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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
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Military Airstrikes neutralized ISWAP Commanders, others in precision strike on Sambisa hideouts
Military Airstrikes neutralized ISWAP Commanders, others in precision strike on Sambisa hideouts
By: Zagazola Makama
The Air Component of Operation Hadin Kai has neutralised two senior terrorist commanders, Saddam and Saleh Garin Kago, alongside other fighters, in a precision air interdiction (AI) mission at Yuwe in the Sambisa general area of Borno.
Sources who disclosed this to Zagazola said that the early morning strike also eliminated Hussaini Ubaida and Ba Alayi Benbem, while destroying identified terrorist command hideouts and logistics warehouses.
The sources said the mission was executed at about 6:08 a.m. on Friday following confirmatory Intelligence, Surveillance and Reconnaissance (ISR) on structures suspected to be terrorists’ commanders’ hideouts and storage facilities within the Yuwe axis.
“Upon confirmation of the targets, various military aircraft and platform, departed base to prosecute the mission. On reaching the objective area, the aircraft acquired and engaged the selected targets with precision-guided stores onboard,” he said.
The sources noted that post-strike battle damage assessment indicated that the identified command hubs and warehouses were effectively destroyed, significantly degrading the operational capacity of the terrorists in the Sambisa corridor.
According to the source, efforts were ongoing to confirm the identities of additional casualties resulting from the strike.
The military high command of Operation Hadin Kai has reaffirmed its commitment to sustain intelligence-driven operations aimed at dismantling terrorist leadership structures, disrupting supply chains and denying insurgents safe havens.
They stressed that the theartre command will continue to work in synergy with the Air component and other security agencies, to intensify its operations to consolidate recent gains and restore lasting peace in the North-East.
Military Airstrikes neutralized ISWAP Commanders, others in precision strike on Sambisa hideouts
News
Four die, 18 injured in zakkat distribution stampede in Katsina
Four die, 18 injured in zakkat distribution stampede in Katsina
By: Zagazola Makama
Four persons have died while 18 others sustained injuries following a stampede during the distribution of annual Ramadan Zakkat (alms) at a residence in Katsina metropolis.
Sources told Zagazola that the incident occurred at about 9:00 p.m. on Feb. 26 at the residence of Alhaji Dahiru Usman Sarki, located in Kofar Guga Quarters.
According to the sources, a large crowd had gathered at the residence to receive Ramadan alms when some individuals allegedly forced their way into the compound, triggering a stampede.
The Divisional Police Officer (DPO), Central Police Station (CPS) Katsina, swiftly mobilised to the scene and was able to bring the situation under control.
As a result of the stampede, 18 persons sustained varying degrees of injuries and were rushed to the General Hospital, Katsina, for medical attention.
Four persons were later certified dead by a medical doctor. They were identified as Bilkisu Mamman, 40, of Kerau Quarters; Ihsan Musbahu, 40, of Abattoir Quarters; Aisha Sani, 16, of Kofar Sauri Quarters; and Salamatu Kabir, 45, of Sabuwar Unguwa Quarters.
Another victim, Hafsat Zubairu, 15, of Masanawa Quarters, was referred to the Federal Teaching Hospital for further medical evaluation.
Police authorities said the organisers of the Zakkat distribution had been invited for questioning, while investigation into the incident was ongoing.
Four die, 18 injured in zakkat distribution stampede in Katsina
News
Troops neutralise terrorists’ structures, arrest two logistics suppliers in Sabon Garin Fishingo in Borno
Troops neutralise terrorists’ structures, arrest two logistics suppliers in Sabon Garin Fishingo in Borno
By: Zagazola Makama
Troops of Operation Hadin Kai, Sector 2, have destroyed terrorist life-support structures and arrested two suspected Boko Haram logistics suppliers during clearance operations around Sabon Gari Fishingo in Borno State.
Security sources told Zagazola that the troops, in conjunction with quasi-security forces, conducted the operation at about 8:30 p.m. on Feb. 28.

The troops reportedly made contact with terrorists at Kayawa and engaged them with superior firepower, forcing the insurgents to flee in disarray.
The fleeing terrorists abandoned two motorcycles and five bicycles at the scene. No casualty was recorded among the troops.
Following the encounter, the troops set ablaze structures believed to be used as life-support bases by the terrorists.
The operation later extended to Sabon Gari Fishingo, where troops conducted a cordon-and-search exercise.

During the operation, two suspected Boko Haram logistics suppliers identified as Dahiru Haruna and Salele Lawali were arrested.
Items recovered from the suspects included a large quantity of drugs, medical consumables and one tricycle, popularly known as “Jega.”
Sources said the suspects were in custody for further investigation, while the recovered items were being documented.

The operation is part of sustained offensive actions under Operation Desert Sanity aimed at dismantling terrorist enclaves and disrupting their logistics networks in the North-East.
Troops neutralise terrorists’ structures, arrest two logistics suppliers in Sabon Garin Fishingo in Borno
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