CBN In Debt, Owes JP Morgan And Goldman Sachs $7.5 billion

CBN In Debt, Owes JP Morgan And Goldman Sachs $7.5 billion
CBN In Debt, Owes JP Morgan And Goldman Sachs $7.5 billion

The consolidated financial statements of the Central Bank of Nigeria (CBN) have revealed that the apex bank owes JP Morgan and Goldman Sachs a combined sum of $7.5 billion as of the financial year ended December 2022.

Also included as part of its liabilities is another $6.3 billion owned in foreign currency forwards.

The disclosure is part of CBN’s audited financial statement published on its website on Friday, August 11, 2023.

The bank reported a profit after tax of N103.8 billion in its most recent financial year. CBN stated that it owes American banking giant Goldman Sachs $500 million and JP Morgan $7 billion in securities lending.

It stated that it entered into a securities lending agreement with Goldman Sachs and JP Morgan as part of the agreement, pledging holdings on foreign securities in return for cash.

The ape bank revealed that the cash received from Goldman Sachs amounted to N0,23 trillion.

Meanwhile, for the first time since 2015, the CBN finally released its long-awaited audited accounts, posting a profit of N103.8 billion in 2022, the highest since 2017.

The results, which are published on the CBN website, also had audited results for the last six years which showed the apex bank recorded a profit of N124.4 bin in 2016; N107.3 bn in 2017; N43.7bn in 2018; N34.6 bn in 2019; N30.8bn 2020 and N75.1 bn in 2021.

Further findings showed the loans to the federal government also known as ‘Ways and Means’ totalling N23 trillion earned interest of N1.9 trillion for the apex bank compared to N1.2 trillion in the prior year.

The apex bank’s results reported that it earned an additional N247 billion and N156 billion from Asset Management Company of Nigeria and federal government securities respectively.