for defense in 2022.
The motive behind these substantial outflows from the CBN to the NSA raises concerns, as the transactions lack transparency and are not made in local currency. A former central bank official expressed unease about the lack of clarity regarding the funds’ purpose and usage. The nature of such transactions to the security sector should be open to the public, especially when involving such significant amounts.
The fact that more than half a billion dollars could be transferred from the CBN to the NSA without the president’s approval, given that President Buhari detained Sambo Dasuki, a former NSA under President Goodluck Jonathan, for misappropriation of funds, has raised eyebrows. Dasuki was convicted for stealing $2 billion meant for purchasing arms and ammunition for the Nigerian military.
Critics argue that the CBN’s actions reflect a level of corruption that the Buhari administration sought to eradicate. They point out the stark contrast with Vice President Yemi Osinbajo’s previous claims of large sums of money, both local and foreign currencies, being stolen by individuals within the former President Jonathan-led Peoples Democratic Party administration just before the 2015 general elections.
