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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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Zulum meets NPA’s mgt in Lagos, wants Borno’s export capabilities scaled up

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Zulum meets NPA’s mgt in Lagos, wants Borno’s export capabilities scaled up

By: Michael Mike

Borno State Governor, Professor Babagana Zulum, met with the management of the Nigerian Ports Authority (NPA) in Lagos on Tuesday during which he discussed opportunities for his state’s local creators to link into the value chain.

Zulum’s administration, since 2019, has pushed to diversify Borno’s economy while also creating a conducive environment for business and investment.

The governor, who was received by the Managing Director/Chief Executive Officer of the NPA, Dr Abubakar Dantsoho, alongside Executive Director, Engr. Ibrahim Abba Umar, had paid a similar high-level visit to the Nigerian Shippers’ Council (NSC) last year.

At the NSC meeting, Zulum had pushed for the fast-tracking of the Maiduguri Dry Inland Port; a landmark project designed to bring port services closer to the northeast. 

Once operational, the dry port will create thousands of jobs, generate significant internal revenue and boost Borno’s overall economic activity by reducing logistics costs and decongesting coastal ports.

In a related development, Zulum’s administration is also working to fully establish the African Continental Free Trade Area (AfCFTA) in Banki, a border town neighbouring the Republic of Cameroon, with the process already at an advanced stage.

By simultaneously advancing the Dry Inland Port in Maiduguri and the Free Trade Zone in Banki, Zulum is putting in place a coherent strategy to industrialise Borno, create jobs, generate revenue and permanently shift the state’s economy away from over-reliance on monthly federal allocations.

Zulum meets NPA’s mgt in Lagos, wants Borno’s export capabilities scaled up

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APC Backs Tegbe for Power Reforms, Cites Proven Expertise, Strategic Leadership

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APC Backs Tegbe for Power Reforms, Cites Proven Expertise, Strategic Leadership

By: Michael Mike

The All Progressives Congress (APC) in Oyo State has hailed the nomination of Chief Joseph Olasunkanmi Tegbe as Nigeria’s Minister of Power, describing it as a timely move amid the country’s persistent electricity challenges.

In a statement issued in Ibadan, the party’s state leadership said Tegbe’s selection reflects both merit and the urgent need for competent leadership in the nation’s power sector.

The statement, jointly signed by State Chairman Chief Moses Adeyemo Alake and State Secretary Hon. Fatai Adesina, expressed strong confidence in Tegbe’s ability to drive meaningful reforms, citing his extensive professional background and policy experience.

Tegbe, an engineer and seasoned policy strategist, brings over three decades of experience spanning engineering, consulting, and public sector advisory.

He previously served as Director-General of the Nigeria–China Strategic Partnership, where he coordinated bilateral development initiatives and investment engagements between both countries.

He also chaired the National Tax Policy Implementation Committee, playing a key role in advancing Nigeria’s fiscal reform agenda and strengthening revenue frameworks.

Before transitioning fully into public service, Tegbe built a distinguished career at KPMG, rising to become Senior Partner and Head of Advisory Services in Africa. In that role, he led major engagements on governance reforms, economic policy, institutional transformation, and investment strategy across both public and private sectors.

Earlier in his career, he worked with Shell Petroleum Development Company, gaining experience in corporate operations and resource management.

Academically, Tegbe holds a first-class degree in Civil Engineering from Obafemi Awolowo University and has attended executive programmes at globally renowned institutions including Harvard and INSEAD, further reinforcing his technical and leadership credentials.

The APC noted that this blend of technical expertise and policy leadership positions him to tackle longstanding challenges in power generation, transmission, and distribution.

“The APC in Oyo State is confident that Chief Tegbe will bring innovation, efficiency, and sustainable solutions to Nigeria’s power sector. His history of performance and commitment to service positions him to make meaningful contributions to national development,” the statement read.

The party emphasized that Nigeria is at a critical stage where strategic direction is essential to unlock sustainable energy solutions, noting that Tegbe’s leadership could help reposition the sector for improved performance.

It added that the APC in Oyo would offer its full support while maintaining constructive engagement with the minister-designate and other stakeholders to ensure progress.

The statement also acknowledged Tegbe’s longstanding contributions to the growth of the party in the state, expressing optimism that his new role would further deepen his commitment to national development.

The APC wished him a successful tenure, expressing hope that his leadership would mark a significant shift toward stable and reliable electricity supply across the country.

APC Backs Tegbe for Power Reforms, Cites Proven Expertise, Strategic Leadership

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Nigeria Convenes African Leaders on Climate-Conflict Nexus, Pushes Peace-Centred Adaptation Strategy

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Nigeria Convenes African Leaders on Climate-Conflict Nexus, Pushes Peace-Centred Adaptation Strategy

By: Michael Mike

Nigeria has brought together policymakers, climate experts, and peacebuilding practitioners from across Africa in a high-level regional forum aimed at tackling the growing link between climate change and insecurity on the continent.

Declaring the forum open in Abuja, Permanent Secretary of the Federal Ministry of Environment, Salihu Aminu Usman, warned that the accelerating pace of climate change is already triggering severe global consequences, stressing the need for urgent and coordinated action.

“Climate change impacts are on the rise daily, with unprecedented and extreme weather conditions being experienced all around the world. Urgent solutions are required before it gets out of hand,” he said.

Usman noted that Nigeria remains committed to global climate obligations under frameworks such as the United Nations Framework Convention on Climate Change, the Kyoto Protocol, and the Paris Agreement. He added that the country has pledged to cut greenhouse gas emissions by up to 47 percent with international support.

He revealed that Nigeria’s National Adaptation Plan (NAP), currently nearing completion, incorporates conflict-sensitive approaches, linking climate adaptation directly to peacebuilding efforts. According to him, environmental pressures are increasingly tied to security challenges such as farmer-herder clashes, banditry, and cattle rustling.

“It would be a mistake to ignore adaptation needs in these peacebuilding contexts,” Usman said, underscoring the importance of aligning climate policies with national security strategies.

In her remarks, Director of the Department of Climate Change, Iniobong Abiola-Awe, highlighted the widespread impact of climate variability on infrastructure, biodiversity, and livelihoods, warning that these disruptions are deepening existing vulnerabilities and contributing to instability.

She said Nigeria’s adaptation planning process has been inclusive and participatory, designed to address medium- and long-term climate risks while strengthening resilience across sectors.

Also speaking, Alec Crawford of the International Institute for Sustainable Development stressed that climate change is no longer a future threat but a present reality, particularly in fragile and conflict-affected regions.

“The intersection between climate risks, war, and conflict is no longer abstract,” Crawford said, adding that adaptation strategies must not only respond to environmental challenges but also actively support peacebuilding efforts.

He commended Nigeria for hosting the forum and acknowledged financial support from the Government of Ireland.

The forum has drawn participation from several African countries, including Burkina Faso, Cameroon, Central African Republic, Chad, Liberia, Mali, Somalia, and South Sudan.

Organisers say discussions will centre on integrating peacebuilding into climate adaptation planning, sharing country experiences, and strengthening collaboration among environment, security, and development stakeholders.

The forum runs through May 7, featuring technical sessions, policy dialogues, and peer learning aimed at shaping a more coordinated African response to the climate-security challenge.

Nigeria Convenes African Leaders on Climate-Conflict Nexus, Pushes Peace-Centred Adaptation Strategy

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