CBN Extends Deadline For Submission Of Bank Financial Statement, Threatens To Sanction Defaulters

Banks and other financial institutions (OFIs) have been given three months' grace to submit their 2019 audited financial statements following the deadline extension by the Central Bank of Nigeria (CBN). The extension comes with a threat of sanction by the CBN.

According to a statement seen by AllNews, the CBN stated that the 2019 audited financial statements of banks and other financial institutions (OFIs), which was initially scheduled for the month after the first quarter, can now be submitted before July 31, 2020.

Traditionally, the banks submit their financial statements before the end of April or face sanctions from the apex bank, however, due to the disruption of business activities caused by the COVID-19 pandemic, the CBN offered the banks and other financial institutions (OFIs) three months extra.

Note that while the pandemic affected activities in the financial sector, it also affected the external auditors, hence the extension of deadline. The new development was contained in a statement seen by AllNews. The CBN said defaulters of the deadline will be sanctioned.

“Pursuant to the provisions of section 27 (1) (a) of BOFIA, all the banks and OFIs are required to forward the audited financial statements of each financial year to the CBN for approval before the end of the fourth month following the year to which they relate. Accordingly, the 2019 Audited Financial Statements should have reached the CBN on or before April 30, 2020.

“However, we have observed that the lockdown of most cities in the country due to the coronavirus pandemic has restricted the engagement of External Auditors and the daily operations of all OFIs across the country.

“Therefore, the deadline for submission has been extended by three months. For the avoidance of doubt, all Other Financial Institutions are required to submit the 2019 Audited Financial Statements on or before July 31, 2020.”