Reps Committee Investigates CBN Delegated Legislation Over Irregularity Claims

The Central Bank of Nigeria (CBN) is under scrutiny by the House of Representatives’ Committee on Delegated Legislation, led by Hon. Richard Olufemi Bamisile, which has resolved to investigate the institution’s exercise of its delegated legislative powers and any related financial irregularities.

The resolution followed a motion titled “Investigation into the Exercise of Delegated Legislative Powers by CBN and Related Financial Irregularities,” sponsored by Hon. Baraje Yusuf Kure, who represents Bosho/Paikoro, Niger State.

Consequently, the Committee unanimously resolved to invite the CBN Governor, Yemi Cardoso, along with relevant CBN officials and all board members to present all pertinent regulations, guidelines, circulars, approvals, financial records, implementation reports, and other necessary documents.

The Committee will also invite stakeholders and experts, including the Financial Reporting Council (FRC), KPMG, Ernst & Young, Bismarck Rewane, the Institute of Chartered Accountants of Nigeria (ICAN), and the Association of National Accountants of Nigeria (ANAN), whose testimony may assist in determining the legality and financial implications of the CBN’s subsidiary legislation.

The lawmakers further resolved that financial matters falling outside the Committee’s mandate shall be referred to the appropriate House Committee or competent authority for further investigation. Upon completion, the Committee will adopt its findings and recommendations and, where necessary, seek further directives from the House.

During the session, Hon. Bamisile directed that the CBN submit summary and the full consolidated financial statements for December 2024 and December 31, 2025, the financial reporting manual approved by the board and the FRC used for the preparation of the audited accounts for the two years, and the domestic report issued to the CBN by its external auditrs.

The FRC according to the committee chairman is to provide copies, the approvals of CBN’s audited consolidated and separate financial statements for the same period, and the financial reporting manual issued to the CBN by the Council for the preparation of the audited accounts for the two years.

The two auditors, KPMG and Ernst & Young, are to submit copies of the CBN’s audited accounts for 2024, and 2025, the domestic report issued to the CBN, and the framework approved by the executive management of the CBN that was used in preparing the audited accounts for 2024 and 2025.

Regarding Jim Obazee, who raised concerns about the audited accounts, Bamishile said he should also submit all relevant evidence to the Committee, ordering that all requested documents must be submitted to the Committee on or before October 6, 2026, for legislative scrutiny.

Leading the debate, Hon. Kure acknowledged that the CBN, under its enabling legislation, is empowered to issue regulations, rules, guidelines, circulars, and other subsidiary legislative instruments for fulfilling its statutory responsibilities. However, he emphasised that such powers must be exercised strictly within the limits prescribed by the 1999 Constitution (as amended) and other relevant Acts of the National Assembly.

He stated, “The House is concerned about allegations regarding certain financial transactions, expenditures, charges, regulatory actions, and other activities of the CBN which may have arisen from, or been carried out pursuant to, regulations, guidelines, circulars, or other subsidiary legislative instruments issued by the Bank.”

Hon. Kure further argued that the Committee is responsible for scrutinising subsidiary legislation made by public authorities to ensure that delegated powers are exercised lawfully, appropriately, and in accordance with enabling legislation. He stressed the need to establish whether financial obligations, expenditures, fees, charges, penalties, or other monetary consequences arising from CBN subsidiary legislation have proper statutory and regulatory bases.

Deputy Chairman, Hon. Dominic Okafor, highlighted the risks posed by non-transparent and questionable audited accounts issued by the CBN, underscoring the need for legislative intervention.

He acknowledged that President Bola Tinubu inherited an economy on the brink of collapse in 2023, prompting drastic reforms such as the removal of the petrol subsidy and the unification of foreign exchange windows. While these steps aimed to restore confidence and stability, Okafor lamented renewed concerns over transparency at the CBN, especially following allegations of irregularities in the audited accounts for 2024 and 2025 as detailed by the President’s special investigator, Mr Jim Obazee.

He added, “The Financial Reporting Council (FRC) and the CBN’s silence have raised further alarm regarding oversight and accountability. If these allegations are substantiated, the implications are profound for the federal government, ordinary Nigerians, the banking sector, foreign investment, and Nigeria’s international reputation.”

Honourable Okafor highlighted that opaque and questionable audited accounts from the CBN pose multiple threats: undermining economic policy and banking supervision effectiveness, jeopardising Nigerian welfare, eroding investor confidence, and damaging Nigeria’s global reputation. He emphasised that restoring transparency and accountability at the central bank is crucial for Nigeria’s economic recovery and future growth.

To the Federal Government, he noted that lack of transparency in the CBN’s audited accounts undermines confidence in government fiscal data, potentially leading to misguided policy decisions, budgetary errors, and poor debt management. This erodes the credibility of government actions and complicates economic management.

For Ordinary Nigerians, he explained that inaccurate reporting can distort inflation, exchange rates, and interest rates, increasing the cost of living and eroding savings and pensions. “The social burden of poor transparency falls most heavily on vulnerable populations”, he noted.

He noted that, as the regulator of commercial banks, questionable CBN disclosures weaken its moral authority and the integrity of regulatory oversight, undermining trust in the financial system, while uncertainties regarding CBN finances increase institutional risk, making Nigeria less attractive and potentially raising borrowing costs as investors require reliable data to assess risk.

He concluded by saying that questionable audited accounts of the CBN create persistent doubts about CBN financial reporting and may damage the credibility of all official data, undermining progress in financial stability, anti-corruption, and market governance.

“It causes lasting reputational damage to the country, even after technical corrections”, he stated.