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MR. PRESIDENT; WITHHOLD ASSENT TO THE AMENDMENT OF THE CENTRAL BANK OF NIGERIA ACT
MR. PRESIDENT; WITHHOLD ASSENT TO THE AMENDMENT OF THE CENTRAL BANK OF NIGERIA ACT
By: Michael Mike
Centre for Social Justices (CSJ) notes with regret the recent amendment to the Central Bank of Nigeria Act, increasing advances the CBN can grant to the Federal Government of Nigeria from 5 percent to 15 percent. The amendment contradicts best practices in fiscal responsibility and is an authorization of the Executive to create macroeconomic distortions through arbitrary and increased ways and means funding.
We recall that the extant S.38 of the CBN Act grants FGN access to ways and means financing in respect of temporary deficiency of budget revenue at such rate of interest as may be determined by CBN. The total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of FGN. All Advances made pursuant to this authority shall be repaid – (a) as soon as possible and shall in any event be repayable by the end of the Federal Government financial year in which they are granted and if such advances remain unpaid at the end of the year, the power of CBN to grant such further advances in any subsequent years shall not be exercisable, unless the outstanding advances have been repaid.
According to Senator Gobir said: “The very essence of this bill is to enable the federal government to meet its immediate and future obligation in the approval of the ways and means by the National Assembly and advances to the federal government by the Central Bank of Nigeria. This amendment is very consequential and it needs the support of us all. This is to enable the federal government to embark on very important projects that will inflate and rejig the economy.” However, the amendment is a misconceived route to meeting the needs and obligations of FGN and definitely cannot be the road to rejigging the economy. It will rather create new macroeconomic challenges.
Specifically, the following issues are noteworthy:
v If FGN has not been able to refund previous advances from the CBN at 5 percent of previous year’s revenue, what machinery did the amendment put in place to ensure that FGN will be in a position to repay 15 percent of previous years revenue by the end of its financial year?
v There is evidence that previous advances from the CBN were in excess of the 5 percent rule and instead of reforms to ensure conformity with fit and good practices, a leeway is provided for deepening fiscal mischief.
v Previous high levels of advances led the Executive to incur over N23trillion in ways and means which could not be repaid and had to be converted by the National Assembly to long term indebtedness contrary to the provisions of the CBN Act.
v S. 38 (1) of the CBN Act categorically states that such advance should be in respect to temporary deficiency of budget revenue and not as a means of funding the deficit budget as the Federal Government has resorted to in recent years. Over the years and in accordance with fit and good practices, ways and means has never been listed in the Appropriation Act as a source of funding the deficit.
v The option of resorting to ways and means to fund budgetary deficits further increases the already high inflation rate especially when done by printing money not backed by value. Thus, it erodes the value of the Naira, and real income; it reduces purchasing power of citizens.
v The amendment of the CBN Act did not follow due process; it was arbitrary and lacking in popular particpation. There was no opportunity of a public hearing and publicity, to give room for Nigerians to make inputs on this very crucial matter with potentials to negatively affect overall economic growth and general welfare of the people.
In the light of the foregoing, CSJ strongly appeals to President Bola Ahmed Tinubu to withhold assent to the bill. CSJ acknowledges the revenue challenges facing the nation but the implementation of this particular bill (if it becomes law) will create monumental macroeconomic challenges now and in the future.
Eze Onyekpere Sundayson Chidi
Lead Director Program Manager, Public Finance Management.
MR. PRESIDENT; WITHHOLD ASSENT TO THE AMENDMENT OF THE CENTRAL BANK OF NIGERIA ACT
Zulum Inaugurates Borno’s 2024 Hajj Committee
By: Our Reporter
Borno State Governor, Babagana Umara Zulum, has inaugurated the 2024 Hajj committee that would ensure the proper welfare of Pilgrims from the state during the forthcoming 2024 Hajj exercise.
Inaugurating the committee on Saturday at the council chamber of the government house in Maiduguri, Zulum assured improved welfare for all pilgrims from Borno State.
The 21-member committee would be chaired by the Senator representing Borno Central, Barrister Kaka Shehu Lawan.
The governor charged the committee members to work diligently towards meeting the expectations of pilgrims from Borno State.
He said, “I urge you to be dedicated in order to reduce some of the complaints by pilgrims.”
Zulum also noted that the pilgrim welfare board would be reorganised to become a commission to reduce the financial burden resulting from the pilgrimage activities by the government.
“We have to reorganise the Pilgrim Welfare Board; we shall convert the board to a commission. Establishing a commission reduces government spending and ensures more accountability and transparency,” Zulum said.
The governor also explained why the deputy governor, who has been the Chairman of the state Hajj committee for the last four years could not serve in that capacity this year.
Zulum said, “Since I assumed office as governor of Borno in 2019, the deputy governor has been the Chair of our Hajj committee. But this year, we decided to change because I am also going and don’t want to create a leadership vacuum in the state. He will oversee the affairs of the state in my absence.”
Responding, the committee’s Chairman, Senator Kaka Shehu Lawan, urged the committee members to consider the assignment a serious job involving issues of welfare, safety and the logistics involved from Maiduguri to Saudi Arabia and returning them to the country.
He expressed gratitude to Governor Babagana Umara Zulum for finding them worthy and assured him of delivering on the task given to them.
Zulum Inaugurates Borno’s 2024 Hajj Committee
IED planted by ISWAP Kills 8 Civilian JTF Members In Borno
By: Zagazola Makama
At Least 8 members of the Civilian Joint Task Force have been killed by an improvised explosive device (IED) planted by ISWAP terrorists in Gamborun Local Government Area of Borno State.
It was gathered that the victims instantly died after they stepped on a landmine suspected to have been planted by ISWAP on Saturday, April 27, 2024, on their way to Maiduguri from Gamborun Ngala.
Intelligence sources told Zagazola Makama that three other victims sustained various degrees of injuries.
The wounded were evacuated to the hospital while the nine CJTF who paid the supreme price were taken to their families for burial arrangements.
IED planted by ISWAP Kills 8 Civilian JTF Members In Borno
Zulum Approves Employment for 15 People with Disability
By: Michael Mike
Borno State Governor, Prof Babagana Zulum has approved the employment of 15 people with disability with bachelor’s degree certificates, NCEs, diplomas and vocational training certificates.
The governor gave the approval in Maiduguri on Friday night at the Government House.
He said: “I am delighted to note that despite your disability, you people are not lazy; you decided to pursue your education, and for this, I want to commend you.
“I directed the Commissioner of Education to process your application for employment for my approval immediately. Therefore, I want to bring to your kind notice that you should be on the payroll of Borno State Government effective 1st May, 2024, in sha Allah.”
He directed the commissioner of education, Engr Lawan Abba Wakilbe, to review the activities of all the blind schools in Borno State in order to train more people with disability.
Zulum also ordered the Ministry of Education to work out modalities for introducing the teaching of special education courses at the College of Education in Bama.
“I am happy that they have obtained their qualifications in different specialisations. Let’s strengthen the College of Education in Bama to start delivering courses on special education,” Zulum ordered.
Earlier in his address, Borno State Branch Chairman of the Nigerian Association of the Blind, Mohammed Mustapha, expressed gratitude to Governor Zulum for approving employment for his members.
Zulum Approves Employment for 15 People with Disability
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