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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
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VP Shettima To Insurgents: We Will Not Be Cowed By Attempts To Undermine Our Collective Peace
VP Shettima To Insurgents: We Will Not Be Cowed By Attempts To Undermine Our Collective Peace
By: Our Reporter
Following President Bola Ahmed Tinubu’s reaching out to the government and people of Borno State regarding the latest insurgency attack in the State, Vice President Kashim Shettima has assured that the administration of President Bola Ahmed Tinubu will not be cowed by despicable acts of cowardice and a doomed attempt to undermine the collective peace of the nation.
Deploring the attacks, including the abductions in Ngoshe and the coordinated assaults on military formations in Konduga, Marte, Jakana, and Mainok, the Vice President reaffirmed that the administration remains resolute in its duty to protect the lives and properties of all Nigerians.
In a statement on Saturday, Senator Shettima emphasised that the Federal Government is already deploying additional tactical assets and intelligence-driven reinforcements to the affected areas.
“The events of the past few days are a painful reminder of the shadow that persists, but let it be known: we choose light over shadow, and hope over despair. Our difference as a nation is the distance between the ruin of anarchy and the promise of order.
“President Bola Ahmed Tinubu has been briefed and has already directed a swift and total mobilisation of our security architecture. The Federal Government will not tolerate any sanctuary for those who seek to displace our people or occupy an inch of Nigerian soil,” he said.
The Vice President assured that the perpetrators of these beastly crimes would face the full wrath of the law.
He continued: “We are not just fighting a war. We are defending the very soul of our humanity against those who preach a toxic rhetoric of hate, and we will not be cowed by their gory acts.
“Our hearts bleed for the families in and the brave soldiers who paid the supreme price in the line of duty. This administration will not rest until abducted citizens safely reunite with their families.”
VP Shettima commended the resilience of the people and government of Borno State under Governor Babagana Zulum and praised the gallantry of the troops on the frontlines.
“We remain one nation, tied to a common destiny. The sanctity of human life is non-negotiable. This madness will be brought to an end, not with empty words, but with the decisive and overwhelming force of the Nigerian State,” he further assured.
VP Shettima To Insurgents: We Will Not Be Cowed By Attempts To Undermine Our Collective Peace
News
Two miners killed, five injured in clash at Zamfara mining site
Two miners killed, five injured in clash at Zamfara mining site
By: Zagazola Makama
Two miners have been killed and five others injured following a clash at a mining site in Abare area of Bukkuyum Local Government Area of Zamfara.
Police sources said the incident occurred on March 5 at about 8:30 a.m. at a mining site in the community.
The sources said the crisis was triggered when a member of an outlawed vigilance group, locally known as Yan Sakai, allegedly stormed the site and attempted to enforce observance of the ongoing Ramadan fast among Muslim miners.
According to the sources, the suspect, identified simply as Kaura, allegedly arrested some of the miners, accusing them of refusing to observe the fasting period.
He was also said to have imposed compulsory levies on those arrested.
The action was reportedly resisted by some miners who objected to the arrest and the alleged illegal levies.
The suspect was said to have retreated from the site following the resistance but later returned with other members of the outlawed group and attempted to effect further arrests.
This led to a confrontation between the two groups, resulting in panic and tension across the mining site.
During the clash, two miners were killed while five others sustained injuries.
Security forces were immediately deployed to the scene after receiving the report.
The injured victims were taken for medical treatment, while investigations have commenced to identify and apprehend those responsible.
No arrest had been made as of the time of filing the report.
Two miners killed, five injured in clash at Zamfara mining site
News
Army troops neutralise 45 bandits in Katsina, including top bandit leader Kachallah Alti
Army troops neutralise 45 bandits in Katsina, including top bandit leader Kachallah Alti
By: Zagazola Makama
Troops of the Nigerian Army have neutralised 45 suspected bandits during a fierce encounter in Danmusa Local Government Area of Katsina State.
Security sources said the operation followed credible intelligence on the movement of bandits suspected to be operating across parts of Katsina and neighbouring Zamfara.
Among those killed during the operation were two top bandit leaders identified as Alti, said to be a nephew and second-in-command to notorious bandit kingpin Adamu Alieru, and another commander known as Damale.
The sources said the confrontation occurred after bandits riding on motorcycles and armed with sophisticated weapons attacked Alhazawa village in Musawa Local Government Area on March 5, rustling cattle from residents.
Community members and some repentant bandits in the area reportedly resisted the attack, killing four of the bandits and recovering the stolen cattle, which were returned to their owners.
However, the bandits were said to have regrouped and returned in larger numbers on March 6, allegedly to launch a reprisal attack.
While moving toward Musawa through Maidabino A Ward, the bandits encountered troops deployed at the Forward Operating Base (FOB) in Dan Ali, Danmusa LGA.
This led to a fierce gun battle during which troops overpowered the criminals and neutralised 45 of them.
However, the operation recorded casualties on the side of the military as three soldiers were killed during the encounter.
Further checks indicated that Alti had recently assumed a more active operational role within the bandit network after the death of his brother, Kachalla Dan Isihu, who was previously killed by security forces during counter-banditry operations.
Alti was said to have coordinated several violent attacks across communities, particularly along the Danjibga axis in Tsafe Local Government Area of Zamfara.
Security sources said troops had intensified operations in the area to track down other fleeing bandits and dismantle their networks.
Army troops neutralise 45 bandits in Katsina, including top bandit leader Kachallah Alti
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