CBN splashes N507bn on ‘national security’ despite rising insecurity

The Central Bank of Nigeria has incurred N507 billion as intervention expenses on national security, armed forces, and state security among others between 2014 and 2022, a development that continues to increase the bank’s operating expenses.

Data sourced from the apex bank’s consolidated financial statements showed CBN spent N125.3 billion on intervention expenses, the highest since it started publishing annual reports.

“Intervention activities expenses represent expenses carried out by CBN in connection with national security, federal government, state securities, armed forces, and financial sector capacity building where there is an important need for the fund,” CBN said in its latest financial statement.

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It added, “All payments made in relation to intervention activities embarked on by the Group are expensed as incurred. However, payments made by the Group in relation to intervention activities on behalf of the Federal Government are recognised as receivables and are fully impaired after 12 months if the amount is not received from the Federal Government.”

Further breakdown showed the CBN spent N125.3 bn on intervention funds in 2022, N45.4bn in 2021; N28.6 bn in 2020; N21.4 bn in 2019; N44.9bn in 2018; N19.3 bn in 2017 and N38.5bn in 2016.

Despite CBN expenses since 2014, many Nigerians are at the mercy of bandits, terrorists and other criminals who are ravaging many parts of the country.

Apart from the destruction of lives and property, the Nigerian economy continues to suffer as rising insecurity dents investors’ appetite to invest in the country.

Experts said terrorism and other forms of insecurity have persisted for more than a decade unabated, despite the billions of naira spent on security annually.