Senate engages CBN over alleged N1.44trn unremitted surplus

The Senate Committee on Banking, Insurance and Other Financial Institutions on Thursday met with the leadership of the Central Bank of Nigeria (CBN) to demand clarification on the alleged non-remittance of N1.44 trillion into the Consolidated Revenue Fund.

CBN Governor Olayemi Cardoso, led the apex bank’s delegation to the meeting held at the National Assembly Complex, Abuja.

Chairman of the Committee, Senator Mukhail Adetokunbo Abiru (Lagos East), said the interface was prompted by a national newspaper report citing the Auditor-General’s 2022 report, which alleged that the bank failed to remit the Federal Government’s share of its operating surplus.

“A recent national newspaper publication referenced the Auditor-General’s 2022 report indicating that the CBN allegedly failed to remit N1.44 trillion of the federal government’s portion of operating surplus into the Consolidated Revenue Fund,” Senator Abiru said.

“Given the strong public interest in this matter, we expect a clear and comprehensive explanation , covering the factual position, remedial actions taken, and steps to prevent a recurrence,” he added.

Abiru, while acknowledging the CBN’s recent reforms, said its oversight duty required it to seek clarity on issues of significant public concern to ensure the integrity of the nation’s financial system.

The Senator queried the effectiveness of the 45% Cash Reserve Ratio (CRR) in moderating inflation and asked whether the CBN planned to review the policy in 2026 to free up credit for the private sector.

He also sought clarification on the rationale behind the 75% CRR imposed on non-TSA public sector deposits at the September MPC meeting.

The Senate Committee asked the CBN to outline updated regulatory frameworks for mitigating cyber threats, managing digital lending risks and ensuring innovation does not compromise consumer protection.

The committee also requested details on the CBN’s role in the proposed recapitalisation of the Bank of Industry (BOI) and the Bank of Agriculture (BOA) as provided in the 2025 budget.

Lawmakers sought updates on the meetings and resolutions of the Financial Services Regulatory Coordinating Committee (FSRCC) for 2025, as mandated under Section 43 of the CBN Act.

Other issues raised included the status of the ongoing banking sector recapitalisation exercise, submission of the CBN’s 2026 budget, progress on clearing outstanding FX forwards, measures to address the circulation of mutilated naira notes, efforts to curb excessive bank charges, and steps to strengthen cooperation between the CBN and the committee.

In his presentation, Cardoso enumerated the achievements of the apex bank in the year 2025, and provided the 2026 projections.

“The outlook for 2026 is positive. Inflation will moderate further, FX stability will persist and the banking sector’s resilience will strengthen.

Key priorities include prudential oversight, inflation targeting, liquidity and FX management, payment infrastructure,” he said.

After his presentation, the Senate called for a closed-door session with the CBN delegation for further inquiries.

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