- Senate Moves To Probe N32.7tr CBN’s Anchor Borrowers, Ways And Means Policies
- State Governors Benefitted From N18bn As Shock Absorbers Under Ways and Means Since 2015- Senator Alleges
- Senate To Set Up Special Committee To Scrutinise N30trn Intervention Disbursements
Two major policies under the administration of Godwin Emefiele as the Governor of the Central Bank of Nigeria (CBN) will be probed, the Senate has disclosed.
The Senate on Tuesday, resolved to further investigate N10trn Anchor Borrowers’ Programme by the CBN, as well as accountability in the N22.7tr Ways and Means loans by the Apex Bank.
READ ALSO: Economic Mess, Woes: FG Unsure What To Charge Emefiele With, Says Akpabio
The Red Chamber disclosed that the move was to plug loopholes in future development finance activities of the CBN.
The Matrix reports that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun has disclosed that the federal government will audit the N22.7 trillion Ways and Means loan approved by the immediate past administration of former President Muhammadu Buhari before paying.
He made this known at the Public Wealth Management Conference in Abuja organized by the Ministry of Finance Incorporated (MOFI) on Tuesday, February 20, 2024.
The event was organised to deliberate on ways of managing the nation’s assets and resources for the overall wellbeing of the people.
The Ways and Means provision allows the government to borrow from the Central Bank of Nigeria (CBN) if it needs short-term or emergency finance to fund delayed government expected cash receipts.
In May 2023, at the twilight of the Buhari government, the Senate had approved the request of the then President to restructure the N22.7 trillion loans the Central Bank of Nigeria (CBN) extended to the Federal Government under its Ways and Means provision.
Speaking on this, Edun said, “We have to stem liquidity. The Central Bank has led the way in pointing out that the ways and means have to be tailed down and eliminated and that is what we agree with.
“We are going in that direction, there was an inherited amount of N22.7trn in backlogs. We are auditing it and it is like when I am ready to pay a loan from a bank and I ask for an audit before finding the agreed sum to pay.
“But apart from that, how do you get your ways and means down? We have to get revenues up and expenditure reduced as much as possible” he disclosed.
This development is set to further compound the plight of the embattled governor of the apex bank as these monumental developments took place under his watch.
It would be recalled that the Senate President, Godswill Akpabio had a few days back disclosed that the “sins” of Emefiele were too much that the government does not even know the crimes to charge him with.
To this effect, the Senate resolved to set up an ad hoc committee to investigate the details of the Ways and Means, including the various intervention programmes such as the Anchor Borrowers’ Programme, monies given to state governments, manufacturers, aviation, banks, excess funding in the power sector, amongst others which raised the current debt profile of the country.
This was part of resolutions of the Senate after a debate over the report of the National Assembly Joint Committees on Banking, Insurance and other Financial Institutions (BIOFI), Finance, National Planning, Agriculture and Appropriation on the state of the economy.
On the compliance and transparency of economic actions, the Senate equally resolved that the CBN ensured compliance with the provisions of the Act in respect of Ways and Means and accountability through timely submission of its budget, financial statements and report of its activities to the President and National Assembly as stipulated in the Act.
In an extensive debate, Senator Adamu Aliero argued that some state governors, including some retired ones in the Senate, were beneficiaries of N18bn as shock absorbers under the Ways and Means since 2015.
Some lawmakers suggested that a special committee be set up to scrutinise the N30trn intervention disbursements (some of which were grants) and ways to mop them up.
READ ALSO: Nigerians Heave Sigh Of Relief As Cement Manufacturers Move To Crash Price Of Product To N7,000-N8,000
Deputy Senate President Barau Jibrin also explained that the intervention monies were expended outside appropriation without the knowledge of the parliament and noted that lawmakers have a right to interrogate the expenditure.
Senator Victor Umeh, however, deferred, as he enquired to know how the money was spent before approval by the Senate. The issue of whether or not to investigate the matter raised another furore in the Red Chamber.
Akpabio thereafter maintained that owing to the current economic situation, it has become expedient to thoroughly examine the Ways and Means funds.
