The Financial Reporting Council of Nigeria (FRCN) on Thursday blamed financial regulatory agencies including the Central Bank of Nigeria (CBN) for the depletion of the country’s foreign reserves.
The council also said that poor accountability of regulatory agencies should be blamed for alleged repatriation of $13.9 billion by MTN.
The Executive Secretary of the FECN, Jim Obazee stated at a public hearing held by the Senate Committee on Banking, Insurance and other Financial Institutions on the alleged repatriation of $13.9 billion by MTN.
The committee asked Obazee what could account for the massive depletion of the nation’s foreign reserves.
Obazee said, “The short answer to it is very poor and weak accountability and regulatory practice in Nigeria.
“The regulatory agencies are not working but if they are working definitely a lot of these infractions will not occur.
“You cannot have the security personnel at your gate who has suddenly left the gate open and then you said somebody stole your assets and you can’t find them.
“The regulatory agencies after all their submissions will definitely find their role in all of them because there are laws that they are supposed to protect.
“If you are not protecting them then definitely some openings like this where you see this depletion.
“The regulatory agencies themselves will need to check their own financial statement especially those who are supposed to account for our external reserves.
“If we continue to see a drop year in year out, there is supposed to be full explanation to the National Assembly or the government why our external reserves is dropping while there are inflows that are not adequately matched with outflows.”
Obazee also claimed that the regulatory agencies had not submitted their financial reports for over four years.
He noted that the council could contribute better to the growth of the economy if the regulatory agencies performed their jobs effectively.
He said that such contribution to the economy would require government to mandate its entities to prepare up to date financial statement and forward them to the council for review.
He said, “You will be surprised that a number of government entities for the past four years could not prepare financial statements.
“These entities should not be entitled to budgetary funds because you have not accounted for the money that was given to you before.
“Why are you asking for new one.”