Audit Report Reveals $4.5 Billion Gap in Nigeria’s Foreign Reserves
An audit report from the Office of the Auditor-General of the Federation (OAuGF) has revealed a significant gap of $4.5 billion in Nigeria’s Foreign Reserves between 2018 and 2019. The report indicates that the reserves decreased from US$42.59 billion to US$38.09 billion during this period, raising concerns about accountability.
Emir Aminu Ado Bayero of Kano voiced these concerns during a meeting with First Lady Remi Tinubu, highlighting the worsening hunger and starvation in Nigeria since President Bola Tinubu assumed office in May 2023. He also decried the escalating insecurity in the country and urged for urgent actions to address these challenges.
The Auditor-General, Shaakaa Chira, called on the Central Bank of Nigeria (CBN) to provide justification for the ‘missing funds,’ as their inability to maintain a stable exchange rate could jeopardize the economy. The report also revealed an ‘unsubstantiated’ decline of over $8 billion in foreign reserves between 2019 and 2020, raising further concerns about accountability and transparency in the management of public funds.
In response to these revelations, the CBN cited interventions such as the Presidential Artisanal Gold Mining Initiative (PAGMI) and agricultural sector support to boost reserves. However, experts warn that the missing funds could erode trust in Nigeria’s financial institutions, hinder economic growth, and increase debt collection and servicing.
Lukman Rahim, an Associate Chartered Accountant and lecturer at the University of Jos, emphasized the impact on citizens’ purchasing power and the government’s ability to invest in crucial sectors like education and healthcare. Emmanuel Yoko, Director at the Nigerian College of Accountancy, expressed concerns about increased debt and its complexities.
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