News

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

Published

2 years ago

May 30, 2023

Ochuwa Ibrahim

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

MAN OF THE YEAR Award By THISDAY Newspapers/ARISE Media Group

Published

15 hours ago

January 22, 2025

Ochuwa Ibrahim

MAN OF THE YEAR Award By THISDAY Newspapers/ARISE Media Group

CELEBRATING PRESIDENT BOLA TINUBU

The President/Commander in Chief of the Armed Forces of the Federal Republic of Nigeria, His Excellency, Bola Tinubu, has been announced “MAN OF THE YEAR” by THISDAY Newspapers and ARISE News Board of Editors.

The prestigious recognition reaffirmed Mr. President’s exemplary leadership, visionary thinking, and unwavering commitment to transforming the country amid mounting economic and security challenges.

The awards organisers also noted that the President has marched on with courage and determination to change Nigeria for the better, and proven to be a leader who is driven more by convictions and taken decisions which are in the best interest of the nation.

To commemorate this milestone, THISDAY is unveiling a Special Edition on Monday, January 27, 2025, to afford the President’s
aides, friends, well-wishers, and associates the opportunity to share in the joy and pride that the award brings to Mr. President through placement of Congratulatory/Goodwill messages to honour the awardee among other award recipients.

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MAN OF THE YEAR Award By THISDAY Newspapers/ARISE Media Group

News

Nigeria Commiserates with Türkiye Over Devastating Fire Incident

Published

15 hours ago

January 22, 2025

Ochuwa Ibrahim

Nigeria Commiserates with Türkiye Over Devastating Fire Incident

By: Michael Mike

Nigerian government has commiserated with the government and people of Türkiye over the fire incident at the Grand Kartal Hotel in the Kartalkaya Ski Resort that resulted in the death of 66 persons injured over 50 others.

The condolence message was contained in a statement signed by the acting spokesperson of the federal ministry of foreign affairs, Kimiebi Ebienfa.

The statement read: “The Federal Republic of Nigeria wishes to express deep condolence to the Government and People of the Republic of Turkiye over the unfortunate fire incident at the Grand Kartal Hotel in the Kartalkaya Ski Resort.

“The fire, which claimed the lives of 66 persons and injured over 50 others in Bolu Province in Northwestern Turkiye, was reported to have started in the early hours of Tuesday 21st January 2025.

“The Federal Government of Nigeria sympathizes with the Government of the Republic of Turkiye and the families of the victims of the fire incident, and also wishes a speedy recovery of the injured.”

Nigeria Commiserates with Türkiye Over Devastating Fire Incident

News

Yobe’s Commitment To Agric. Development very Impressive -Islamic Development Bank

Published

17 hours ago

January 22, 2025

Ochuwa Ibrahim

Yobe’s Commitment To Agric. Development very Impressive -Islamic Development Bank

By: Mamman Mohammed

The Islamic Development Bank has expressed satisfaction with the preparedness of Yobe state government to partner the bank for an agricultural project.

Mr. Javed khan, Senior Agriculture Specialist of the Bank stated this at a courtesy call on Governor Mai Mala Buni CON, at the Government House, Damaturu.

Khan said the commitment of Yobe state government to meeting its obligations is quite impressive and encouraging.

Khan who led a team from the bank on assessment tour of the state to see for itself the documents developed and the preparations on ground for the project, said the team was convinced with government’s committment to the project.

“We were initially discouraged not to come to Yobe state citing insecurity but, we insisted on coming and are impressed with the peace and security, and the government’s commitment to the project.

“We are working towards a target in the next three months for the state to obtain approval from the bank for the project.

“The working synergy between our team and your team suggests that we will achieve our target within the stipulated time frame” Khan said.

Responding, Governor Buni commended the Bank for not listening to the enemies of progress of the state.

“l am glad you did not listen to them, some of whom have never been anywhere close to Yobe state but giving stories about what they don’t know.

“You are now here and you have seen things for yourselves and can tell the story better. We are ready for this partnership using agriculture to drive the economy of our state and the people.

“All the 17 local government areas in the state are now accessible and the people can access their farms and make this proposed project successful” Buni said.

The Governor explained the importance of agriculture to the people, adding “this project would guarantee food security and economic prosperity in our post insurgency recovery programme.

“The resilience exhibited by our people in embracing agriculture being their major preoccupation to rebuild their lives after the protracted insecurity is very encouraging and need to be supported” he said.

The Governor re-ephasized the readiness of his administration to partner the bank to make agricultural development in the state a huge success story.

Yobe’s Commitment To Agric. Development very Impressive -Islamic Development Bank