The Central Bank of Nigeria (CBN) has denied allegations by the House of Representatives that it did not remit over $5 billion into the Federation Account describing the issue as “feign imagination.”
The House had on Wednesday accused the CBN of non-remittance of over $5 billion into the federation account and has resolved to set up an ad hoc committee to investigate the alleged infraction by the apex bank.
The allegation was contained in a motion sponsored by Ayo Omidiran (Osun/APC) accusing the CBN of flouting Sections 80 (1&2) and 81 of the constitution by failing to remit into government coffers revenue amounting to more than $5 billion.
But the CBN in swift reaction to the allegation, said “It is not possible to divert any money into any account like that.”
The Acting Director, Corporate Communication Mr Isaac Okorafor told the Daily Times in a text message that the apex bank keeps account for government and cannot divert what it maintains.
He explained “When we convert forex into Naira, we have both selling rate and buying rate. And we make it known to everyone.” Okorafor emphasised that the CBN has nothing to do with any secret account. “I am sure if anyone requires clarification on any of our activities we will be happy to do so.
Our operations are clear, structured, professional and always in national interest,” he added. Part of the allegations was that the apex bank “takes advantage of this all important function of warehousing funds for the three tiers of government and preparation of the federation account statement, to manipulate the system by opening various accounts not known to the three tiers of government where funds are remitted, hidden, diverted and spent without authorization.”
The lawmaker alleged that in 2006, the CBN opened various accounts with JP Morgan Chase Bank in New York, in which oil companies remit revenues for the federation, even as it maintains another account with the Federal Reserve Bank of New York. According to her, the CBN’s responsibility of receiving revenue in foreign currencies and converting same to Naira for the benefit of the three tiers of government, has led to substantial loss in the amounts remitted to the federation account.
“The substantial difference between the official exchange rate of dollar to Naira, and that at which bureau de change sell in the parallel market, whereas it’s the CBN that sells dollars to the bureau de change operators on a weekly basis, as well as regulate the financial market.
“In the recent past, FAAC meetings have been postponed due to irregularities observed in the federation account by the states. “The CBN has violated Section 80 (2) of the 1999 Constitution by spending funds not appropriated by the National Assembly.
“The CBN takes 0.25 per cent of all foreign denominated revenue as exchange commission for converting dollars to Naira, but even after deducting this commission, the balance credited to the federation account at various times have been in negative difference (against expectations), running into billions of Naira per year.
“The office of the accountant general of the federation hasn’t reported these infractions of under-remittance of millions of dollars and trillions of Naira into the federation account by the CBN,” Rep. Omidiran asserted. However, the CBN advised Nigerians to always cross check their facts before making public any issue that could jeopardize the image of public institutions.
