The Central Bank of Nigeria has drawn the ire of Nigerians on social media, as they revealed a $ 13.8 billion debt owed to foreign banks (JP Morgan and Goldman Sachs).
Nairametrics reported that the apex bank owes JP Morgan and Goldman Sachs a combined sum of $7.5 billion as of the financial year ended December 2022.
Also included as part of its liabilities is another $6.3 billion owed in foreign currency forwards.
This was contained in the audited financial statement of the apex bank, published on its website.
Nigerians have taken to social media to express their concern about the debt as many questioned why the CBN was using the country’s foreign reserve as collateral for loans while others blamed the lack of oversight from the National Assembly.
Reactions on social media
Kalu Aja questioned why National Assembly failed to provide oversight functions that would have stopped Buhari and Emefiele from taking the loan.
- “Who owns 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, whichownsFx 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.”
Who own fx reserves? CBN
Who spent fx reserves? CBNSpent 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…
— Kalu Aja (@FinPlanKaluAja1) August 11, 2023
Seun Onigbinde also questioned the lack of checks and balances in the National Assembly.
- “That second term with no guardrails from the National Assembly wrecked the economy. I hope you realize why institutions matter and why independent entities must function so.”
That second term with no guardrails from the National Assembly wrecked the economy.
I hope you realise why institutions matter and why independent entities must function so.
— Olúṣeun Onígbindé (@seunonigbinde) August 11, 2023
Tola expressed his disappointment towards the debt and sees the lack of oversight as economic sabotage.
- “Reading the CBN financials and this is so unfair. This is wickedness. How does a CBN governor (Emefiele) mismanage any entire economy like this, with no oversight and no care for the 200 million people who will pay the price for such mismanagement. This is purely economic? sabotage”
Reading the CBN financials and this is so unfair. This is wickedness. How does a CBN governor (Emefiele) mismanage any entire economy like this, with no oversight and no care for the 200 million people who will pay the price for such mismanagement.
This is pure economy sabotage
— Tola (@adetolaov) August 11, 2023
MalachyOdo is of the opinion that aside CBN’s debt NNPC’s financial statement also should be looked into.
- People have only had a sneak peek into the affairs of CBN under Emefiele/Buhari and tears are flowing. By the time NNPC books are opened up, blood will flow. The thievery that went on between 2015-2023 is unprecedented.”
People have only had a sneak peek into the affairs of CBN under Emefiele/Buhari and tears are flowing.
By the time NNPC books are opened up, blood will flow.
The thievery that went on between 2015-2023 is unprecedented.
— Malachy Odo II (@MalachyOdo1) August 12, 2023
Ridwan Oke believes Buhari should also be blamed for CBN’s debt due to the fact that he renewed Emefiele’s tenure.
- “You can’t put the whole CBN issue on Emefiele. Whilst Emefiele is naturally an unfortunate person, Buhari didn’t just renew his tenure, he supervised his atrocities personally.
- Each of Buhari’s appointees knew from the date of their appointment that no matter how bad they were, they had job security. At no point did he fire any of his appointees for underperforming.
- The few he had to let go, he was literally forced to take action or they had to resign due to pressure from the public. He appointed them and left them to continue misbehaving. And these economic woes?
- He supervised them personally and he is responsible for all of them. That is Buhari’s legacy!”
You can't put the whole CBN issue on Emefiele. Whilst Emefiele is naturally an unfortunate person, Buhari didn't just renew his tenure, he supervised his atrocities personally. Each of Buhari's appointees knew from the date of their appointment that no matter how bad they were,…
— Ridwan Oke (@Ridwanullahii) August 12, 2023
Emeodi Mba thinks Emefiele won’t be indicted for the situation surrounding the CBN debt as he believes other political/government leaders are involved too.
- “The main reason they couldn’t indict Emefiele is bcos he’s not alone, many names must’ve popped up such as, Buhari & his inner circle, Minister of Finance, Leaders of 9th Assembly & others.
- The web likely must’ve touched Jagaban’Jagaban’s inner circle too, na why everybody run? No case!”
The main reason they couldn't indict Emefiele is bcos he's not alone, many names must've popped up such as, Buhari & his inner circle, Minister of Finance, Leaders of 9th Assembly & others.
The web likely must've touched Jagaban inner circle too, na why everybody run.
No case!
— Emeodi Mba (@EmodiMba) August 12, 2023
Bolu believes the CBN debt would hurt the naira/dollar exchange rate.
- “The summary of the released CBN financial statements is that the Naira will probably sink to 1,500 to USD within the next six (6) months.”
https://twitter.com/essentialbolu/status/1690055864743272451
Aisha Yesufu wants Buhari and Osibanjo to stand trial for the state of CBN debt.
- “Emefiele Osinbajo Buhari All should be on trial. There is no longer immunity for the last two”
Emefiele
Osinbajo
BuhariAll should be on trial. There is no longer immunity for the last two https://t.co/nPRix9Sc1Z
— Aisha Yesufu (@AishaYesufu) August 12, 2023