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

Zulum pours encomium on his Mentor at 59

Published

3 hours ago

September 4, 2025

Ochuwa Ibrahim

Zulum pours encomium on his Mentor at 59

By: Bodunrin Kayode

Borno State Governor Professor Babagana Zulum has congratulated the Vice President Kashim Shettima on his attainment of 59.

In a nicely worded eulogy written by himself, the Governor described Shettima as his mentor who has given him the guidance as he continues to make life comfortable for his people in Borno state.

He commended him for his rare gift of mentorship which he maintains is the hallmark of a forthright leader who means well not only for his people in the north east but the entire Nigeria.

The Governor went on: “On behalf of myself, the Government, and the people of Borno State, I extend heartfelt birthday felicitations to His Excellency Vice President Kashim Shettima as he celebrates his 59th birthday.

“Mr Vice President, sir, your mentorship has shaped countless leaders across Borno, the Northeast, and beyond. Your leadership traits, vision, integrity, and commitment to service have guided us through challenges and inspired our generation to strive for excellence.

“Your humility remains a hallmark of truly great stewardship, reminding us that true leadership serves the people with grace and patience. Your intellectual prowess has consistently informed sound policy, strategic decisions, and thoughtful dialogue that elevates our national discourse.

“Your Excellency, I, the people of Borno, and indeed Nigeria, are immensely proud of the trajectory of your public service. From your formative years in public life as a Commissioner, to your tenure as Governor and later doubling as Chairman of the Northern Governors Forum, to your time as a Senator, and now in your capacity as Vice President, you have demonstrated a steadfast dedication to the advancement and unity of our country.

“May this birthday be a reflection of the lives you have touched and the enduring impact you continue to have. Wishing you sound health, continued wisdom, and many more years of service and national progress. Once again, Happy Birthday! Your Excellency!”

Zulum pours encomium on his Mentor at 59

News

Air power delivers decisive blow against terrorists in Sambisa, nutrialised 15

Published

3 hours ago

September 4, 2025

Ochuwa Ibrahim

Air power delivers decisive blow against terrorists in Sambisa, nutrialised 15

By: Zagazola Makama

The air component of Operation Hadin Kai has neutralised more than 15 terrorists and destroyed their structures in a precision air interdiction mission at Zuwa, a new hideout in the Sambisa general area of Borno State.

Zagazola Makama gathered that the operation, carried out on Sept. 3 at about 11:50 a.m., followed credible intelligence which tracked terrorists fleeing after sustained ground operations in the Bitta axis in July.

According to competent sources, ISR missions conducted by Grey Raptor platforms established the withdrawal route of the terrorists along a river line extending from Bitta towards Zuwa.

The sources said “Overhead the West of Zuwa, our crew observed active terrorist structures with several fighters wearing ISWAP uniforms. It was evident the location had become a major concentration point.

“Consequently, the air component executed multiple attack passes with precision-guided stores against the identified structures, which were occupied by a large concentration of terrorists,” the sources said.

The sources explained that the strikes achieved their desired effect, as over 15 terrorists were neutralised and the structures destroyed completely.

The sources added that the operation was a direct follow-on to the July 28 encounter with ground troops in Bitta, where several terrorists were dislodged.

The sources reiterated the commitment of the troops of Operation HADIN KAI and its Air Component to sustain close air support, reconnaissance, and precision strike operations in synergy with surface forces until terrorism is completely defeated in the North East.

Recalled that Nigerian military, through Operation Hadin Kai, has intensified its coordinated operations across the North East, targeting remnants of Boko Haram and ISWAP insurgents still hiding in the Sambisa and Mandara mountains.

Air power delivers decisive blow against terrorists in Sambisa, nutrialised 15

News

Zulum leads N/East govs to Tinubu, requests completion of 17 roads, oil exploration

Published

4 hours ago

September 4, 2025

Ochuwa Ibrahim

Zulum leads N/East govs to Tinubu, requests completion of 17 roads, oil exploration

By: Our Reporter

Borno State Governor, Babagana Umara Zulum, led a delegation of North East governors to meet with President Bola Ahmed Tinubu on Wednesday.

The meeting, held at the Presidential Villa in Abuja, focused on critical issues affecting the North East, including urgent completion of 17 vital road projects and the resumption of oil exploration in the frontier wells, particularly the Kolmani and Lake Chad wells.

Other governors in attendance included Muhammadu Inuwa Yahaya of Gombe, Bala Muhammad of Bauchi, Mai Mala Buni of Yobe, Ahmadu Umaru Fintiri of Adamawa and Agbu Keffas of Taraba.

Delivering his address during the meeting, Zulum, who is also the chairman of the North East Governors Forum, urged the president to complete the ongoing road projects and build critical roads connecting the six states of the zone.

The roads are Kano-Maiduguri Road, Port Harcourt-Jos-Bauchi-Maiduguri Railway line, Bama-Mubi-Yola Road, Wukari-Jalingo-Yola Road, Duguri-Mansur Road (NNPC Project Ongoing), Bauchi-Gombe-Biu-Damaturu Road, Damaturu-Geidam Road, Bauchi-Ningi-Nasaru-Babaldo Road and Gombe-Potiskum, Damaturu-Biu Roads.

Others include Alkaleri-Futuk Road, Maiduguri-Damboa-Yola Road, Gombe-Dukku-Darazo Road, Biu-Gombe Road, Ibi-Shamdam Road, Maiduguri-Monguno-Baga Road and Maiduguri-Ngala-Bama-Banki Roads

Governor Zulum commended the president for the commitment to restoring peace within the northeast, stating, “We thank you for fostering peace and stability within the sub-region and continuing with the initiative of your predecessor in sustaining the fight against insurgency.

He assured the president of their commitment to his administration’s initiative on training of manpower and providing technology with a view to reversing the insecurity facing the North East.

“We are fully aligning with Mr. President’s good initiative of training of manpower and providing technology with a view to reversing the ugly trend in the forest, thereby reducing the insurgency and promoting agricultural development in alignment with the renewed hope agenda on food security,” Zulum said.

He added, “Mr President, the North East governors hold you in high esteem and all of us have resolved to partner with you in your determination to provide good governance for Nigeria with a view to leaving behind lasting legacies and landmarks for the country.”

Responding, President Tinubu acknowledged the governors’ concerns and assured them of his administration’s commitment to addressing the developmental needs of the northeast.

Zulum leads N/East govs to Tinubu, requests completion of 17 roads, oil exploration