By Joke Kujenya
THE OFFICE of the Accountant General of the Federation (OAGF) has accused the Central Bank of Nigeria (CBN) of misappropriating over N2.7 trillion in interest charged on the N4.4 trillion Ways and Means Advances granted to the federal government.
The OAGF claims the apex bank treated these advances as loans from external or local lenders and insists the interest charged be refunded to the government.
This position is detailed in the OAGF’s response to a query from the Office of the Auditor General for the Federation (OAuGF) on the 2021 consolidated financial statement submitted to the National Assembly.
The Auditor General, Shaakaar Chira, had earlier flagged overdrawn balances totalling N17.106 trillion across the Consolidated Revenue Fund (CRF) and four ministries, departments, and agencies (MDAs).
He noted there was no approval or documentation supporting these balances.
The OAGF responded that the CRF’s negative balance included N4.4 trillion in Ways and Means Advances and interest, which the CBN had allegedly misused.
According to the OAGF, “CBN must refund the interest of N2.73 trillion it cornered for its sole use by 31 December 2021.”
It added that while the Debt Management Office (DMO) is reconciling domestic debt service and other financial obligations, the interest on the advances should not be securitised but refunded directly to the CRF.
The audit also highlighted other financial irregularities. Overhead budgets in 235 MDAs were exceeded by over N116 billion without evidence of supplementary appropriations or virement approvals.
Additionally, 44 agencies spent N92.67 billion on employee benefits without proper appropriation.
Long-term borrowings totalling N31.205 trillion were reported but lacked proper classification.
Meanwhile, over N1.985 trillion was recognised as intangible assets without clear disclosure of asset classes.
The OAGF dismissed some claims in the report, stating that reclassification of items such as “intangible assets” is pending discussions among relevant financial authorities.
The Auditor General’s report also further flagged unapproved personnel and overhead expenses, undisclosed liabilities on state debts, and overdrawn cash balances, exposing significant weaknesses in the federal government’s financial controls.
