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

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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

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Zulum Receives Seven Ambassadors, UN Officials on Humanitarian Visit to Maiduguri

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Zulum Receives Seven Ambassadors, UN Officials on Humanitarian Visit to Maiduguri

By: Michael Mike

Borno State Governor, Prof. Babagana Zulum has received ambassadors from seven countries alongside senior United Nations and federal government officials during a high-level humanitarian visit to Maiduguri.

The visiting diplomats represented India, Egypt, Indonesia, the Philippines, Turkey, Malaysia and Qatar. They were accompanied by the United Nations Resident and Humanitarian Coordinator in Nigeria, Mohamed Fall, and the Minister of Humanitarian Affairs and Poverty Alleviation, Bernard Doro.

The visit was organised to give the international partners an opportunity to directly assess the humanitarian situation in Borno State and observe ongoing recovery and development efforts following years of conflict.

During the visit on Tuesday, the delegation was taken on a tour of key projects implemented by the Zulum administration in the areas of education, healthcare and human capital development. The tour was led by the Acting Governor of the state, Umar Usman Kadafur.

Addressing journalists after the tour, the UN Resident and Humanitarian Coordinator praised Governor Zulum for what he described as visible and impactful infrastructure development across the state. He noted that the projects showcased a different narrative from the usual focus on security challenges in the region.

According to Fall, initiatives in education, vocational skills training, girl-child education and malnutrition treatment demonstrate deliberate efforts to improve the lives of residents and address the underlying causes of the humanitarian crisis. He stressed that sustained investment in education remains critical to long-term peace and development in the state.

Also speaking, the Minister of Humanitarian Affairs and Poverty Alleviation expressed satisfaction with the level of progress recorded in Borno despite more than a decade of conflict. He commended the governor’s leadership, describing the facilities visited as practical tools for empowering residents and lifting them out of poverty.

The minister added that the vocational centres, comprehensive schools and other social infrastructure reflect a strong commitment to recovery, resilience and inclusive development in the state.

Zulum Receives Seven Ambassadors, UN Officials on Humanitarian Visit to Maiduguri

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Reckless police teargas firing sparks fire outbreak in Katsina cement shop

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Reckless police teargas firing sparks fire outbreak in Katsina cement shop

By: Zagazola Makama

A routine police patrol in Katsina State on Monday degenerated into a fire incident after officers recklessly fired teargas into a cement shop, causing a blaze and injuring a trailer driver in Charanchi Local Government Area.

Zagazola Makama learnt that the incident occurred at about 6:00 p.m. on Feb. 2, when personnel attached to the Malumfashi Division intercepted an unregistered cement trailer while returning from special duty en route from Katsina to Malumfashi.

Witnesses said that instead of handling the traffic offence with restraint, the patrol team fired teargas, which strayed into a nearby cement shop owned by Umar Abdullahi, and ignited a fire.

“The teargas landed inside the shop and immediately started a fire. People ran out in panic. We had to struggle to put it out,” a resident said.

The fire destroyed some goods before it was eventually extinguished by residents and emergency responders.

The trailer driver, Gambo Abdurrahman, of Gidan Dawa, Katsina, also sustained a fracture on his right leg during the incident. He was rushed to General Hospital, Kankia, and later referred to an Orthopaedic Hospital for specialist treatment.

Police sources confirmed that the situation had been brought under control and that the officers involved had been defaulted for disciplinary action.

“The Command has ordered a full investigation into the reckless use of teargas that led to the fire outbreak and injury. Appropriate sanctions will follow,” a senior officer said.

Reckless police teargas firing sparks fire outbreak in Katsina cement shop

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Terrorists kill scores in Kwara village attack – lawmaker

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Terrorists kill scores in Kwara village attack – lawmaker

By: Zagazola Makama

Scores of persons were killed in a terrorist attack on Woro Village in Kaiama Local Government Area of Kwara State, the lawmaker representing Kaiama in the State House of Assembly, Hon. Saidu Baba Ahmed, has confirmed.

Ahmed who disclosed this on Wednesday said that the death toll had risen to 35 as of this morning, while many residents were still missing in the surrounding bush after fleeing the community during the attack.

“I’m on my way to Woro where the mayhem took place yesterday, along with a detachment of soldiers from Ilorin. I have also been informed that other soldiers are following the attackers. I’m glad to say that I spoke with the Emir this morning and he is alive,” he said.

Security sources said the attack occurred on Feb. 3 at about 7:07 p.m., when terrorists suspected to be Boko Haram Jama’atu Ahlis Sunna Lidda’awati wal-Jihad (JAS) stormed Woro, setting houses and shops ablaze as residents fled in panic.

The assailants reportedly withdrew after spotting an approaching aircraft, but intelligence indicates they may still be lurking nearby and could attempt to return once security pressure eases.

Meanwhile, security sources warned that terrorist operations are escalating across the North-West and North-Central, with attacks spreading into border communities with the Republic of Benin, particularly in Kwara and Niger States.

The sources noted that terrorists infiltrating from the Sahel axis have merged with local criminal groups. Two major groups – JNIM/AQIM and IS Sahel are said to be competing for territory, using forest corridors and borderlands as launch pads for further attacks.

While parts of the North-West face encroachment from ISIS-linked elements along Niger’s borders with Sokoto and Kebbi, JNIM’s operations reportedly stretch from the W–Arly–Pendjari (WAP) Forest Complex into Benin, diverting into North-Central Nigeria.

Zagazola stressed that containing the threat requires strong regional cooperation, describing the violence as part of a wider Sahelian security crisis rather than an isolated state-level problem.

Terrorists kill scores in Kwara village attack – lawmaker

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