Breaking its years-long streak of non-disclosure, the Central Bank of Nigeria (CBN) has finally published its Consolidated Financial Statements for the last seven years, marking a significant move towards transparency. This marks the first release of such statements since 2015.

Formerly suspended CBN governor, Godwin Emefiele, faced criticism for withholding the financial statements from public scrutiny.

The Consolidated Financial Statements, spanning from 2016 to 2022, have now been made accessible on the CBN’s official website. This disclosure includes the financial periods for 2016, 2017, 2018, 2019, 2020, 2021, and 2022.

Notably, the CBN reported a profit after tax of N103.8 billion in 2022, marking an increase from N75.13 billion reported in the previous year.

Additionally, the apex bank revealed its financial obligations to JP Morgan and Goldman Sachs. It owes these entities a combined sum of $7.5 billion as of December 2022. The CBN also acknowledged $6.3 billion in liabilities denominated in foreign currency forwards.

The bank clarified that it owes Goldman Sachs $500 million and JP Morgan $7 billion under the classification of securities lending.

The 2022 financial statement highlighted the details of a securities lending agreement with Goldman Sachs and J. P. Morgan. The CBN pledged its foreign securities holdings in return for cash, resulting in funds received from these institutions. The report outlined that $500 million from Goldman Sachs and $7 billion from JP Morgan were recognized as part of “other foreign securities.”

These financial disclosures indicate that securities lending constitutes a portion of the CBN’s total external reserves, amounting to approximately N14.3 trillion or $29 billion using the official exchange rate of N494/$1 for 2022.

The CBN’s financial transparency efforts extend to acknowledging an additional N3.15 trillion ($6.3 billion) in foreign currency forward obligations to foreign investors.

In accordance with the CBN Act 2007, the central bank is required to publish its financial reports within two months after the close of each financial year. This move towards transparency and public disclosure is seen as a positive step for the institution under the leadership of acting Governor Folashodun Shonubi.

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