The Central Bank of Nigeria (CBN) on Wednesday reacted to the BusinessDay’s report on Monday saying the Treasury Single Account (TSA) covers the overdraft to the Federal Government.
BusinessDay on Monday, June 17, 2019, published a report headlined: “CBN’s life support to FG rises 780% to N8.12trn in 4yrs”.
The CBN in a statement signed by Isaac Okorafor, director, corporate communications, said Business Day restricted its report only to CBN’s claims on the Federal Government while ignoring other numerous deposits of the Federal Government, including those of the Treasury Single Account (TSA), with the CBN.
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According to the statement, when the claims of the FG on CBN are netted against the claims of the CBN on the FG, the resulting net positions indicate that the FG was actually the net creditor to CBN in 2014, 2015 and 2017 to the tune of N2.14 trillion, N1.65 trillion and N0.36 trillion, respectively. On the other hand, CBN was the net creditor to the FG in 2016 and 2018 to the tune of N0.11 trillion and N0.34 trillion, respectively.
The CBN said it is clearly inappropriate to compare the position as at end-2018 with the position as at end-2014, ignoring the movements within the period.
“We wish therefore to reassure the investing community and the general public that the CBN remains faithful to its statutory mandate as banker and financial adviser to the Federal Government”, the statement added.
