CBN Faults Business Day Report On Bank’s Finances

According to the statement credited to the CBN, “The attention of the Central Bank of Nigeria (CBN) has been drawn to the lead story in the BusinessDay newspaper of Monday, June 17, 2019, headlined: “CBN’s life support to FG rises 780% to N8.12trn in 4yrs.

We wish to state categorically that the story is not only false, but an attempt, through sheer mischief, to distort and misrepresent CBN’s financial operations and also to misinform the investing public on the financial health of our country.

In order to arrive at their plot, the authors of the Business Day story had conveniently restricted their report only to CBN’s claims on the Federal Government while ignoring other numerous deposits of the Federal Government, including those of the Treasury Single Account (TSA), with the CBN,.

As can be clearly deduced by any unbiased and informed analyst, when the claims of the FG on CBN are netted against the claims of the CBN on the FG, the resulting net positions indicate that the FG was actually the net creditor to CBN in 2014, 2015 and 2017 to the tune of N2.14 trillion, N1.65 trillion and N0.36 trillion, respectively. On the other hand, CBN was the net creditor to the FG in 2016 and 2018 to the tune of N0.11 trillion and N0.34 trillion, respectively.

From the foregoing and the detailed database, it is clearly inappropriate to compare the position as at end-2018 with the position as at end-2014, ignoring the movements within the period.

We wish therefore to reassure the investing community and the general public that the CBN remains faithful to its statutory mandate as banker and financial adviser to the Federal Government.”

Source: The Bridge