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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
NHRC trains 34 human rights advocates in Gombe
The National Human Rights Commission (NHRC) has trained 34 Community Protection Rights Advocates to protect and promote human rights in Gombe state.
Dr Joseph Wanshe, the State Coordinator of the Commission, made the disclosure in an interview with the News Agency of Nigeria (NAN) in Gombe on Monday.
Wanshe said that the training was imperative toward achieving the mandate of the commission in the state.
According to him, the trained advocates, who are mostly in rural areas, will penetrate distant and rural communities where human rights violations are rampant.
He said that the training has started yielding the expected results as there have been increased number of reported cases of human rights violations from rural communities across the state.
He said that the advocates have been deployed to the 11 local government areas of the state.
“We are witnessing an upsurge in human rights reporting coming to the office.
“ The numbers are increasing as regards civil and political rights followed by cases of women and children, domestic violence, economic, social and cultural rights.
“ There are many factors involved in the upsurge as the NHRC within the last one month has stepped up sensitisations and stakeholders’ engagements.
“ We have trained Community Protection Rights advocates, who have been working and as a result, awareness has increased and number of complaints received have spiked,” he said.
Wanshe said that the trained advocates have been affiliated to NHRC at the local government levels toward ensuring wider coverage of the state in terms of human rights protection.
He assured residents on the commission’s effort at ensuring that it achieved effectively its mandate of protection and promotion of human rights.
Wanshe commended the people of Gombe State for their improved confidence in NHRC which has resulted in improved reportage of human rights violations
He further urged communities to support the advocates in their domains in the overall interest of human rights protection.
NHRC trains 34 human rights advocates in Gombe
Troops intercept 11 suspects with IED-making materials in Abuja
Troops of the Nigerian Army have intercepted 11 suspected criminals conveying materials believed to be for the production of improvised explosive devices (IEDs) in Kuje Area Council of the Federal Capital Territory.
By: Zagazola Makama
Security sources said the suspects, comprising 10 males and one female, were arrested at about 12:59 a.m. on April 27 by troops of 176 Guards Battalion deployed at Kuchiyako.
The sources disclosed that the suspects were intercepted in a vehicle along the Kuchiyako–Tipper Garage road, allegedly loaded with IED-making materials.
According to preliminary investigation, the suspects claimed they were en route to mining sites around Kabbin Mangoro in Kuje Area Council to collect mineral resources.
Items recovered from them include explosive charges and three-and-a-half bags of unidentified mineral substances, among other sundry materials.
The suspects are currently in military custody, while investigations are ongoing to ascertain their intent and possible links to criminal or terrorist activities.
Troops intercept 11 suspects with IED-making materials in Abuja
Troops repel terrorists in Zamfara, recover calm after attack on Godel community
By: Zagazola Makama
Troops of the Nigerian Army under 1 Brigade have repelled an attack by suspected terrorists in Godel community of Birnin Magaji Local Government Area of Zamfara State.
Security sources said the incident occurred at about 2:08 p.m. on April 27 when troops deployed at Forward Operating Base (FOB) Kaura Namoda responded to credible intelligence on terrorist activities in the area.
The sources disclosed that troops made contact with the attackers upon arrival, leading to a fierce exchange of fire.
According to the sources, the troops forced the terrorists to withdraw from the area following the encounter.
However, during the attack, the assailants reportedly rustled an unspecified number of cattle belonging to residents of the community.
Three civilians were also said to have sustained gunshot wounds and were evacuated for medical attention.
The sources added that troops have intensified patrols and clearance operations in the general area to prevent further attacks and recover the rustled livestock.
Troops repel terrorists in Zamfara, recover calm after attack on Godel community
NHRC trains 34 human rights advocates in Gombe
Troops intercept 11 suspects with IED-making materials in Abuja
Troops foil kidnap attempt in Kaduna, rescue two victims
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