CBN Accounts Under Scrutiny as Reps Demand FRC Records, Explanation

The 2024 and 2025 financial statements of the Central Bank of Nigeria (CBN) have come under fresh scrutiny, with the House of Representatives demanding records and explanations from the Financial Reporting Council of Nigeria (FRC) over the accounts.

The latest development follows questions raised by former Special Investigator, Jim Obazee, over aspects of the apex bank's financial reporting and has now shifted attention to the regulatory and accounting processes behind the statements.

The House, through its Committee on Delegated Legislation chaired by Hon. Richard Olufemi Bamisile, is seeking relevant documents from the FRC concerning the CBN's audited consolidated and separate financial statements for the financial years ended December 31, 2024 and December 31, 2025.

The committee's request is aimed at obtaining a clearer picture of the accounting framework, regulatory processes and supporting documentation behind the financial statements.

The latest scrutiny follows concerns previously raised by Obazee during his examination of the CBN's financial reporting.

Among the issues that attracted attention was the treatment of the apex bank's Deferred Foreign Exchange Revaluation Account (DFERA), reported at about ₦13.7 trillion.

Questions were also raised over the treatment of the Federal Government's overdraft, deferred costs and the accounting distinction between realised and unrealised foreign-exchange gains and losses.

The issues prompted wider questions about how some of the figures in the CBN's accounts were treated and the accounting framework applied in preparing the statements.

The House committee is now seeking documents that could help it examine those issues from the regulatory side.

The committee has asked the FRC for 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, alongside other relevant documents in the Council's possession.

The requested records could help lawmakers trace the statements through the stages of preparation, auditing, regulatory review and publication.

They could also provide clarification on the respective roles of the CBN, its external auditors and the FRC in the financial reporting process.

The demand comes amid earlier questions concerning the extent of information made publicly available by the apex bank.

Part of the scrutiny had focused on the publication of summary financial statements rather than the complete audited accounts and accompanying audit disclosures, including the auditors' report and Key Audit Matters.

Questions have also been raised concerning audit-related and non-audit engagements involving the firms responsible for examining the CBN's financial statements.

With the latest request, the House committee's scrutiny is moving beyond the figures contained in the CBN's accounts to the paper trail behind them.

The lawmakers are seeking to establish what accounting framework was applied, what regulatory processes were followed and what documentation supports the treatment and presentation of the accounts.

The September 16 correspondence to the FRC is the latest development in the matter, with the Council now expected to provide the records and information requested by the committee.

The request, however, does not by itself establish that the CBN's financial statements are invalid or that the FRC, the apex bank, its auditors or any individual breached the law.

Rather, the lawmakers are seeking documentary evidence as they examine whether the relevant accounting, auditing and financial-reporting procedures were followed.

The FRC's response could therefore provide further insight into the processes behind the CBN's 2024 and 2025 financial statements and help clarify some of the questions that have emerged since Obazee's findings.