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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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Troops clear bandits’ camps, rescue victims, recover arms in Bauchi

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Troops clear bandits’ camps, rescue victims, recover arms in Bauchi

By: Zagazola Makama

Troops under Operation WUTAN DAJI have cleared several bandits’ camps, rescued kidnapped victims and recovered arms during clearance operations in Bauchi State.

Security sources said troops of 33 Artillery Brigade Garrison, in conjunction with elements of the Brigade Headquarters and a team from the Office of the National Security Adviser (ONSA), carried out the operation in Kumbodoro forest and Kumbodoro village.

According to the sources, the operation was led by the Commander, 33 Artillery Brigade, Brig.-Gen. S.S. Shehu, as part of ongoing efforts to rid the area of criminal elements.

They added that several bandits’ camps, including Azuge camps, were cleared during the operation, while a number of the criminals were neutralised.

Items recovered include four skeletal rifles, four dane guns, two pairs of boots, three helmets, a power bank, a Startimes decoder, one FN rifle magazine, one AK-47 magazine, communication links, a jackknife, six mobile phones, arrows, radio chargers, ATM cards, photographs, identity cards, as well as several pairs of security agency uniforms and leg chains.

The sources further disclosed that eight kidnapped victims were rescued during the operation.

They said troops are currently holding position within the Kumbodoro forest to consolidate gains from the clearance mission.

In a related development, the sources said troops deployed at Duguri, in collaboration with local vigilantes, recovered 36 cows at Mushen Kura village following information that the animals were roaming the area.

“The cows are suspected to have fled from bandits’ camps due to the ongoing operations and are currently in custody for further action,” the sources said.

They noted that troops’ morale and combat efficiency remain high, while operations continue to deny bandits freedom of action in the region.

Troops clear bandits’ camps, rescue victims, recover arms in Bauchi

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Joint security forces raid herders’ camp in Rivers, recover arms and ammunition

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Joint security forces raid herders’ camp in Rivers, recover arms and ammunition

By: Zagazola Makama

Joint security operatives under the Joint Task Force, South-South, Operation Delta Safe, have raided a suspected herders’ camp in Ikwerre Local Government Area of Rivers State, recovering arms and ammunition.

Security sources said the operation was carried out at about 1:30 p.m. on April 12 along the IPO community axis by troops of 6 Division Garrison in collaboration with personnel of the Air Force, Navy, Police, Department of State Services (DSS) and Civil Defence Corps.

According to the sources, the raid targeted identified herders’ and cattle rearers’ camps in the area.

They added that items recovered during the operation include one AK-47 rifle, one pump-action gun, 274 rounds of 7.62mm special ammunition and four mobile phones.

The sources noted that the operation is part of ongoing efforts to curb illegal possession of firearms and enhance security across the Niger Delta region.

Joint security forces raid herders’ camp in Rivers, recover arms and ammunition

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Zulum establishes quarry centre, procures 70 trucks for infrastructure development

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Zulum establishes quarry centre, procures 70 trucks for infrastructure development

By: Our Reporter

Borno State Governor, Professor Babagana Umara Zulum, has announced the establishment of a quarry centre in Pulka, Gwoza Local Government Area, to accelerate infrastructure development in the state.

Zulum made this announcement on Monday while flagging off the distribution of 70 brand-new Howo pickup trucks to the Ministry of Works and the State Road Maintenance Agency (BORMA) at the Government House.

The 70 Howo trucks are designed to boost the operational capacity of the Ministry of Works and its supervising agencies. The trucks will enable the swift delivery of materials to sites and faster intervention on distressed roads.

According to the governor, the quarry centre will provide locally sourced materials including granite, gravel and sharp sand to support ongoing and future road projects, reducing dependence on external suppliers and cutting costs.

“We have achieved a lot in health, education, agriculture, security, and road construction among others. However, we still have challenges of constructing roads within the state, especially in rural communities,” Zulum said.

“My administration has established a quarry plant in Pulka with a processing capacity of 120 tons per hour. The State Government spent at least 3 billion to establish the quarry plant”, he added.

According to the governor, due to the prevailing insecurity, most contractors are not willing to work in Borno.

“You know, no serious contractor will take the risk of deploying his equipment to most of the implementing areas, so this is the reason we are here”, the governor reinstated.

“So, we have no option but to strengthen the capacity of the Ministry of Works, the capacity of Borno State Road Maintenance Agency (BORMA), the capacity of special projects, monitoring departments and other MDAs that are responsible for road construction.”

The brief ceremony was attended by the Secretary to Borno State Government, Bukar Tijani, Acting Chief of Staff, Dr Babagana Mustapha Mallumbe, Permanent Secretary Ministry of Works, Engr Baware, BORMA Chairman, Engr Sadu Auno, the Special Adviser on Monitoring and Evaluation, Engr Bukar Gujubawu and other senior officials.

Zulum establishes quarry centre, procures 70 trucks for infrastructure development

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