Gom Mirian
In a recent publication, the Central Bank of Nigeria (CBN) announced that it owes an additional N3.15 trillion ($6.3 billion) in foreign currency forward contracts. These contracts represent forex obligations that the apex bank needs to fulfil to foreign investors.
This information was unveiled in the Consolidated Financial Statements for the fiscal years 2016 to 2022, which were released by the CBN on August 11 and retrieved by the Africa Health Report, AHR on Monday.
The CBN’s foreign currency forward contracts involve agreements to exchange a certain amount of one currency for another at a future date and an agreed-upon exchange rate. These contracts are commonly used to hedge against volatility in foreign exchange markets.
The consolidated financial statements offer a comprehensive overview of the CBN’s financial position and performance over the past seven years. The statements provide insights into the apex bank’s revenue, expenses, assets, and liabilities, including its forex obligations.
According to the publication, the financial statements uploaded on the CBN website which was violated by the suspended CBN governor Mr. Godwin Emiefiele is an indication that the apex bank, under the leadership of acting Governor Folashodun Shonubi, is ready to open its book to the public scrutiny.
It stated further that since 2005 when it started publishing details of its annual report on its website, the CBN never failed to publish the report until 2016 when it stopped the publication of the crucial documents.
According to the CBN Act 2007, the apex bank is expected to publish its report within two months after the end of each financial year.
“The Bank shall, within two months after the close of each financial year, transmit to the National Assembly and the President a copy of its annual accounts certified by the Auditor.
“A report required to be submitted to the National Assembly and the President shall be published by the Bank in such a manner as the Governor may direct. The Board shall ensure that accounts submitted under this section shall as soon as possible be published in the Gazette.
“The Bank shall as soon as be practicable after the last day of each month makeup end publish a return of its assets and liabilities as at the close of business on that day, or if that day is a holiday, as at the close of business on the last preceding business day,” the Act reads.
