The financial affairs of the
Central Bank of Nigeria (CBN) have once again come under the spotlight, with
the House of Representatives turning its attention to the Financial Reporting
Council of Nigeria (FRC) following questions raised by former Special Investigator,
Jim Obazee.
The latest development has opened
another chapter in the growing scrutiny of the apex bank's 2024 and 2025
financial statements, as lawmakers seek documents and explanations that could
shed more light on how the accounts were prepared and reviewed.
The House, through its Committee
on Delegated Legislation, chaired by Hon. Richard Olufemi Bamisile, is asking
the FRC for relevant records concerning the CBN's audited consolidated and
separate financial statements for the financial years ended December 31, 2024
and December 31, 2025.
The development is coming on the
heels of issues raised by Obazee during his examination of the CBN's financial
reporting.
Obazee's findings had brought
attention to several areas of the CBN's accounts, including the treatment of
its Deferred Foreign Exchange Revaluation Account (DFERA), reported at about
₦13.7 trillion.
Other issues included the
treatment of the Federal Government's overdraft, deferred costs and the
distinction between realised and unrealised foreign-exchange gains and losses.
The concerns generated wider
questions about the way some major items were treated in the CBN's financial
statements and the accounting framework used in reporting them.
Now, with the House seeking
information from the FRC, attention is gradually moving from the figures
themselves to the process behind them.
The FRC's role has become an
important part of the latest parliamentary inquiry.
The House committee wants
relevant documents and approvals relating to the CBN's 2024 and 2025 audited
consolidated and separate financial statements.
It is also seeking the financial
reporting framework or manual applicable to the preparation of the accounts, as
well as other relevant documents in the Council's possession.
For the lawmakers, these
documents could help provide a clearer picture of the journey of the accounts from preparation and auditing to regulatory review and eventual publication.
They could also help explain the
respective roles of the CBN, its external auditors and the FRC in the process.
The latest development comes as
interest in the CBN's financial reporting continues to grow.
Earlier questions had centred on
the extent of information contained in the apex bank's published financial
statements, including concerns over the publication of summary financial
statements rather than the complete audited accounts and accompanying disclosures
such as the auditors' report and Key Audit Matters.
There have also been questions
around audit-related and non-audit engagements involving the firms responsible
for examining the CBN's financial statements.
The House's latest request to the
FRC could therefore help add another layer of information to the ongoing
examination of the accounts.
At the heart of the latest
development is a simple question: **How did the CBN's 2024 and 2025 financial
statements get from preparation to publication, and what regulatory processes
stood behind them?**
The committee is seeking
documents that could help answer that question, including the accounting
framework used and records relating to the review and approval process.
The September 16 correspondence
to the FRC represents the latest development in the matter, as lawmakers
continue to examine the issues surrounding the CBN's financial reporting.
For now, the request for
documents does not establish that the CBN's accounts are invalid or that the
FRC, the apex bank, its auditors or any individual breached the law.
Rather, the lawmakers are seeking
the records and explanations needed to better understand the accounting and
regulatory processes behind the accounts.
And as the FRC responds to the
House, its documents could provide fresh insight into one of the most closely
watched aspects of the CBN's recent financial reporting.
Post a Comment