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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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NDLEA intercepts cocaine hidden in stockfish heads, arrests 80-year-old suspect, others nationwide

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NDLEA intercepts cocaine hidden in stockfish heads, arrests 80-year-old suspect, others nationwide

By: Zagazola Makama

The National Drug Law Enforcement Agency (NDLEA) says it has intercepted a large consignment of cocaine concealed in imported dry stockfish heads and arrested a key member of an international drug trafficking syndicate operating across several countries, including India.

The Director, Media and Advocacy, NDLEA Headquarters, Abuja, Mr Femi Babafemi, disclosed this in a statement on Sunday.

Babafemi said the seizure followed credible intelligence on trans-border criminal activities, which led to a coordinated sting operation by operatives of the Murtala Muhammed International Airport (MMIA) Strategic Command at Ojo area of Lagos on March 19.

He said the operatives recovered 237 wraps of cocaine, weighing 5.80 kilograms, concealed inside stockfish heads locally known as “okporoko,” in three jumbo bags allegedly in possession of a 36-year-old suspect identified as Akputa Dickson Ejike.

According to him, the consignment was destined for Delhi, India.

Babafemi further stated that in a separate operation on March 25, NDLEA operatives at a courier company in Lagos intercepted two illicit consignments heading to the United Kingdom.

He said one of the consignments contained 1.9 kilograms of methamphetamine concealed in automobile filters, while the second contained 40 ampoules of morphine sulphate and nine ampoules of fentanyl.

The NDLEA spokesperson added that operatives of the agency also arrested a suspected female drug baron, Omolade Abigail Jolayemi, 46, popularly known as “Iya Ghana,” during a raid at her residence in Yaba, Lagos, where 135 blocks of Ghana Loud, weighing 76.30 kilograms, were recovered.

He said another suspect, Anayo Lucky Ohabiro, 39, was arrested in Surulere, Lagos, with 78 blocks of the same substance weighing 41 kilograms.

Babafemi disclosed that in Ekiti State, an 80-year-old suspect, Oke Samuel, was arrested during a special raid at Erinmo road, Efon-Alaaye, with 2.2 kilograms of skunk and methamphetamine, while another suspect was arrested in Ondo State with 894.72 kilograms of skunk recovered from an uncompleted building.

He said further operations in Benue, Edo and Taraba States led to multiple seizures, including skunk, codeine-based syrup, and cannabis concealed in animal feed, with several suspects arrested.

Babafemi added that the War Against Drug Abuse (WADA) advocacy campaign also continued nationwide with sensitisation lectures in schools across Cross River, Adamawa, Oyo, Kano and Lagos States.

He commended NDLEA officers across the affected commands for the successful operations, reaffirming the agency’s commitment to balancing drug supply reduction with drug demand reduction efforts.

NDLEA intercepts cocaine hidden in stockfish heads, arrests 80-year-old suspect, others nationwide

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Troops recover over 300 rustled livestock after clash between bandit factions

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Troops recover over 300 rustled livestock after clash between bandit factions

By: Zagazola Makama

Troops of Operation FANSAN TANMA have recovered more than 300 rustled livestock following a confrontation involving rival bandit factions operating between Katsina and Kano states.

Sources said the development followed intelligence on movements of a faction loyal to a bandit leader identified as Muhammadu Filatan, allegedly heading towards Kano State after a clash with a rival group linked to Aleiro in Zamfara State.

The source disclosed that troops of 3 Brigade, deployed at Forward Operating Bases in Tsaure, Yanchibi, Yankwada and Lakwaya, conducted fighting patrols along the riverine boundary between Katsina and Kano states to intercept the fleeing group.

“At about 4:00 p.m., troops at FOB Tsaure made contact with armed bandits at the Gulbi–Goron Dutse axis in Shanono Local Government Area of Kano State, who were moving with a large herd of rustled livestock,” the source said.

He added that troops engaged the bandits in a firefight, forcing them to abandon the animals and flee towards Gidan Gora village in Musawa Local Government Area of Katsina State.

“Following the encounter, troops recovered a total of 120 cows, 200 sheep, 39 goats and three donkeys,” he said.

According to the source, the recovered livestock were subsequently handed over to authorities in Shanono Local Government Area.

Troops recover over 300 rustled livestock after clash between bandit factions

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Troops intercept vehicle, recover 850 litres of fuel in Yobe

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Troops intercept vehicle, recover 850 litres of fuel in Yobe

By: Zagazola Makama

Troops of Operation Hadin Kai have intercepted a vehicle conveying suspected illegally supplied fuel and recovered large quantities of Premium Motor Spirit (PMS) in Karasuwa Local Government Area of Yobe State.

Sources said the operation was carried out at about 11:38 p.m. on March 27 by troops of 241 Battalion deployed at Forward Operating Base (FOB) Jajimaji.

The source disclosed that the troops acted on credible intelligence regarding suspected illicit activities by some filling stations in the area.

“During the night patrol, troops intercepted a vehicle along the Karasuwa–Jajiri road, but the driver abandoned the vehicle and fled on sighting the troops,” the source said.

He added that a search of the vehicle led to the discovery of 34 jerrycans of PMS, each containing 25 litres, amounting to about 850 litres.

According to him, troops immediately exploited the surrounding area in an attempt to apprehend the fleeing driver, but the effort was unsuccessful.

The source said the recovered items are in military custody, while efforts are ongoing to identify the filling stations allegedly involved and arrest those responsible.

Troops intercept vehicle, recover 850 litres of fuel in Yobe

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