News
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
News
Troops Neutralise Terrorist, One Vigilante Injured in Sokoto
Troops Neutralise Terrorist, One Vigilante Injured in Sokoto
By: Zagazola Makama
Troops of the Nigerian Army have neutralised a suspected terrorist during a firefight in Wurno Local Government Area of Sokoto State.
Security sources told Zagazola Makama that the incident occurred at about 12:10 a.m. on April 23 when troops of 8 Division Garrison, deployed at Forward Operating Base (FOB) Marnona, responded to intelligence on terrorist activities at Illela village.
The sources said the troops made contact with the assailants and engaged them in a gun battle.
“Following the exchange of fire, one terrorist was neutralised, while others fled the scene,” the sources said.
They added that a vigilante member who supported the operation sustained a gunshot wound during the encounter and was evacuated for medical attention.
According to the sources, troops have continued to dominate the general area to forestall further terrorist activities.
Troops Neutralise Terrorist, One Vigilante Injured in Sokoto
News
285 Graduate From the NOUN Maiduguri Centre
285 Graduate From the NOUN Maiduguri Centre
By: Bodunrin Kayode
285 students have graduated from the Maiduguri study centre of the National Open University (NOUN) last weekend.
The convocation ceremony which was conducted at the Baga road centre by the director Associate Prof Buba Shani was the largest so far in the history of the Borno centre.
Revealing this in a post convocation chat was the director of centre, Associate Prof Buba Shani who spoke with this reporter on the gains, achievements and the challenges associated with managing the only centre in Borno state.
He revealed that electricity supply from the national grid was the primary challenge he had to face headlong when he took charge adding that it was very obvious power supply affected the daily administration and the conducive nature of the environment for students to study.
To him, a study centre without constant electricity was a big minus on the very academics which the centre was created to support adding that they were very happy to be hooked up with the national grid now.
“But we have been able to get over it because the centre was not on the national grid but we are now connected to the national supplies after almost six years of not having supplies.
” And with support from the North East Development Commission (NEDC) and the NOUN alumni association, we now have a lighted compound where students can read even in the evenings if they wish to.” Said the director.
He said that since he took charge as head of management, the student population has increased from 600 to about 1,200 and they are still counting adding that inspite of the previous instability of the city, students now operate with peace of mind with the stability of the security within the city of Maiduguri.
Above all, Prof Shani noted that he was happy with the existing relationship within the staff and students in the centre, which is ensuring that their studies are smooth.
Restriction of law from NYSC
On restriction of some courses from the National Youth Service Corp (NYSC), he hinted that no course is suffering from that syndrome.
” Whatever applies to the centre applies to the whole country and it is not just in the Maiduguri centre alone.
” But I must tell you that the undergraduate course for law has been scrapped for now and this is a decision of the National Universities Commission (NUC).
“Sadly, the previous management did not do much about ensuring that the course is properly situated and offering it doesn’t become a challenge during their time.
“However, we admit only post graduate courses in law and related courses for now. We would continue to push to get to our expected end at all cost concerning the undergraduate law program ” he concluded.
The Maiduguri study centre has operated for about 22 years defying all the threats of the lingering insurgency in Borno State.
285 Graduate From the NOUN Maiduguri Centre
News
2027: I’ll make Adamawa better with my 10-point agenda- Dr Girei
2027: I’ll make Adamawa better with my 10-point agenda- Dr Girei
Dr Salihu Girei, a former Director of Research, Development and Centre of Excellence, Tertiary Education Trust Fund (TETfund), has formally declared interest to contest the Governorship seat in Adamawa under the platform of the All Progressives Congress (APC).
Girei made his intention to govern the state known at a press conference in Yola while unveiling a 10-point agenda for the development of the state.
He said if given the mandate he would impact positively in the state especially at the grassroots.
He listed some of the agenda to include: free and quality education at the primary and secondary levels, healthcare service delivery, agriculture, women and youth empowerment, employment opportunities rural development among others.
Girei promised to provide a special salary package for teachers and 100 per cent review of pension for retirees.
He explained that he is presenting himself to the electorate to vote for in order to provide good governance, saying, he has a lot to offer towards improving the wellbeing of citizens of Adamawa State.
According to him, he contributed enormously to the development of the state and country at large for 33 years as a public administrator, and as a policy maker.
“I was Executive Chairman of Adamawa State Universal Basic Education Board, where I was privileged to transform the education landscape, especially at the basic education level.
“I built at least 5,500 classrooms record. Were able to recruit at least 17,000 teachers in four years.
“We promoted teachers that were lagging behind in promotion. We trained and retrained teachers. We did a lot in terms of supervision of teachers and schools”, he said.
He said, based on those factors, he knows Adamawa well and its challenges and has the capacity to deliver for the citizens.
“There is no ward in Adamawa that I have not been to. I’ve visited all in my capacity as Chairman of SUBEB and Commissioner for LG Affairs”, he said.
Dr Girei earlier visited the APC Secretariat to formally declare his intentions to the party Executives and congratulated them for their emergence as the new EXCO.
In his remarks, Alhaji Hamza Madagali appreciated the visit and assured the party’s readiness to conduct free, fair and credible primary elections across all political offices.
2027: I’ll make Adamawa better with my 10-point agenda- Dr Girei
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