The Senate has finalized plans to investigate the N30trillion “Ways and Means” payment that was obtained from Godwin Emefiele – led Central Bank of Nigeria (CBN) during the regime of former President Muhammadu Buhari.
The Senate also stated that the Federal Government should give priority to liquidating its N30 trillion Ways and Means liability over the course of 40 years through a quicker resolution mechanism than the current securitization structure.
The Federal Government uses “Ways and Means,” or loans or advances from the CBN, to meet its short-term or emergency financing needs in order to fund budgetary shortfalls that are projected to be funded later than anticipated by the government.
As this would assist lower the money supply, the Upper Chamber has asked the CBN to put in place procedures to ensure that the beneficiaries of various intervention programmes reimburse the funds after a comprehensive examination of their performance.
The Joint Committees on Banking, Insurance and Other Financial Institutions, Finance, National Planning, Agriculture, and Appropriation report was reviewed by the Senate on Tuesday. The committee was chaired by Senator Abdullahi Yahaya Abubakar (PDP, Kebbi North).
The Senate has decided to look into “quasi-fiscal measures totalling N10 trillion, of which the Anchor Borrower program with a view to plugging loopholes in future development finance activities of the Bank,” while the lawmakers wait to see who will lead the committee that will conduct the comprehensive investigation.
The Upper Chamber has decided to investigate the $2.4 billion in Forex transactions that have been ruled unworkable out of the $7 billion in remaining debts in an effort to promote openness and improve market confidence. The goal is to identify those responsible and impose appropriate sanctions that will act as a deterrent.
The committee that has not yet been formed would also conduct a thorough investigation into the abrupt change in the methodology used to calculate rates by the FMDQ on Monday, January 29, 2024, and the sharp rise in the NAFEM rate that followed, from N891/5 to N1,348.63. The Committee noted that this action would help protect jobs, investments, and economic agents in Nigeria that are exposed to foreign exchange.
In response to the Senate’s adoption of the Yahaya Abdullahi-led Committee’s recommendations, the CBN was asked to provide a legal framework for the effective coordination of monetary and fiscal policies.
Additionally, the Senate asked the CBN to ensure that it adheres to the Act’s provisions regarding accountability and Ways and Means by submitting its budget, financial statements, and report of its activities to the President and National Assembly on time.
To tackle the current issues facing the nation, the Senate has also decided to work with security agencies to fight insecurity and ensure food supplies throughout the nation, particularly in the states of Niger, Benue, Kebbi, Plateau, and Zamfara, among others.
The Upper Chamber has demanded that farmers have better access to markets through the creation of market infrastructure, transportation networks, and connections between farmers and markets.
The Committee in its conclusion said, “the persistent inflationary trend and the fall of the naira underscore the urgency for proactive measures. The findings from the session illuminate the multifaceted factors contributing to these challenges. As this report indicates, a collaborative effort between the Executive and the legislature, and between the fiscal and monetary authorities is imperative to mitigate the risks associated with a potential hyperinflation and the crash of the naira.”
In his speech, the Senate President, Godswill Akpabio, noted that the Ways and Means, interest rates, money to manufacturers, money to DISCOS, and other matters needed to be thoroughly investigated. He noted that details on these matters had never been provided, despite the 9th Senate’s request for them.
In addition to saying that the actions of the 9th Senate have left the country in a serious mess, Akpabio claimed he knew the day would come when people would be asked to explain the Ways and Means since government is a continuous process and the Senate has the right to inquire.
But the Senate President insisted on receiving facts, emphasizing that the 10th Senate will not serve as a rubber stamp.
Akpabio then said, “We are where we are today as a result of illegal things and I think it is necessary that details of Ways and Means be provided.”
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