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

Troops score major victory against terrorists in Kadam Forest, Sokoto

Published

on

Troops score major victory against terrorists in Kadam Forest, Sokoto

By: Zagazola Makama

Troops of the Chief of Army Staff (COAS) Special Intervention Battalion 7, in collaboration with the 8 Division Strike Team under the Joint Task Force North West Operation FANSAN YAMMA, have recorded a significant operational success following a decisive engagement with a notorious terrorist network in Kadam Forest, Tangaza Local Government Area, Sokoto State.

Zagazola report that the operation was launched after credible intelligence revealed that over 100 terrorists, linked to the Lakurawa extremist group, had gathered deep within Kadam Forest to plan attacks on local communities and transport kidnapped victims to their hideouts.

Acting on the intelligence, troops swiftly mobilised to intercept the terrorist movement, establishing contact at approximately 1200 hours.

The ensuing firefight was intense and sustained, with the terrorists attempting a rear-flanking manoeuvre. Troops responded decisively with superior firepower, maintaining tactical dominance and effectively neutralising the immediate threat.

Exploitation operations into the forest confirmed the neutralisation of three terrorists, while several others were believed to have sustained gunshot injuries during their escape.

Security forces recovered one PKT machine gun, two AK-47 rifles, 350 rounds of PKT ammunition, 111 rounds of 7.62 special ammunition, three magazines, two radios, three motorcycles, and a mobile phone. Follow-up operations are ongoing to ascertain additional enemy casualties and recover further arms and equipment.

The Force Commander of Operation FANSAN YAMMA praised the troops’ professionalism and high morale, describing the engagement as a testament to the effectiveness of intelligence-driven, joint security operations in degrading terrorist networks and disrupting their operational capabilities.

He emphasised that aggressive patrols and sustained operations would continue across the general area to prevent fleeing terrorists from regrouping and launching further attacks on communities and transport routes.

“The commitment and courage of our troops remain unwavering. Operations like this demonstrate that the security of citizens is our priority, and we will continue to disrupt and dismantle terrorist networks wherever they operate,” the commander said.

The operation has reinforced confidence among residents of Tangaza and surrounding areas, highlighting the Nigerian Army’s resolve to ensure safety and stability across Sokoto State.

Troops score major victory against terrorists in Kadam Forest, Sokoto

Continue Reading

News

NEDC finance director takes development to improve living conditions of people in Yobe

Published

on

NEDC finance director takes development to improve living conditions of people in Yobe.

By: Yahaya Wakili

The Director of Finance and Admin. of the North East Development Commission (NEDC), Dr. Abubakar Garba Illiya, PhD, FMNG, has made numerous achievements in providing infrastructure facilities to improve the living conditions for the people of Yobe State since he was appointed to that position

The developmental projects provided by Dr. Garba Illiya include the construction and rehabilitation of schools, primary healthcare centers, and water supply in both rural and urban areas with a view to improving the livelihoods of the people of Yobe State.

Dr. Abubakar Garba Illiya, PhD, FMNG, also constructed and rehabilitated numerous rural roads in some local government areas across the state to facilitate the movement of goods and services.

However, Dr. Illiya also accords the same commitment to the schools by procurement of instructional materials as well as construction and rehabilitation of schools destroyed by Boko Haram insurgency across the northeast region.

“Dr. Illiya’s intervention, the NEDC, has contributed tremendously to increasing food sufficiency and food security in Yobe State and the North East by procuring farm inputs and implements as well as providing enough fertilizers and tractors to farmers.

He also assisted youths and women with the capital for business with empowerment initiated for self-employment and also distributed foodstuffs and other humanitarian assistance to Internal Displaced Persons (IDPs) affected by the Boko Haram insurgency in the region.

Dr. Abubakar Garba Illiya further sent youths for training in different categories, like training in phone repairs, welding, tailoring, carpentry, and others, to be self-reliant and assisted them with take-off funds for capital businesses.

He made all these achievements with a view to improving the lives of the peoples of Yobe State and the northeast region after recovery from the Boko Haram insurgency destruction.

NEDC finance director takes development to improve living conditions of people in Yobe

Continue Reading

News

Police neutralise three bandits in Benue , rescue senator after attack on convoy

Published

on

Police neutralise three bandits in Benue , rescue senator after attack on convoy

By: Zagazola Makama

The Police in Benue says have neutralised three suspected bandits during a gun battle following the killing of a 67-year-old man in Katsina-Ala Local Government Area of the state.

Security sources said the incident occurred on March 7 at about 7:30 p.m., when armed bandits loyal to a local kingpin identified as “Chen” had abducted one Zaki Sughter Agenbeer, 67, from his residence in Une Tongov community.

The attackers reportedly took the victim into the bush and killed him after accusing him of providing information about their activities to security agencies.

The DPO Katsina-Ala, in collaboration with the DPO Ukum, subsequently mobilised patrol teams and tactical units to the area. Police operatives later engaged the bandits in a gun duel during which three of the suspects were neutralised.

The corpse of the slain victim was recovered and deposited at the Zaki Ibiam Hospital mortuary, while security operatives have commenced a combing operation in nearby bushes to track down other fleeing suspects.

Meanwhile, the police also confirmed an attack on the convoy of Sen. Udende Emmanuel, representing Benue North-East Senatorial District, during a visit to Tsua town in Vandekiya Local Government Area for a church service.

Sources said some youths from Vandekiya allegedly attacked the senator’s convoy and damaged one of the vehicles.

The Divisional Police Officer in Vandekiya quickly mobilised to the scene and successfully rescued the senator from the situation.

In a related development, some youths also disrupted a thanksgiving service at Tsemke Church in Vandekiya, destroying plastic chairs before police intervened.

Police authorities said the swift deployment of operatives helped to de-escalate the tension and restore normalcy in the area.

Additional patrol and tactical teams have been deployed to Vandekiya to ensure law and order and facilitate the arrest of those responsible for the disturbances.

The State Criminal Investigation Department (SCID) has commenced investigations into both incidents.

Police said the general security situation across Benue State remains relatively calm, while security agencies continue monitoring developments.

Police neutralise three bandits in Benue , rescue senator after attack on convoy

Continue Reading

Trending

Verified by MonsterInsights