Connect with us

News

MR. PRESIDENT; WITHHOLD ASSENT TO THE AMENDMENT OF THE CENTRAL BANK OF NIGERIA ACT

Published

on

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

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Troops Intervene in Farm Destruction Incident in Plateau, Move for Peaceful Resolution

Published

on

Troops Intervene in Farm Destruction Incident in Plateau, Move for Peaceful Resolution

By Zagazola Makama

Troops of Operation Safe Haven have intervened in a reported farm destruction incident in Lamingo village, Jos East Local Government Area of Plateau State.

Security sources said the incident occurred at about 5:10 a.m. on May 3 when troops of Sector 1 (Sub-Sector 12), Lamingo, responded to a distress report of cattle grazing within the compound of one Mrs. Shittu Yakubu.

The sources disclosed that upon arrival, the troops intercepted the cattle, while the herder fled the scene on sighting security personnel.

According to the sources, the owner of the cattle, identified as Alhaji Mamuda Ibrahim, has since been contacted to facilitate an amicable resolution of the incident.

They added that the situation was brought under control without further escalation.

The sources noted that efforts are ongoing to strengthen community engagement and prevent recurrence of similar incidents in the area.

Troops Intervene in Farm Destruction Incident in Plateau, Move for Peaceful Resolution

Continue Reading

News

Troops Rescue Five Kidnap Victims in Kogi After Pursuit of Abductors

Published

on

Troops Rescue Five Kidnap Victims in Kogi After Pursuit of Abductors

By Zagazola Makama

Troops of the Nigerian Army have rescued five kidnapped victims following a swift response to a kidnap incident along the Okpella–Okene Road in Okene Local Government Area of Kogi State.

Security sources said the operation was carried out at about 12:43 a.m. on May 3 by troops of 195 Battalion (Reinforced) deployed at Forward Operating Base Okpella.

The sources disclosed that the troops, while on night patrol, responded to a distress call indicating that a vehicle had been attacked and its occupants abducted.

According to the sources, the troops immediately pursued the kidnappers, forcing them to abandon the victims and flee into the surrounding bush.

They added that five victims were successfully rescued during the operation, while two of them sustained injuries.

The injured victims were evacuated to the ENAW Dialysis Centre for medical attention, while others were stabilised.

The sources noted that follow-up operations are ongoing to track down the fleeing suspects and prevent further criminal activities along the axis.

Troops Rescue Five Kidnap Victims in Kogi After Pursuit of Abductors

Continue Reading

News

Where Justice Mark Chidiebere Crossed the Line

Published

on

Where Justice Mark Chidiebere Crossed the Line

By Zagazola Makama

The recent arrest and handover of Justice Mark Chidiebere, popularly known as Justice Crack, to the Department of Security Services has sparked predictable debates about free speech, accountability, and the limits of online activism. But beneath the noise lies a more serious issue one that goes beyond blogging and into the sensitive terrain of national security.

From available details, the turning point was not mere criticism of the military. Democracies tolerate, and even benefit from, scrutiny of their institutions. The red line appears to have been crossed when private conversations between the blogger and serving soldiers suggested alignment around “change of government.” In any country, that phrase, especially when involving active-duty personnel is not taken lightly. No professional military, whether in Nigeria or elsewhere, would ignore such signals once credible evidence emerges.

The Nigerian Army’s response, therefore, should be viewed through that lens. This is an institution that has, in recent months, remained alert to internal and external threats, including failed attempts by rogue elements to destabilise the system. When a civilian is perceived rightly or wrongly to be encouraging disaffection or coercing soldiers within the ranks, it triggers an entirely different category of concern. At that point, it is no longer about opinion, it becomes a question of discipline, cohesion, and national stability.

This is where many content creators must draw a hard lesson. The digital space is not a vacuum. Conversations especially with uniformed personnel carry consequences. Amplifying unverified allegations, engaging soldiers in sensitive political discussions, or projecting narratives that could be interpreted as incitement can quickly move from advocacy into dangerous territory. The line is not always visible, but it is very real.

There is also the broader issue of responsibility. Too often, fragments of internal grievances are pushed into the public domain without context or verification, feeding a cycle where the military is portrayed only through its shortcomings. While criticism is legitimate, a pattern of reckless amplification erodes public confidence and, more importantly, can embolden hostile actors who thrive on internal discord.

If indeed the conversations attributed to Justice Mark Chidiebere reflect attempts to influence serving soldiers toward political ends, then the response by authorities was not just expected; it was inevitable.

What we must all know is that freedom of expression does not extend to actions that could undermine the stability of the state. In an era where a single message can travel faster than any bullet, knowing where the line is and choosing not to cross it has never been more important.

Where Justice Mark Chidiebere Crossed the Line

Continue Reading

Trending

Verified by MonsterInsights