Senate in rowdy session over Buhari’s request for N22.7trn Ways and Means advances

 

.Defers debate on it till further notice

.Seeks extension of CBN’s deadline on old Naira notes to June 30, 2023
Adekunle Adesuji, Abuja

The Senate witnessed a rowdy session on Wednesday over President Muhammadu Buhari’s request for approval for restructuring of N22.7trillion Ways and Means Advances
collected by the Federal Government  from Central Bank of Nigeria ( CBN) , within the last ten years .

President Buhari had in a letter read on the floor of the Senate on Wednesday last week , sought for restructuring of the N22.7trillion Ways and Means advances collected from CBN within the last ten years in addition to N1trillion to be collected as fresh domestic loan.

Buhari in the  letter  said Ways and Means are advances from the Central Bank of Nigeria to the federal government for emergency  funding of delayed receipt of fiscal deficits .

The President in the request said : ” The Ways and Means advances by the Central Bank of Nigeria, to the federal government has been a funding option to the federal government to cater for short term or emergency finance to fund delayed government expected cash receipt of physical deficit.

“The Ways and Means , balances as at 19th December 2022  is N22.7 trillion.
“I  have  approved the securitization of the Ways and Means balances along the following terms – Amount. N23 .7 trillion ,
Tenor 40years , Moratorium on principal repayment, three years , Pricing interest rate 9%, .

“Your concurrence and approval is sought to allow for the implementation of  same”

After the reading  of the President’s letter , Senate forwarded the request to Senate Committee on Finance in line with parliamentary procedure .

However, trouble started when Chairman of the Committee , Solomon Olamilekan was called upon to present the report .

Senator Betty Apiafi  rose against it through constitutional point of order, by saying Ways and Means  expenditure are  not known to the Nigeria Constitution .

She was however ruled out of order by the President of the Senate , Ahmad Lawan for allowing the report to be presented before kicking against it.

Anger of the Senators mainly from the opposition Peoples Demicratic Party, PDP against the report was expressed when being presented with negative background noise against its  presentation by Senator Olamilekan.

In a move to kill the report , Senator Thompson Sekibo rose through  constitutional orders by citing sections  80, 83, Section1,13(1) of the 1999 Constitution and section  38  of the CBN Act to kick against the request .

He said : “Section 80 of the 1999 Constitution as amended states that all revenues or other monies raised or recieved by the Federation, not being revenue and other monies payable under this constitution or any act of the National Assembly into any other public fund of the federation established for a particular purpose shall be paid into and for  and form one Consolidated Revenue Fund of the Federation

“No money shall be withdrawn from the Consolidated Revenue Fund  of the Federation except to meet expenditure that is charged upon the fund or where the issue of those monies have been authorized by an appropriation act, supplementary act or an act passed in pursuance of section 81 of the constitution

“No money shall be withdrawn from any account other than the Consolidated Revenue Fund of the Federation unless the issue of those monies have been authorized by the Act of the National Assembly.

“Section 80 (4) states that  no money shall be withdrawn from the Consolidated Revenue Fund or any other fund of the Federation except by the approval of the National Assembly, except in the manner prescribed by the National Assembly .

“Section  38 of the CBN Act states “any money collected by federal government as loan or emergency fund in form of Ways and Means Advances , must be refunded before collection of another one”.

“Mr President, the relevant laws quoted , clearly shows that the N22.7trn Ways and Means Advances already spent by federal government without informing the National Assembly was wrong and will be unfair as representatives of Nigerians to approve this request”, he said .

Efforts by the Senate President to force Senators to pass the report proved abortive as many of them, left their seats and shouting , no, no, which hurriedly made them to go into close session for about one and half hours.

After the closed session , the Senate as  announced by  Lawan , resolved to step down restructuring of  N22.7trn Ways and Means but approved N819.5billion from  the fresh N1trillion being requested for .

The approved N819.5billion is for funding for 2022 Supplementary Budget .

For the others, a special committee was set up to summon the Minister of Finance , Zainab Ahmed ,  CBN governor , Godwin Emefiele and heads of other relevant agencies , for details on expenditure made from the N22.7trn .

The Committee headed by the Senate Leader, Ibrahim Gobir (APC Sokoto East), is to submit its report on 17th January , 2023 when Senate resumes plenary from the New Year recess .

The Senate later adjourned plenary for New Year recess to reconvene on January 17th, 2023.
Meanwile, the Senate has urged the Central Bank of Nigeria (CBN) to extend its deadline for the phasing out of the old N1,000 and N500 notes from January 31st to June 30th , 2023.

The recommendation follows a motion by the senator representing Borno South, Ali Ndume raising the alarm over the January 31st deadline.

According to him, the notice given by the CBN is too short, considering the “few” banks in Borno and Yobe States and the “inability” of people in these states to lodge the old notes in time to meet the deadline.

The CBN Governor, Godwin Emefiele on October 26, 2022 announced the redesign of the threm bank notes, saying the new and existing currencies will remain legal tender and circulate together until January 31, 2023.

The apex bank believes the redesigned notes will limit cash in circulation and therefore restrict the deplorable activities of ransom-demanding kidnappers as well as politicians set on rigging the upcoming elections.

President Muhammadu Buhari, in November, unveiled the redesigned naira notes as prop osed by the CBN, marking the first time in 19 years since Nigeria’s last currency redesign.

The CBN Governor, Godwin Emefiele maintained that there would be heavy restriction on the volume of cash that people can withdraw over the counter, as it works with the Economic and Financial Crimes Commission (EFCC) to monitor the purpose of any heavy transactions.

The redesigned currency note he asserts can never be counterfeited, adding that to forestall such occurrence, the CBN will redesign the notes after every five to eight years.

Last week, the World Bank expressed concern over the economic impact of the recent naira redesign on Nigerian households and businesses.

“At present, households and firms already face elevated financial pressures from prolonged, high inflation, recently compounded by external food and fuel price shocks, and the severe floods, and phasing out existing naira notes over a short time period may add to their challenges,” it stated.

The global financial institution stated that the timing and short transition period of the Nigerian naira redesign may weigh on economic activity.