In a fervent call for transparency and accountability, Nigerian citizens, notably on social media platform X (formerly known as Twitter), are urging immediate actions against former President Muhammadu Buhari and the suspended governor of the Central Bank of Nigeria (CBN), Godwin Emefiele. The allegations in question revolve around the purported use of the country’s foreign reserve as collateral for loans, stirring significant controversy.
SaharaReporters, a reputable news outlet, brought this issue to light on a recent Friday, revealing that the Central Bank of Nigeria acknowledged a significant debt to foreign entities, including the reputable US-based firms The Goldman Sachs Group and JPMorgan Chase & Co. The total amount in question stands at a staggering $13.8 billion, equivalent to approximately N10.6 trillion.
The revelation emerged from the CBN’s audited financial statement, made accessible to the public through SaharaReporters’ website. The financial disclosure disclosed that JP Morgan and Goldman Sachs hold a combined debt of $7.5 billion from the apex bank, as of the financial year concluding in December 2022. The specifics further unveiled that Goldman Sachs is owed $500 million, while JP Morgan’s share amounts to a significant $7 billion in securities lending.
The CBN revealed that the debt resulted from a securities lending agreement entered into with Goldman Sachs and JP Morgan. As part of this agreement, the CBN pledged holdings of foreign securities in exchange for cash, raising concerns about the implications of such a financial move.
A report from BusinessDay shed light on the potentially grave consequences of the CBN’s debts to foreign banks, suggesting that it could incur a cost to Nigeria equating to 40.7 percent of its entire foreign reserves, currently valued at $34.1 billion. This revelation has created a cloud of distrust around Nigeria’s current external reserves, even amid the CBN’s efforts in implementing vital currency reforms.
Notably, experts interviewed by BusinessDay expressed skepticism about the accuracy of the CBN’s official foreign reserves figures, with concerns that this lack of transparency might be contributing to the lingering FX backlogs, which the apex bank has struggled to address.
A prominent financial analyst, Kalu Aja, voiced his criticism of the country’s federal lawmakers, holding them accountable for the failure to provide effective oversight, which, in his opinion, could have prevented Buhari and Emefiele from embarking on such a financial endeavor.
The outcry from the Nigerian public underscores the urgency for thorough investigations, accountability, and the restoration of public trust in the management of the country’s financial resources. As the nation grapples with the implications of these allegations, Nigerians continue to demand answers, actions, and a renewed commitment to ensuring the proper utilization of vital national assets.
He said, “Who own fx reserves? CBN Who spent fx reserves? CBN Spent on what? Defending the Naira. Why did the Naira need defending? Because it was weak I.e. $1: N469. Why was the Naira weak? Many reasons but a big reason was the CBN printed N23t for Buhari to spend at will without oversight. Who should have provided oversight on the printing of N23t? “Well National Assembly and Debt Management Office. So the CBN printed N23t, that made the Naira lose value, then same CBN used foreign reserves to prop up the Naira they were weakening? Yes. Will anyone go to jail? Depends” Another user, Serah Ibrahim, said Prof Yemi Osinbanjo who served as the head of the National Economic Council during Buhari’s regime should not be exonerated from the mess.
He said, “Osinbajo is the biggest ghost worker in history. We cannot blame Emefiele for his economic blunders without also blaming Buhari and the BDSM ghost worker of Aso Rock. Osinbajo was the head of NEC but claims his hands were always tied as the BDSM performer that he is but stood by and watched Emefiele take loans from 2 US Banks SECRETLY and used Nigeria’s foreign reserve as collateral.
“How can CBN borrow $13.8 BILLION from US Banks and then use Nigeria’s foreign reserve as a COLLATERAL. They have sold this country and completely destroyed our economy ON PURPOSE. They also secretly printed ₦32 trillion.
“Emiefele did not act alone, everything was done under instructions from Buhari.
“You cannot arrest Emiefele and allow Buhari and BDSM Ghost Worker to roam free.
“Buhari and Osinbajo should also be arrested for this economic sabotage.
“We are in deep trouble in Nigeria.”
Another user, Nefertiti also said, “Obasanjo grew your Foreign Reserve from $5.4B to $51.3B. He cleared your debts as well. Buhari has sank Nigeria back in 13.8B debt. Bubu & Emefiele took loans from US banks using Nigeria’s Foreign Reserve as collateral. CBN printed N32T in Ways & Means. WHERE ARE THESE MONIES?
“When you read that CBN’s Audited Report, you will weep for Nigeria. Buhari had no business managing a kiosk, much less an LGA. The damage APC did to Nigeria will take more than 30 years to cleanup. CBN did not publish any audited report in 8 years.”