BREAKING NEWS! DETAILS OF 2015 FINANCIAL REPORT OF THE CBN.

The 2015 financial report of the CBN was audited by two reputable auditing firms. Pricewaterhousecoopers and Ernst & Young. Trouble started for the incumbent governor of Central Bank, Godwin Emefiele when certain details were not provided by the CBN for the 2015 financial statement. For example, under the subhead Advances to Federal Government. The CBN claimed that they had transactions with Federal government and its subsidiaries that are exempted from their account. A schedule of the government agencies and how much that was given to each of them needed to be disclosed.
Secondly, the approving authority for the monies and how the monies were sourced were not also stated. Even the amount CBN claimed were material, among these transactions came to N1,959,730 trillion of which N1,367,729 trillion was used in 2015 alone.These are excluded from the accounts.
Financial experts who examined the CBN report expressed concern that the total income of the CBN 2015, was far less than this amount, meaning that the monies were printed. The questions, therefor, arose as to who authorized the printing, how much was printed and who authorized the spending.
However in their notes to CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS. The auditors explained that the bank's transactions with the Federal Government and fellow subsidiaries, under the control of the Federal Government, are exempted due to their nature. While material transactions and balances are disclosed.
Under the subhead INTERVENTIONS, the CBN also claimed that they intervened in certain circumstances, including sending monies to countries where there was important need for the fund. The total sum came to N117.059 billion and another N17,951 billion (for centre of Excellence) in the report, the breakdown and schedule of countries, the entities and institutions that benefited from the so called intervention were not provided. There was also no information on who authorized  the disbursements.
The auditors explained in the financial statement financial sector intervention expenses represented the amortization prepaid interventions arising from the fair valuation of below market interest rate loans to financial institutions for the purpose of onward lending to the agricultural sector, the AMCON notes, and the long term notes to AMCON and other banks. These loans, the auditors explained were extended as part of CBN activities in promoting economic growth, development and financial markets stability. The loans are for periods ranging from two to 10 years. In the financial statement, centers of Excellence was simply explained as expenditure incurred by CBN on various structures in universities across the country. While the beneficiaries were not mentioned.
President Buhari and the National security adviser received a 23 page review of the 2015 financial statement of the CBN shortly before the president left for the last UN- General Assembly meeting in New York.
After looking at the observations and recommendations, the presidency issued a query to the CBN governor based on the conclusion of the reviewers that the financial statement contained spurious and misleading claims that cannot be trusted for any serious policy pronouncement.
Emefiele, our source gathered, began to speak to highly placed individuals after receiving the query the deadline for the reply to the query elapsed on the 9th of November, 2016. All effort to convince the president by his contacts has failed.

FOLLOW UP ON THE CBN FINANCIAL REPORT
Under another subhead, "EXTERNAL RESERVES", financial experts have suggested that a forensic audit of the Foreign Reserve of the country needs to be carried out in view of the fact that it has been dropping since 2013. For instance, it dropped to N5.263.831 trillion in 2015 from N5.837.660 trillion in 2014; a difference of N573.829 billion. Coincidentally, the CBN reported a non-cash Foreign Exchange Revaluation gain of N565.803 billion which they claimed they also spent on personnel cost (N162.251 billion), Financial Sector intervention expenses (N154.305 billion) and other operating expenses (230.766 billion) whereas, the total profit of the CBN from its core business was only N136.307 billion. The suspicion and fear raised by financial analysts who were privileged to sight the report is that the CBN must have been spending directly from external reserves.
Extracts from the financial statement also indicated that under another subhead, "OTHER ASSETS", the CBN included sundry receivables of N1.334.304 trillion. Here, the CBN claimed that the sundry receivables includes prepaid staff expenses of N14.5 billion and prepaid intervention expenses of N1.305 trillion arising from below market interest loans to staff members and loans to the financial services sectors respectively. Again, the apex bank failed to make available to auditors those schedule for all of those monies to staff and financial service sector participants, thereby raising much suspicion of unauthorised spending.