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

Zulum Visits Frontline Troops in Mairari, Inspects Dilapidated FGC Monguno

Published

on

Zulum Visits Frontline Troops in Mairari, Inspects Dilapidated FGC Monguno

By: Our Reporter

Borno State Governor, Professor Babagana Umara Zulum, on Tuesday, visited the Forward Operating Base (FOB) in Mairari to bolster the morale of troops on the frontline.

Mairari, a strategic town in the state, endured two insurgent attacks in December. On both occasions, the assaults were successfully repelled by troops, averting a significant security breach.

Governor Zulum, who is currently on a resilience-building tour of Northern Borno, commended the officers and men for their bravery and sacrifice, describing them as the backbone of peace and stability in the state.

“Your resilience and commitment inspire confidence in our people,” the Governor stated. “I want to assure you that my administration will continue to provide all necessary logistics and welfare support to boost your morale and enhance your operational effectiveness. Mairari will not fall.”

He emphasised that the state government, in collaboration with the Federal Government and military high command, would ensure a steady supply of operational logistics, mobility support, and welfare packages to keep troops combat-ready.

The Commander of Sector 3, Operation Hadin Kai, Major General Suleiman Saidu Tilawan, commended the Governor for his consistent and proactive support.

“The support we receive from the Borno State Government and the Theatre Commander has been exceptional,” he said. “It has translated into improved logistics, enhanced morale, and renewed confidence among our troops to confront threats head-on.”

Governor Zulum also interacted with residents of Mairari, listening to their concerns and commending their courage. He described the community as a symbol of resilience and announced cash assistance to those affected by the recent attacks to ease hardships and support recovery.

…Zulum Inspects Dilapidated FGC Monguno

Earlier in the day, Governor Zulum conducted an inspection of the abandoned Federal Government College in Monguno.

He assessed extensively damaged classrooms, vandalized laboratories, and deteriorating staff quarters, tangible reminders of the insurgency’s impact on public institutions.

The Governor said the purpose of the visit was to assess the damage and identify practical steps for the college’s full rehabilitation. “Education is the foundation upon which any peaceful, prosperous, and resilient society is built,” Governor Zulum stressed. “Rebuilding schools is central to the long-term recovery and stability of our dear state.”

He assured that his administration would spare no effort in restoring the school, with the ultimate goal of ensuring children from Monguno and neighbouring communities can access quality education.

During the inspection, Governor Zulum encountered widows who are taken refuge in some of the abandoned structures and provided them with cash assistance and facilitated the admission of some of their qualified daughters into the Monguno College of Nursing and Midwifery, offering them a pathway to education and future self-reliance.

Zulum Visits Frontline Troops in Mairari, Inspects Dilapidated FGC Monguno

Continue Reading

News

Yuletide: NSCDC Deploys 55,000 Operatives Nationwide, Intensifies Intelligence to Tackle Insecurity

Published

on

Yuletide: NSCDC Deploys 55,000 Operatives Nationwide, Intensifies Intelligence to Tackle Insecurity

By: Michael Mike

The Nigeria Security and Civil Defence Corps (NSCDC) has deployed over 55,000 operatives across the country to ensure public safety and protect critical national assets and infrastructure during the Christmas and New Year festivities.

The Commandant General of the Corps, Prof. Ahmed Audi, ordered the nationwide deployment as part of measures to strengthen the nation’s security architecture before, during and after the yuletide period.

Audi said the decision became imperative in view of the tendency of criminal elements to exploit festive periods to carry out acts of banditry, kidnapping, terrorism, insurgency and other crimes.

He stressed that many security threats could be effectively curtailed if citizens embraced the culture of providing credible and timely intelligence to security agencies. According to him, proactive intelligence-sharing would aid early intervention and lead to the arrest of individuals who pose threats to national security.

“To prevent crimes rather than react to them, it is imperative for members of the public to trust and collaborate with us by providing credible and timely information that will enable swift action,” the NSCDC boss said.

Audi directed Zonal Commanders to closely monitor formations under their jurisdiction, while State Commandants are to coordinate Area Commands, Divisional Offices and other operational units to ensure effective coverage.

He explained that the deployment involves both covert and overt operations, with full mobilisation of personnel aimed at guaranteeing maximum human security and safeguarding government assets nationwide.

Reaffirming the Corps’ commitment to national peace and stability, the NSCDC helmsman assured Nigerians of enhanced collaboration with sister security agencies to ensure a safe environment conducive to development.

He said: “Our unwavering commitment is to ensure a safe and secure environment, and this can only be achieved with the active support of the public.”

The assurance was contained in a statement signed by the National Public Relations Officer of the Corps, Afolabi Babawale.

Yuletide: NSCDC Deploys 55,000 Operatives Nationwide, Intensifies Intelligence to Tackle Insecurity

Continue Reading

News

Military arrest policemen on VIP escort duty in violation of President Tinubu’s directive

Published

on

Military arrest policemen on VIP escort duty in violation of President Tinubu’s directive

By: Zagazola Makama

The military has arrested four police officers for allegedly providing unauthorised escort services to a VIP in contravention of the presidential directive on the withdrawal of policemen from VIP protection duties.

Police sources told Zagazola Makama that the arrest occurred on Dec. 17 at about 9:30 a.m., while the officers were reportedly on escort duty.

Those arrested were identified as ASP Musa Waziri and Insp. Jeremiah Achimogu both attached to 45 Police Mobile Force (PMF), Abuja; Insp. Awipi Terry of 21 PMF; and Insp. Hassan Baba of 50 PMF, Abuja.

According to security sources, the officers were arrested by military personnel after allegedly flouting the presidential order withdrawing police personnel from VIP escort duties.

The sources further disclosed that the policemen were dressed in uniforms similar to that of the Nigeria Security and Civil Defence Corps (NSCDC), allegedly in an attempt to evade detection and deceive enforcement personnel.

The arrested officers have since been detained, while disciplinary procedures have been initiated against them in line with extant regulations.

The Federal Government had earlier directed the immediate withdrawal of police personnel from unauthorised VIP protection duties to redeploy manpower to core policing and internal security operations across the country.

Military arrest policemen on VIP escort duty in violation of President Tinubu’s directive

Continue Reading

Trending

Verified by MonsterInsights