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

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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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Troops arrest suspected ISWAP informant in Gombi, Adamawa

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Troops arrest suspected ISWAP informant in Gombi, Adamawa

By: Zagazola Makama

Troops of the Joint Task Force (JTF) Operation HADIN KAI, in conjunction with Civilian Hunters and the Vigilante Group of Nigeria, have arrested a suspected informant of the Islamic State West Africa Province (ISWAP) and Boko Haram Terrorists (BHT) in Gombi.

The suspect, identified as Abdullahi Umar, 25, a native of Gwoza, was apprehended on March 23 following credible intelligence on the presence of ISWAP elements within the 232 Battalion Tactical Area of Responsibility.

Preliminary investigations revealed that Umar was tasked with conducting reconnaissance along routes leading to the 232 Battalion general area and military structures, with the aim of identifying suitable entry points for future attacks.

The suspect also confessed to involvement in the recent attack on troops in Ngoshe.

Umar is currently in the custody of troops for further investigation and necessary action

Troops arrest suspected ISWAP informant in Gombi, Adamawa

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Over 930, 000 persons benefit from ACReSAL Projects in Gombe

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Over 930, 000 persons benefit from ACReSAL Projects in Gombe

Mr Mohammed Fawu, the Gombe State Commissioner of Water, Environment and Forest Resources, has stated that no fewer than 930,162 persons across the state have benefitted from the implementation of the World-Bank-funded Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project in the state within the past three years

Fawu stated this in Gombe on Monday while declaring open a four-day training of enumerators for ACReSAL Third Party Assessment.

Fawu stated that Gombe State has within the three years received disbursements amounting to $27.51 million for the implementation of the project which had impacted positively on the lives of residents.

He said that the projects so far implemented have contributed to combating land degradation, erosion, and climate change while improving on the lives of persons living around communities were projects were executed.

“Gombe State has advanced a wide range of landscape and community-level interventions, including: establishment of 313 hectares of woodlot plantation.

“Upgrading of Kanawa Forest into a biosphere resort and botanical garden, indigenous tree plantations and roadside shelterbelts spanning 110 kilometres.

“Canalization of Balanga Dam irrigation channels covering 6,329 hectares provision of 250 wash boreholes to support irrigation farming.

“ At the community level, we have distributed clean cook stoves to 3,000 households, provided rainwater harvesting facilities to 1,000 households and institutions, and supplied drought-tolerant seeds to 10,000 farmers.

“Solar-powered irrigation schemes, borehole drilling, and Community Revolving Fund activities are ongoing, supporting agro-processing, livestock, and farm enterprise development,” he said.

He added that ACReSAL has strengthened smart agricultural practices through the establishment a farm centre dedicated to training and research.

Fawu commended the partnership between the Gombe State government and World Bank, which he said has impacted several sectors while improving the livelihoods of residents of Gombe State.

On his part, Dr Sani Jauro, the Gombe State ACReSAL Project coordinator said that no fewer than 220 enumerators drawn from the 19 Northern States and the Federal Capital Territory were being trained.

Jauro said that the third-party assessment would ensure unbiased review of the projects so far implemented by ACReSAL from independent party.

He said the assessment was part of the procedure of ACReSAL project implementation meant to review the progress and challenges of the projects by enumerators who are not involved in the day-to-day running of ACReSAL projects.

Jauro urged the enumerators to carry out their jobs with fairness and be just in their report, adding that “the credibility of the exercise lies on your shoulder.”

On her part, the World Bank Task Team Leader, Dr. Joy Agene who was represented by Mr Joseph Abang, Operations Officer with World Bank said the assessment would unravel what has changed since the commencement of the implementation of the project.

Agene urged the enumerators to be steadfast and report accurately in line with the essence of the exercise.

Over 930, 000 persons benefit from ACReSAL Projects in Gombe

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Police repel attack during attempt to arrest suspected bandit leader, one killed in Kano

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Police repel attack during attempt to arrest suspected bandit leader, one killed in Kano

By; Zagazola Makama

The Police Command in Kano State has repelled an attack on its personnel during an operation to arrest a suspected bandit leader in Bichi Local Government Area.

Security sources told Zagazola Makama that the incident occurred at about 6:30 p.m. on March 22, following a distress call from Tudun Wulli Outpost.

According to the sources, a team of the Anti-Kidnapping Squad, led by ASP Abubakar Musa, acted on credible intelligence and trailed a suspected bandit leader identified as Muhammad, also known as “Senator” or “Kirchi,” who had reportedly visited Tudun Wulli village for Sallah celebrations.

“The suspect was sighted in possession of an AK-47 rifle, but upon attempt to apprehend him, he fled into a crowd,” the source said.

The situation escalated when a mob allegedly attacked the police team with stones and other dangerous weapons, injuring ASP Lawali Hamidu and damaging the windscreen of a patrol vehicle.

“In the process of tactical withdrawal, four persons sustained gunshot injuries and were rushed to General Hospital, Bichi, for treatment,” the source added.

One of the victims, identified as Halima Saidu, was later confirmed dead by a medical doctor, while the others are responding to treatment.

The police personnel involved in the operation were safely evacuated, and additional security deployments have been made to the area to forestall further breakdown of law and order.

The command said the situation has been brought under control, adding that investigations are ongoing, while efforts are being intensified to apprehend the fleeing suspect.

Police repel attack during attempt to arrest suspected bandit leader, one killed in Kano

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