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CBN DEFENDS SELF ON ANNUAL AUDIT

By NBF News
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The Central Bank of Nigeria (CBN) has said that the bank audits its accounts annually and presents same to the Government of the Federation, in line with statutory requirements.

This is even as the apex bank said that the composition of its Board of Directors is not dominated by appointees from within the staff of the institution as erroneously misrepresented in some publications.

According to a statement made available to Daily Sun, signed by Director, Corporate Communications Central Bank of Nigeria, Mr. Ugochukwu A. Okoroafor, the bank said that the financial year of the CBN ends on the 31st of December of each year and the audited annual accounts is usually ready in February in line with the provisions of Section 50 (1) of the CBN Act. No 7 of 2007.

Contrary to reports that the bank does not audit its account, CBN said it is important to state that for the preparation of its annual accounts, the bank employs the services of two international reputable accounting firms (among the big 8), based on the approval of the President of the Federal Republic of Nigeria.

The statement from further states as follows: 'upon the completion of the audit exercise, the Bank makes the accounts available to the Presidency and to the National Assembly through the latter's relevant Committees. In addition, the CBN is audited by the Auditor-General of the Federation and appears before the Public Accounts Committees of the Senate and the House of Representatives to answer questions arising from the report.

'The CBN has never been in default of these provisions and has been diligent in compliance since the passage of the Act. Similarly, the CBN has always forwarded each year, seven (7) copies each of the Audited Accounts and Management Letters to both the Auditor General of the Federation and the Accountant-General of the Federation. Letters of acknowledgement in this relevant matter are usually published in national dailies,' the statement said.

On the composition of the Board which the bank alleged misrepresentation that the CBN Board actually has only two (2) external and five (5) internal members, the bank noted the following:

'Sections 6 (1) and (2) of the CBN Act 2007, provide for twelve (12) members of the Board; five (5) internal and seven (7) external. The Governor and the four (4) Deputy Governors comprise the internal membership. There are seven (7) external non-executive members, among who are two (2) institutional members. Consistent with the provisions of the CBN Act 2007, the non-executive members constitute a clear majority of the Board of the CBN.

All members of the CBN Board are appointees of the President of the Federal Republic of Nigeria and are confirmed by the Senate. They conduct themselves with the requisite sense of responsibility.