Reps Open Probe Into CBN’s Delegated Powers, Financial Irregularities

The House of Representatives Committee on Delegated Legislation has commenced an investigation into the exercise of delegated legislative powers by the Central Bank of Nigeria (CBN), including concerns over financial transactions, charges, expenditures and other monetary obligations arising from the apex bank’s regulatory instruments.

The investigation followed a motion titled “Investigation into the Exercise of Delegated Legislative Powers by the Central Bank of Nigeria and Related Financial Irregularities,” sponsored by Hon. Baraje Yusuf Kure, representing Bosso/Paikoro Federal Constituency of Niger State.

The committee, chaired by Hon. Richard Olufemi Bamisile, unanimously resolved to scrutinise the CBN’s regulations, rules, guidelines, circulars, directives and other subsidiary legislative instruments to determine whether they were made and implemented within the powers conferred on the apex bank by the Constitution and relevant Acts of the National Assembly.

The lawmakers are also examining the financial implications of such instruments, particularly fees, charges, penalties, expenditures and other financial obligations imposed, collected, authorised or incurred pursuant to CBN regulations and directives.

As part of the investigation, the committee directed CBN Governor, Olayemi Cardoso, relevant officials and members of the bank’s board to appear and provide regulations, guidelines, circulars, approvals, financial records, implementation reports and other documents required for the inquiry.

The committee also resolved to invite the Financial Reporting Council of Nigeria (FRC), audit firms KPMG and Ernst & Young (EY), economist Bismarck Rewane, the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN).

Bamisile specifically directed the CBN to submit its summary and full consolidated financial statements for the years ended December 31, 2024 and December 31, 2025.

The bank is also expected to provide the financial reporting manual approved by its board and the FRC and used in preparing the audited accounts for the two years, as well as the relevant report issued to the CBN by its external auditors.

The FRC is expected to provide copies of its approvals relating to the CBN’s audited consolidated and separate financial statements for 2024 and 2025, together with the financial reporting manual issued to the apex bank for preparation of the accounts.

KPMG and EY have similarly been directed to submit copies of the CBN’s audited accounts for 2024 and 2025, the relevant reports issued to the bank and the frameworks approved by CBN management and used in preparing the accounts.

All requested documents are to be submitted to the committee on or before *October 6, 2026* for legislative scrutiny.

The committee has also asked Jim Obazee to provide all relevant evidence and documents in his possession concerning the concerns he previously raised about the CBN’s financial statements.

Obazee, who previously served as President Bola Tinubu’s Special Investigator on the CBN and related entities, has publicly raised questions about the apex bank’s 2024 and 2025 financial reporting.

In September, Obazee called on the FRC to review the CBN’s 2025 financial statements, arguing that the full and summary accounts should be examined. He also raised questions over disclosures contained in the accounts and the basis on which some figures were presented.

The committee's decision to request his supporting evidence means the concerns will now be subjected to legislative scrutiny alongside documents from the CBN, FRC and its external auditors.

Moving the motion, Kure acknowledged that the CBN is empowered under its enabling legislation to issue regulations, rules, guidelines, circulars and other subsidiary legislative instruments to carry out its statutory responsibilities.

He, however, stressed that the exercise of those powers must remain within the limits prescribed by the 1999 Constitution, as amended, and relevant Acts of the National Assembly.

Kure said the House was concerned about allegations surrounding certain financial transactions, expenditures, charges, regulatory actions and other activities of the CBN which may have arisen from, or been carried out pursuant to, regulations, guidelines, circulars and other subsidiary legislative instruments issued by the bank.

He said the committee had a responsibility to determine whether such delegated powers were exercised lawfully and in accordance with the enabling legislation.

A key aspect of the investigation will therefore be to establish whether financial obligations, fees, charges, penalties and other monetary consequences arising from CBN subsidiary legislation have proper statutory and regulatory foundations.

The committee’s Deputy Chairman, Hon. Dominic Okafor, also raised concerns about what he described as non-transparent and questionable audited accounts of the CBN.

Okafor linked the concerns to broader questions about accountability at the apex bank, particularly following allegations relating to its 2024 and 2025 accounts.

He argued that if the allegations are substantiated, the implications could extend beyond the CBN to government finances, the banking sector, investors and Nigeria’s international reputation.

According to Okafor, concerns about the reliability of CBN financial reporting could affect confidence in government fiscal data and complicate economic policy-making.

He further argued that uncertainties surrounding the financial position and disclosures of the central bank could undermine confidence in Nigeria’s financial system and influence how investors assess institutional risk.

However, these remain concerns and assertions raised in the course of the legislative proceedings, with the committee yet to make a final finding on the allegations.

The committee resolved that where financial matters identified during the exercise fall outside its specific mandate, they would be referred to the appropriate House committee or other competent authority for further investigation.

At the conclusion of the exercise, the committee is expected to consider its findings and recommendations and, where necessary, seek further directives or concurrence from the House.

The investigation therefore has the potential to go beyond a review of the CBN’s 2024 and 2025 accounts.

It could also examine the legal chain connecting the CBN Act and other enabling legislation to the regulations, guidelines and circulars through which the apex bank exercises its regulatory powers.

The documents expected by October 6 are likely to be central to determining whether the concerns raised by lawmakers and Obazee are supported by the underlying financial records, audit documentation and applicable regulatory frameworks.

For now, the committee has not established that the CBN acted unlawfully or that the audited accounts contain proven irregularities. The investigation is intended to establish the facts, examine the relevant documents and determine whether further legislative or regulatory action is required.