Connect with us

News

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

Published

on

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

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Zulum Calls for AI-Driven Security Reform at Kogi Summit, Urges Tackling of Root Causes of Insecurity

Published

on

Zulum Calls for AI-Driven Security Reform at Kogi Summit, Urges Tackling of Root Causes of Insecurity

By: Michael Mike

Borno State Governor, Professor Babagana Zulum, has called for a fundamental overhaul of Nigeria’s security strategy, urging greater adoption of advanced technology and Artificial Intelligence (AI) to address escalating security challenges across the country.

Speaking at the Kogi Security Summit held in Abuja on Tuesday, Zulum warned that conventional security approaches are no longer sufficient to confront increasingly sophisticated criminal networks. He advocated the integration of modern surveillance systems, including drones, biometric tracking technologies, and predictive analytics to detect and prevent attacks before they occur.

“For us to address insecurity, we need to possess modern technological warfare. Technologies such as artificial intelligence and robotics are now being deployed globally to combat crime,” the governor said.

Beyond technological investment, Zulum emphasised the importance of citizen participation in security management, insisting that communities must take greater responsibility in intelligence sharing and local vigilance rather than relying solely on security agencies.

He further stressed that sustainable peace cannot be achieved without addressing the socio-economic drivers of insecurity. According to him, widespread poverty, unemployment, infrastructural decay, and environmental vulnerabilities continue to fuel recruitment into criminal groups.

“While it is critical to purchase equipment such as vehicles, MRAPs, drones and other facilities to confront insecurity, most importantly, without addressing underlying factors such as poverty, road infrastructure, agriculture, among others, insecurity will not end,” Zulum said, urging policymakers to channel part of security funding into development-focused interventions.

He added that “understanding the socio-economic and political dimensions of every crisis is very important. Increasing poverty, climate vulnerabilities, infrastructural deficit, illiteracy, among others, have to be addressed if we want security in our communities.”

Reiterating the link between peace, security, and development, the governor noted that no meaningful progress can be achieved in an atmosphere of instability.

“The security of lives and property is the cardinal objective of any administration. The nexus between peace and security cannot be overemphasised. It is only when there is security that there will be peace; and without peace, there will be no development,” he said.

Governor Zulum was accompanied at the summit by Hon. Engr. Bukar Talba, member representing Marte, Monguno and Nganzai Federal Constituency

Zulum Calls for AI-Driven Security Reform at Kogi Summit, Urges Tackling of Root Causes of Insecurity

Continue Reading

News

Communal clash at illegal mining site leaves five injured in Zamfara

Published

on

Communal clash at illegal mining site leaves five injured in Zamfara

By: Zagazola Makama

A violent clash between residents of Boko and Jaya villages in Zurmi Local Government Area of Zamfara state has left at least five persons injured following a dispute at a stone mining site.

Sources said the incident occurred on April 20 at about 11:00 a.m. at the Kwanza Stone Mining Site, located between the two communities.

According to the sources, the clash began when members of both villages engaged in illegal mining activities at the site, leading to a disagreement that escalated into violence, with both sides allegedly using firearms.

The sources said the injured victims include Sha’aibu Adamu, 30; Shakiru Suleiman, 26; Kasu Boko, 27; Abdullahi Dahiru, 25; and Ibrahim Usman, 25, all from the affected communities.

They added that the exact number of persons killed could not be immediately confirmed at the time of filing the report.

A joint security team comprising troops of Operation FANSAN YANMA. police personnel and community protection guards was swiftly deployed to the area to restore order.

The injured victims were evacuated to the General Hospital in Kaura Namoda for medical treatment.

Security authorities said normalcy had since been restored in the area, while efforts were ongoing to identify and arrest those involved in the violence.

They also confirmed that investigation into the incident had commenced.

Communal clash at illegal mining site leaves five injured in Zamfara

Continue Reading

News

Security forces foil Kidnapping, flee after alarm in Gombe community

Published

on

Security forces foil Kidnapping, flee after alarm in Gombe community

By: Zagazola Makama

Armed men suspected to be kidnappers have attempted to abduct residents in Unguwan Yamma, Amada area of Akko Local Government Area of Gombe state.

Sources said the incident occurred at about 3:20 a.m. when the attackers stormed the residence of one Alhaji Muhammad Abba, who narrowly escaped the attack.

According to the sources, the assailants proceeded to a neighbouring house where they abducted a child after the mother raised alarm.

The sources said the kidnappers, however, abandoned the child and fled the scene following the commotion.

A divisional patrol team, alongside hunters and local vigilantes, was immediately mobilised to the area and is currently on the trail of the suspects.

Police authorities said investigation was ongoing, while efforts had been intensified to apprehend the fleeing attackers and prevent further incidents in the area.

Security forces foil Kidnapping, flee after alarm in Gombe community

Continue Reading

Trending

Verified by MonsterInsights