According to an audit report from the Office of the Auditor-General of the Federation (OAuGF), an amount totaling $4.5 billion cannot be explained in Nigeria’s Foreign Reserves during the period of 2018 to 2019.
The yearly report on audit provides comprehensive information about the spending and financial affairs of the various ministries, departments, and agencies under the government throughout a fiscal year.
According to the report, Foreign Reserves, which stood at US$42,594,842,852.75 in December 2018, decreased to US$38,092,720,200.72 in 2019. By a simple calculation, US$4,502,122,652.03 could not be accounted for.
The violation occurred following the COVID-19 outbreak, during the tenure of Godwin Emefiele, the former governor of the Central Bank of Nigeria (CBN), who is presently grappling with allegations of corruption.
Shaakaa Chira, the Auditor-General of the Federation, has urged the Central Bank of Nigeria (CBN) to offer an explanation for the funds that are unaccounted for. It is important to note that the stability of the exchange rate may be jeopardized if the CBN fails to provide justification for these funds.
“This violates Section 25 of the Central Bank of Nigeria Act, 2007 mandating the Bank to endeavour to maintain external reserves at levels considered to be appropriate for the economy and the monetary system of Nigeria.”