The Central Bank of Nigeria (CBN) has criticized JP Morgan’s published estimation of the bank’s financial accounts, raising concerns about the motive behind it.
![](https://thenigerialawyer.com/wp-content/uploads/2026/09/2026-IDRI-Masterclass.png")
This assertion was made by Hassan Mahmud, Director of the Monetary Policy Department of CBN, during his appearance on the Money Line television program.
JP Morgan, a prominent American multinational financial services firm, highlighted various factors such as foreign exchange forwards, securities lending, currency swaps, and outstanding contracts that have contributed to a substantial decline in Nigeria’s net external reserves. According to JP Morgan, these reserves hit an unprecedented low of $3.7 billion by the end of the previous year, significantly lower than their previous estimates.
Mahmud emphasized the CBN’s commitment to transparency, underscoring that reserve levels are dynamic and subject to change at any given time. He expressed skepticism toward JP Morgan’s numbers, suggesting that their intentions might involve influencing market sentiment or misleading the public.
Mahmud further clarified that reserves, akin to account balances, experience fluctuations due to ongoing changes. He illustrated his point with an analogy: even if an account holds $20 million while having a liability of $13 million payable in 2027, it would be inaccurate to claim the net balance as $7 million. Mahmud argued that such an approach misrepresents the context and disregards future revenue streams that can offset liabilities.
Addressing the liabilities tied to the reserves, Mahmud noted that these obligations were anticipated. He detailed how CBN established resources to support the Nigerian currency’s value against other currencies, with around 80% of the reserves being CBN’s funds.
Additionally, Mahmud clarified the role of the dollar component in the reserves. It not only instills international confidence in CBN’s ability to meet trade commitments but also allows for intervention in currency markets to maintain a desired equilibrium exchange rate. He highlighted that reserves aren’t solely for trading purposes; they can also facilitate short-term engagements allowed under the CBN Act if there are shortfalls in their buildup.
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
Available now for NGN 40,000 at ASC Publications, 10, Boyle Street, Onikan, Lagos. Beside High Court, TBS. Email publications@ayindesanni.com or WhatsApp +2347056667384. Purchase Link: https://paystack.com/buy/evidence-act-complete-annotation
______________________________________________________________________ “Enhance Legal Practice With Authoritative Reports” — Alexander Payne Offers Comprehensive Law Reports, Spanning Over A Century Of Nigerian Jurisprudence
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
