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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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Troops arrest suspected terrorist, recover rifle in Zamfara

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Troops arrest suspected terrorist, recover rifle in Zamfara

By: Zagazola Makama

Troops of Operation FANSAN YAMMA have arrested a suspected terrorist and recovered an AK-47 rifle during a routine patrol in Gusau Local Government Area of Zamfara State.

Security sources said the arrest was made on April 3 at about 11:30 a.m. by troops of 1 Brigade Combat Team deployed at Forward Operating Base (FOB) Kurya.

The suspect was apprehended at Tungan Haki village and found in possession of one AK-47 rifle mounted with a magazine containing 13 rounds of 7.62mm special ammunition.

The sources disclosed that the suspect and the recovered weapon are currently in custody for further investigation and necessary action.

They added that troops have continued to intensify patrols and surveillance operations across the area to curb criminal activities.

Troops arrest suspected terrorist, recover rifle in Zamfara

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IED explosion injures two security personnel during patrol in Anambra

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IED explosion injures two security personnel during patrol in Anambra

By: Zagazola Makama

Two security personnel have been injured following the detonation of an improvised explosive device (IED) during a fighting patrol in Ihiala Local Government Area of Anambra State.

Security sources said the incident occurred on April 3 at about 12:30 p.m. when troops of Sector 5, Operation UDO KA, deployed at Forward Operating Base (FOB) Lilu, conducted a patrol alongside Nigeria Police personnel.

It was gathered that the team sighted the IED within the Lilu general area and attempted to destroy it.

However, the explosive device detonated during the process, injuring an Explosive Ordnance Disposal (EOD) personnel and a police officer.

The injured personnel were immediately administered first aid at the scene before being referred to a medical facility for further treatment.

Authorities said the situation has been brought under control, while operations continue in the area to ensure safety and prevent further incidents.

IED explosion injures two security personnel during patrol in Anambra

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Troops neutralise two terrorists, destroy hideouts in Plateau clearance operations

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Troops neutralise two terrorists, destroy hideouts in Plateau clearance operations

By: Zagazola Makama

Troops of Operation Enduring Peace (OPEP), under Operation Wutan Daji, have neutralised two suspected terrorists and destroyed several hideouts during clearance operations in Wase Local Government Area of Plateau.

Security sources said the operations were carried out in conjunction with local vigilantes across Babangida, Adua and Bokayi villages within the Dutsen Zaki forest.

It was gathered that troops made contact with the terrorists along the Babangida–Adua road, leading to a gun battle in which two of the suspects were neutralised, while others fled with possible gunshot wounds.

No casualties were recorded among the troops, and all equipment was accounted for.

During the operation, troops recovered one locally fabricated gun, a belt containing 105 rounds of 7.62mm PKT ammunition, 30 rounds of 7.62mm special ammunition and a cutlass.

In a related development, troops of CSI Battalion XIV, in collaboration with 332 Artillery Regiment and vigilantes, conducted further clearance and raid operations in Dadin-Kowa and Dada villages.

The operation involved 47 soldiers and four vigilantes, supported with motorcycles, gun trucks, a Mine-Resistant Ambush Protected (MRAP) vehicle and an artillery gun.

The troops established a gun position and carried out fire missions on suspected terrorist locations in Madam Forest to deny them freedom of action.

Subsequent raid operations in Dadin-Kowa village led to the destruction of suspected terrorist hideouts, although no contact was made with the fleeing elements.

Troops neutralise two terrorists, destroy hideouts in Plateau clearance operations

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