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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
Troops intercept 11 youths with donkeys during patrol in Borno
By: Zagazola Makama
Troops of 68 Battalion have intercepted 11 youths during a routine patrol in Mallam Fatori area of Abadam Local Government Area of Borno State.
Security sources said the interception occurred along the Bulagana–Cheisa axis on April 2 during ongoing clearance operations in the area.
According to the sources, the individuals were found moving in the area with 12 donkeys when they were stopped and briefly interrogated by troops.
The sources added that the youths were later handed over, alongside the animals, to relevant authorities in a neighbouring country for further necessary action.
The military said the patrol was part of sustained efforts to maintain security dominance and prevent exploitation of border communities by criminal elements.
Troops intercept 11 youths with donkeys during patrol in Borno
Troops recover ammunition, logistics items in Kwara patrol operation
By: Zagazola Makama
Troops of the Nigerian Army under the 22 Brigade have recovered ammunition and other logistics items during a fighting patrol in Ifelodun Local Government Area of Kwara State.
A security source disclosed that the operation was conducted at about 4:00 p.m. on April 2 at Daban Lema, where troops of the brigade, operating from the Patrol Base, encountered signs of suspected terrorist activities in a deserted location.
According to the source, the troops immediately carried out exploitation of the area, leading to the recovery of four rounds of 7.62mm special ammunition and one empty PKT ammunition belt link.
Other items recovered include four mobile phones, two head warmers, two small solar panels, and assorted repair tools believed to have been used by the suspected terrorists.
The source added that the recovery indicates the presence and movement of suspected criminal elements within the area, noting that troops have intensified surveillance and patrols to deny them freedom of action.
Troops recover ammunition, logistics items in Kwara patrol operation
Troops foil attack by Criminal Youths, rescue victims, arrest suspects in plateau
By: Zagazola Makama
Troops of Sector 1, Operation Enduring Peace (OPEP), have foiled an attack on residents at Dutse Uku in Jos North Local Government Area of Plateau State.
A security source said the troops responded swiftly to a report of sporadic gunshots in the area at about 11:50 p.m. on April 2.
According to the source, upon arrival at the scene, the suspected criminals fled, abandoning their operation due to the prompt intervention of the troops.
He said the troops rescued two victims who sustained gunshot wounds during the incident and immediately evacuated them to a hospital for medical attention.
The source further disclosed that two suspects, dressed in black attire, were arrested at the scene.
Items recovered from the suspects include a cutlass and a knife.
He added that the suspects are currently in military custody and undergoing preliminary investigation, while efforts are ongoing to track down other fleeing members of the group.
Zagazola report that despite heightened security, there has been report of pocket of attacks in some communities.
The source reassured residents of the military’s commitment to protecting lives and property and urged the public to continue providing timely information to security agencies.
Troops foil attack by Criminal Youths, rescue victims, arrest suspects in plateau
Troops intercept 11 youths with donkeys during patrol in Borno
Troops, CJTF arrest three suspected Boko Haram logistics suppliers in Borno
Troops recover ammunition, logistics items in Kwara patrol operation
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