THE Chief Executive Officers and top management staff of banks may also be probed during the ongoing investigation of the activities of the Central Bank of Nigeria, according to findings by this newspaper.
It was learnt that some bank CEOs would be invited in an effort to ascertain any discrepancies around the management of intervention funds by deposit money banks.
This newspaper had earlier reported that the Central Bank of Nigeria may be asked to withdraw its audited annual financial reports, which were recently released.
This came after a team investigating the apex bank discovered discrepancies and irregularities in the financial accounts.
In August, the CBN released its financial accounts for the years 2016 to 2022 amid an ongoing probe of the financial services sector regulator by a Special Investigator appointed by President Bola Tinubu.
Tinubu had on July 28 appointed a former Chief Executive Officer of the Financial Reporting Council of Nigeria, Jim Obazee, as Special Investigator to probe the activities of the apex bank under its suspended governor, Godwin Emefiele.
Aside from the CBN, the special investigator is also investigating the Nigerian National Petroleum Corporation Limited, FRC, and other Government Business Entities.
The President, in the letter which he personally signed, said the move was in continuation of the government’s anti-corruption fight.
The letter, dated July 28, 2023, read, “In accordance with the fundamental objectives set forth in Section 15(5) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), this administration is, today, continuing the fight against corruption by appointing you as a Special Investigator, to investigate the CBN and Related Entities. This appointment shall be with immediate effect and you are to report directly to my office.
“The full terms of your engagement as Special Investigator shall be communicated to you in due course but require that you immediately take steps to ensure the strengthening and probity of key Government Business Entities, further block leakages in CBN and related GBEs and provide a comprehensive report on public wealth currently in the hands of corrupt individuals and establishments (whether private or public).
“You are to investigate the CBN and related entities using a suitably experienced, competent and capable team and work with relevant security and anti-corruption agencies to deliver on this assignment. I shall expect a weekly briefing on the progress being made.”
The President also attached a copy of his directive suspending Godwin Emefiele as Governor of the CBN on June 9, 2023.
According to findings by this newspaper, the CBN Special Investigator is working with a team of accountants, auditors, and forensic accountants to carry out the investigation.
The Secretary to the Government of the Federation, George Akume, recently said the Federal Government will soon unveil the audit report of the probe of the CBN.
The SGF said that the probe report of the CBN when made public, would reveal how poor governance brought the country to the present predicament.
According to him, the report will enable Nigerians to know what really went wrong and how the country got to its present situation.
According to a top official, who spoke with this newspaper on the condition of anonymity, some top bank officials will be invited as the investigations proceed over undisbursed intervention funds.
Findings by this newspaper showed that N1.27tn intervention funds sit in the accounts of five banks.
This was based on an analysis of the half-year financial statements of Access Bank, Fidelity Bank, Guarantee Trust Bank, United Bank for Africa, and Zenith Bank.
The intervention funds cover lending facilities provided by the CBN through local banks, and the facilities include Accelerated Agriculture Development Scheme, Anchor Borrowers’ Programme, Commercial Agriculture Credit Scheme, Healthcare Sector Intervention Facility, and Paddy Aggregation Scheme.
They also include Micro, Small, and Medium Enterprises Development Fund, Real Sector Support Facility, 100 for 100 Policy on Production and Productivity, Export Facilitation Initiative, and the Creative Industry Financing Initiative.
Findings by The PUNCH showed that there was at least N530.07bn worth of intervention funds in Access Bank.
This included about N3.56bn under the Commercial Agriculture Credit Scheme, N1.57bn to facilitate the rapid rollout of agent networks across Nigeria supporting the expansion of a shared Agent Network, N58.84bn under the salary bailout fund, N99.04bn outstanding balance on the excess crude account loans, N9.34bn for the Real Sector Support Facility, N1.14bn for the Accelerated Agricultural Development Scheme.
It also included N955.61m for the Creative Industry Financing Initiative, N8.62bn for the Non-Oil Export Stimulation Facility, and N17.64bn for the Health Sector Intervention Facility, among others.
This newspaper also learnt that at least N310.52bn of the intervention funds sit in Fidelity Bank.
It included N80.65bn state bailout fund, N190.06bn Real Sector Support Facility – Differentiated Cash Reserves Requirement, N7.28bn Commercial Agriculture Credit Scheme, N2.5bn Paddy Aggregation Scheme, and N6.36bn 100 for 100 PPP.
This newspaper further observed that about N288.42bn of the intervention funds are in Zenith Bank.
It included N23.54bn Commercial Agriculture Credit Scheme Loan, N1.86bn Power & Aviation Intervention Fund, N125.14bn salary bailout fund, N71.53bn Excess Crude Loan Facility, N28.73bn Real Sector Support Facility and N9.13bn Non-Oil Export Stimulation Facility.
This newspaper also observed that there was about N115.09bn in GT Bank and N25.16bn in UBA as of June 30, 2023.
The new Governor of the Central Bank of Nigeria, Olayemi Cardoso, during his screening at the Senate, stated that there is a need to pull the apex bank from direct development finance interventions to refocus the priorities of the bank.
According to the new governor of the apex bank, the bank needs to move into a limited advisory role that supports economic growth rather than actively play a prominent role in the financing of these projects.
He emphasised the need to restore the apex bank’s independence and credibility by refocusing on its core mandate and ensuring a culture of compliance.
“Much has been made of past CBN forays into development financing such that the lines between monetary policy and fiscal intervention have become blurred.