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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
VP Shettima, Governor Buni attend Zulum’s children’s wedding Fatiha in Maiduguri.
By: Yahaya Wakili
Vice President of the Federal Republic of Nigeria, Alhaji Kashim Shettima GCON; His Excellency, Governor Mai Mala Buni CON, COMN; the Speaker of the House of Representatives, Hon. Tajudden Abbas; Deputy President of the Senate, Senator Barau Jibrin; governors; emirs; and other dignitaries attend the wedding Fatiha of the children of Borno State Governor Babagana Umara Zulum in Maiduguri, Borno State capital.
Governor Mai Mala Buni of Yobe State became the Wali of the groom, Muhammad Idi Barde Gubana, the son of the deputy governor of Yobe State, while Alhaji Muhammad Indimi was the Wali to the bride, Aisha Babagana Umara Zulum, the daughter of the governor of Borno State.
The marriage contract was finally sealed after the confirmation of the presentation of the medical certificate of fitness and 12 gold coins, and it was officiated by Imam Shettima Mamman Saleh, the chief imam of the Borno State Emirate Council, who offered prayers to Almighty Allah for the success of the marriage.
Also in attendance were the governors of Gombe, Kaduna, Nasarawa, Kebbi, Zamfara, Sokoto, and Jigawa states as well as the deputy governor of Imo state.
Other dignitaries in attendance include the minister of budget and economic planning, former secretary to the Yobe state government Alhaji Baba Mallam Wali MNI, Ambassador Babagana Kingibe, Speaker of the Gombe state House of Assembly, Yobe state Head of Civil Service Alhaji Abdullahi Musa Shehu, and heads of agencies and parastatals.
The wedding Fatiha also witnesses the royal highnesses and fathers included. His Highness, the Emir of Fika and Chairman of the Yobe State Council of Traditional Rulers, Alhaji Dr. Muhammad Abali Muhammad Idriss, CON, CFR; Emir of Tikau, Alhaji Abubakar Muhammadu Ibn Grema II; Emir of Machina; Damaturu; Gudi; Fune; Jajere; Ngelzarma; as well as over thirty emirs from Borno State
VP Shettima, Governor Buni attend Zulum’s children’s wedding Fatiha in Maiduguri.
Troops conduct clearance operation in Borno
By: Zagazola Makama
Troops of Operation Hadin Kai have carried out a clearance operation targeting suspected insurgent enclaves in Kaga Local Government Area of Borno State.
Security sources said the operation was conducted on April 19 at about 1000 hrs by troops of 29 Task Force Brigade in conjunction with members of the Civilian Joint Task Force (CJTF).
The troops, mounted on Mine-Resistant Ambush Protected vehicles, Armoured Personnel Carriers and gun trucks, advanced from Benisheikh through key routes including Qwayari, Karnakasari, the Camel Route and Mainok axis.
According to the sources, the operation was aimed at clearing suspected Boko Haram enclaves and denying insurgents freedom of movement within the corridor.
However, for now, no contact was made with insurgents during the operation, as the operation continues.
Military authorities said the exercise was part of sustained clearance and domination operations across the North-East theatre.
They added that the overall security situation in the region remained calm but unpredictable, while troops’ morale and operational efficiency remained high.
Troops conduct clearance operation in Borno
Troops arrest four Berom criminal youths involved in causing havoc in Barkin Ladi LGA
By: Zagazola Makama
Troops of Sector 4 (Sub-Sector 41) under Operation Safe Haven have arrested four suspected criminals during a raid operation on an identified hideout in Barkin Ladi Local Government Area of Plateau state.
Security sources said the operation was carried out at about 2115 hrs on April 18 at the NTV Mazat area in Gashish District, following credible intelligence on the activities of suspected criminal elements in the locality.
During the raid, troops stormed the location and apprehended four suspects identified as Aaron Joshua, 21; Ernest David, 21; Ishaya Haruna, 19; and Kyenshak Yakubu, 28.
It was gathered that the suspects were involved in several atrocities and part of the wider network of youths causing havoc in several communities.
The suspects were reportedly taken into custody and subjected to preliminary profiling as part of ongoing investigations to determine their involvement in criminal activities within the area.
Security sources said the raid was part of sustained efforts to dismantle criminal networks and deny them freedom of action in the general area.
Troops arrest four Berom criminal youths involved in causing havoc in Barkin Ladi LGA
VP Shettima, Governor Buni attend Zulum’s children’s wedding Fatiha in Maiduguri.
Troops conduct clearance operation in Borno
Troops arrest four Berom criminal youths involved in causing havoc in Barkin Ladi LGA
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