30th May, 2015
The Central Bank of Nigeria (CBN) net income has dropped to N35.4 billion in 2014 from N209.6 billion in 2013, according to a financial statement report released by the apex bank on Friday in Abuja.
“The net income of the bank for 2013 was to N209.6 billion while that of 2014 is N 35.4 billion,” the report said.
It said that 80 per cent of the amount had been remitted to the Federal Government in accordance with the Fiscal Responsibility Act.
According to the report, the balance of 20 per cent has also been transferred to the Reserves within the apex bank.
It said that CBN’s audited financial statements for 2013 and 2014 had been released officially and that the International Financial Reporting Standards (IFRS) was adopted for its financial statements.
The report further said that the two financial statements posted on the apex bank’s website had been approved by its board in accordance with the provisions of the CBN Act 2007.
“The IFRS, one of the frameworks internationally recognised and accepted, mandates adopters of the framework to prepare consolidated financial statements,” it added.
It said that the IFRS requirement implied that the financial statement of the CBN must be consolidated with those of investee’ s entities, including Nigeria Export-Import Bank, Abuja Securities and Commodities Exchange and Bank of Industry.
Others include Bank of Agriculture, Nigeria Interbank Settlement System, National Economic Reconstruction Fund, Financial Markets Dealers Quotation, African Finance Corporation and Agricultural Credit Guarantee Fund.
“The Bank now has full IFRS-compliant financial statements for the years ended December 31, 2013 and December 31, 2014, respectively,” the report said.
It also said that the bank’s financial statements had been prepared under the CBN framework, adding that the adoption of IFRS by the CBN or any central bank the world over was not without difficulties and challenges.
The report said the non-profit-oriented mandate of central banks was one of the challenges encountered in the roles of price and financial system stability and economic growth.
“Another challenge is the statutory constraints of the central banks.
“This explains why very few central banks have adopted the IFRS.”
It further said that the apex bank was, however, able to work around these challenges to conclude a successful adoption of the IFRS within two years.