CBN Faults Senate's Position on Alleged Unremitted Operational Surpluses

Says 80% of excesses remitted yearly

The Central Bank of Nigeria (CBN) yesterday disagreed with Senate over allegation of unremitted 80 per cent of operational surpluses into the Consolidated Revenue Fund (CRF) since 2016.

The Chairman of the Senate Committee on Finance, Senator Adeola Olamilekan had at an interactive session with revenue generating agencies accused the CBN of not remitting its operational surpluses within the last five years.

The ranking Senator in making the allegation had said, "Nigeria wouldn't have been having problem of inadequate revenue to fund its annual budget if revenue generating agencies, were remitting 80 per cent of their operational surpluses into the CRF as required by the Fiscal Responsibility Act.

"Specifically, the Central Bank of Nigeria which has yearly budget of N2.3 trillion has not remitted any revenue from its operational surpluses into the Consolidated Revenue Fund within the last five years."

But in a swift reaction, the Deputy Governor of CBN in charge of Economic Policy, Dr. Kingsley Obiora debunked the allegation, saying 80 per cent of the central bank's operational surpluses have always been remitted to the CRF annually.

The remittance, he explained was usually done in line with the provisions of the Fiscal Responsibility Act and not that of the CBN Act which stipulates 75 per cent remittance.

His words: "With all due respect to the Senate and in particular this committee, the CBN as a law abiding government agency, had not at any time, defaulted in the remittance of its operational surpluses.

"We do this on yearly basis as required by the Fiscal Responsibility Act despite the fact that the CBN Act requires us, to remit 75 per cent only."

The Chairman of the committee however directed the CBN to produce documentary evidence of its remittances in the last five years unfailingly by Friday.

Adeola also told the apex bank to produce its Audited Account in the last five years as well as its position paper on monetary policy point of view on the 2022 - 2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper being considered by the committee.

According to him: "He who comes to equity must come with clean hands. Since you have declared before the whole world that CBN has been remitting 80 per cent operational surpluses into CRF, it is necessary that we see the documentary evidence as that would lay the controversy to rest. Let's have these documents latest by 11:00am on Friday."

Attempt by the committee chairman to get the Director General of Budget Office, Mr. Ben Akabueze, to confirm or dispute the claims of the CBN proved abortive as Akabueze said verification to that effect would be determined by an ongoing process.