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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
News
Gombe police launch investigation after clash at wedding leaves one dead
Gombe police launch investigation after clash at wedding leaves one dead
By: Zagazola Makama
Police in Gombe State have commenced investigation following a deadly clash during a wedding send-off party in Tulmi, Akko Local Government Area, which left one person dead and others injured.
According to a sources, the incident occurred on Feb. 1, 2026, at about 10:30 p.m., when a group of men identified as Wada Hussaini, Ganji Alhaji Idi, Yaya Hussaini, Mohammed Maikudi, Bello Alhaji Idi, and one Tijjani, all from Garin Ardo Usman village, reportedly clashed with Abubakar Usman, 35, and Bello Adamu, 19, at the wedding organized by Godiya Mai Rai.
The confrontation resulted in serious injuries to Abubakar Usman, Bello Adamu, and Wada Hussaini. The injured were rushed to Cottage Hospital Tumu for treatment, but Abubakar Usman was confirmed dead. His corpse has been deposited at the hospital’s mortuary.
The suspects fled the scene following the incident, and police said efforts are ongoing to apprehend them. Investigation into the case has commenced.
Gombe police launch investigation after clash at wedding leaves one dead
News
Two children drown in Bauchi river, police investigate
Two children drown in Bauchi river, police investigate
By: Zagazola Makama
Two children drowned while swimming in a river on the outskirts of Bauchi metropolis, Bauchi State, police said.
According to sources, the victims, Saminu Mohammed, 12, and Tanimu Danladi, 11, both of Gudum Sayawa, went to a river in the area on Feb. 2, 2026, at about 4:30 p.m., when the incident occurred.
Police personnel swiftly moved to the scene, evacuated the children, and conveyed them to the Specialist Hospital, Bauchi, where they were certified dead by a medical practitioner.
Their remains were later released to their relatives for burial, while investigation into the incident continues.
Two children drown in Bauchi river, police investigate
News
Sokoto police arrest suspected bandits’ informants, financiers, recover rustled cows
Sokoto police arrest suspected bandits’ informants, financiers, recover rustled cows
By: Zagazola Makama
Sokoto State Police Command, in collaboration with the Community Guard, has arrested suspected bandits’ informants and financiers and recovered seven rustled cows along with a motorcycle.
Sources said that on Feb. 2, 2026, at about 1:00 a.m., operatives acting on credible intelligence swooped on Sarma Village in Tangaza Local Government Area, arresting two suspects, Nura Dan Haruna, 20, and Buhari Salah, 18, found in possession of seven stolen cows and a motorcycle without registration number.
The suspects reportedly confessed that they had been sent by Abdullahi Gulum and Dan Iko, both at large, to deliver the cows to Hamza Ibrahim, 56, of Kara Area, Illela, who has also been arrested.
Hamza reportedly admitted that he sold two of the cows last month to Abubakar Muhammad, 31, of Gwadabawa LGA, who was subsequently taken into custody.
Police confirmed that investigation is ongoing, and efforts are being intensified to apprehend the remaining suspects.
Sokoto police arrest suspected bandits’ informants, financiers, recover rustled cows
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