Amid N30trn Ways And Means Probe, Senate Amends CBN Act

The Senate, yesterday, passed a Bill to increase the percentage of Ways and Means loans the Central Bank of Nigeria (CBN) could give to the federal government from five percent to a maximum of 10 percent.

The red chamber of the Nigerian legislature effected the change through an amendment to the CBN Act 2004, a development that increases the total CBN advances (loans) to the federal government.

LEADERSHIP reports that the legislative action comes ironically at the time when the Senate is currently tidying its investigation into the N30 trillion Ways and Means Loans granted to former President Muhammadu Buhari-led federal government by the CBN led by its detained former governor, Godwin Emefiele.

The Senate had in February resolved to probe the N30trn Ways and Means, which according to it, was recklessly spent.

Known as the Ways and Means, the apex bank offers short-term financing or overdrafts to the federal government to cover its budget shortfalls.

This bill was an executive bill sent by President Bola Ahmed Tinubu to both chambers.

In the Senate, Senate Leader Opeyemi Bamidele read the Executive Bill, which passed the first, second, and third readings during the session.

The amendment bill initially proposed a borrowing limit of 15%, but several Senators opposed it, cautioning that it should not exceed 10% to ensure fiscal discipline in the system.

In his lead debate, Bamidele explained that the purpose of the Bill was to enable the federal government to meet its immediate and future obligations, given the government’s increasing need for funds to finance budget deficits and other expenses.

Also, the House of Representatives repealed and enacted the Appropriation Act of 2024, worth N35.05 trillion, to address some illegal issues inherent in the extant law.

Of the total sum, N1.74 trillion is for Statutory Transfers, N8.27 trillion is for Debt Service, N11.26 trillion is for Recurrent (Non-Debt) Expenditure, and N13.77 trillion is for contribution to the Development Fund for Capital Expenditure.

This was sequel to the passage for a third time a “Bill for an Act to Repeal the Appropriation Act, 2024 and Enact the Appropriation Act 2024 to authorise the issue from the Consolidated Revenue Fund of the Federation the total sum of N35,055,536,770,218,” at plenary on Wednesday.

Opposition Lawmakers Walk Out

Meanwhile, some opposition lawmakers staged a walkout after the House approved the amendment to raise the Ways and Means Advances from CBN to the federal government from five to 10 percent.
During consideration at the Committee of the Whole, House Minority Leader, Hon. Kingsley Chinda, had asked the lawmakers to reduce the loan limit to two percent to ensure accountability and transparency.

However, the chairman of the House Committee on Finance, Hon. James Faleke quickly interjected, insisting that the present five percent was not enough for the government to rely on.

After the debate, Deputy Speaker Benjamin Kalu, who chairs the Committee of the Whole, hit the gavel to seal the passage of the legislation despite the resounding ‘nays’ and the fewer ‘aiyes’.

At this point, some lawmakers belonging to opposition parties staged a walkout to register their pleasure despite the deputy speaker’s pleas that the increase was also a way for the government to fund the new N70,000 minimum wage.