How $4.5 Billion Disappeared From Nigeria's Foreign Reserve- Auditor General

By Mohammed Bello Doka

An audit report released by the Office of the Auditor-General of the Federation (OAuGF) has sparked widespread concern over the inability to account for a staggering $4.5 billion in Nigeria's Foreign Reserves during the period spanning 2018 to 2019.

The annual audit report, a vital tool in ensuring transparency and accountability in government financial affairs, has brought to light a significant discrepancy in Nigeria's Foreign Reserves. According to the findings, Nigeria's Foreign Reserves, which stood at a robust US$42,594,842,852.75 in December 2018, witnessed a dramatic decline, plummeting to US$38,092,720,200.72 by the close of 2019. This alarming decrease has raised questions regarding the management and utilization of the country's financial resources, with a perplexing gap of US$4,502,122,652.03 left unaccounted for.

The emergence of this discrepancy has sent shockwaves throughout the nation, particularly against the backdrop of the COVID-19 pandemic, which inflicted severe economic strain globally. The timing of the unexplained shortfall coincides with the tenure of Godwin Emefiele, the former governor of the Central Bank of Nigeria (CBN), who now finds himself embroiled in allegations of corruption. While Emefiele's tenure was marked by efforts to stabilize Nigeria's economy amidst turbulent times, the revelation of this substantial unaccounted sum casts a shadow over his legacy and raises serious questions about fiscal management during his leadership.

Shaakaa Chira, the Auditor-General of the Federation, has issued a stern call to action, urging the Central Bank of Nigeria (CBN) to provide a transparent and detailed account of the missing funds. The Auditor-General emphasized the critical importance of upholding the principles of accountability and transparency in managing the nation's financial reserves. Furthermore, Chira underscored the potential ramifications of failing to address this discrepancy promptly, warning that the stability of Nigeria's exchange rate could be compromised, posing grave risks to the country's economic stability.

"This violates Section 25 of the Central Bank of Nigeria Act, 2007, mandating the Bank to maintain external reserves at levels deemed appropriate for the Nigerian economy and monetary system," emphasized Chira, highlighting the legal and regulatory obligations that have been overlooked.

The revelation of the unexplained $4.5 billion discrepancy in Nigeria's Foreign Reserves serves as a stark reminder of the pressing need for robust oversight and accountability mechanisms within the country's financial institutions. As calls for transparency grow louder, the government faces mounting pressure to address this glaring discrepancy and restore public trust in the management of Nigeria's economic resources.