How Osinbajo Supervised N32 trillion Printing By CBN, Borrowed $13.8billion Secret Loans From US
Fresh facts have emerged on why President Bola Tinubu administration cannot sustain the subsidy regime and the harmonized exchange rate reform which has created unbearable volatility in the economic space owing to the inability of the apex bank to clear the backlog of foreign exchange demand and sustain supply.
Findings revealed how the Central Bank of Nigeria(CBN) used the foreign reserve as collateral to obtain $13.8billion from US and printed N32 trillion spent unaccounted under President Muhammadu Buhari and Vice President, Prof. Yemi Osinbajo as the head of economic management team. These, were done secretly.
Data from the seven years financial statements recently released by the CBN, revealed an accumulated debt totalling $13.8 billion.
Further examination discloses that the CBN has a combined outstanding obligation of $7.5 billion to JP Morgan and Goldman Sachs as of the conclusion of the financial year in December 2022.
Additionally, the Central Bank carries an additional liability of $6.3 billion in foreign currency forward contracts, representing foreign exchange commitments to overseas investors. Considering that the CBN’s financial report displays the existing Foreign Exchange (FX) Reserves at $30.10 billion, the encumbered amount of $13.8 billion reduces the nation’s reserves to $17.0 billion.
However, the current status of these loans remains unclear due to the absence of interim financial statements released by the Central Bank. Despite this, the published external reserve position of the CBN indicates a present reserve balance of $33.9 billion.
But, BusinessDay reported that the CBN’s debt to some foreign banks may cost Nigeria 40.7 per cent of its entire foreign reserves currently standing at $34.1 billion.
BusinessDay’s calculations showed an inability to meet the above obligations due to FX shortages might cost Nigeria 40.7 per cent of its $34.1billion foreign reserves.
Experts who spoke to BusinessDay said the above development has caused distrust about Nigeria’s current external reserves despite the CBN delivering a much-needed reform in floating the currency in June.
“Senior treasury officials from banks and portfolio managers are telling me that they don’t trust the numbers the CBN is stating as the official foreign reserves position,” Kelvin Emmanuel, CEO at Dairy Hills Ltd said.
“And they believe that this is contributing to the apex bank’s inability to clear FX backlogs up to date,” he added.
Reacting to this development, a financial analyst, Kalu Aja via his verified Twitter page blamed the country’s federal lawmakers for their failure to provide oversight functions that would have stopped Buhari and from taking the loan.
He said, “Who own 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 N23 trillion for Buhari to spend at will without oversight. Who should have provided oversight on the printing of N23 trillion? “Well National Assembly and Debt Management Office. So the CBN printed N23 trillion that 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”.
Another user, Serah Ibrahim, said Prof Yemi Osinbanjo who served as the head of the National Economic Council during Buhari’s regime should not be exonerated from the mess.
He said, “Osinbajo is the biggest ghost worker in history. We cannot blame Emefiele for his economic blunders without also blaming Buhari and the BDSM ghost worker of Aso Rock. Osinbajo was the head of NEC but claims his hands were always tied as the BDSM performer that he is but stood by and watched Emefiele take loans from 2 US Banks secretly and used Nigeria’s foreign reserve as collateral.
“How can CBN borrow $13.8 billion from US Banks and then use Nigeria’s foreign reserve as collateral. They have sold this country and completely destroyed our economy on purpose. They also secretly printed N32 trillion.”
