Senate urges CBN to release $717.4m trapped airlines fund

 

.As President writes Reps for additional $800m loan

.House adjourns plenary

 

The Senate, on Wednesday, urged the Central Bank of Nigeria (CBN) to release 717, 478, 606 dollars airlines funds trapped in the country.

The upper chamber also called on the CBN to allocate 25 million dollars to airlines operating in Nigeria at its forth-nightly dollar auction.

These resolutions were reached sequel to the consideration of a motion titled: “Current Issues on airlines blocked funds in Nigeria” sponsored by Sen. Biodun Olujimi (PDP-Ekiti) on Wednesday at plenary.

Olujimi chairs the Senate Committee on Aviation.

Vice Chairman of the Committee, Sen. Bala Na’Allah (APC-Kebbi ) presented the motion on behalf of Olujimi.

The upper chamber also called on the Federal Government to urgently reverse the current trend of increasing airlines blocked funds in Nigeria.

It called on President Muhammadu Buhari to direct the CBN Governor,Mr Godwin Emefiele to pay up the blocked funds to the affected airlines.

The upper chamber further appealed to the airlines operating in the country not to withdraw their services while efforts were on-going to resolve the issue.

Moving the motion, Na’Allah said that since Jan. 2021, Nigeria had been the most challenged country in the world for the airlines to repatriate their funds to support their operation.

In Feb. Nigeria alone accounted for 44 per cent of total airlines blocked funds in the entire world.

The total airlines blocked funds in Nigeria as at March amounted to 717,478,606, dollars comprising matured bids that the CBN was yet to deliver, bids yet to mature and cash balances in airlines’ accounts for repatriation.

The matured bids not delivered by CBN amounted to 186.5 million dollars accounting for 26 per cent of total blocked funds while three stakeholders (IATA, Qatar Airways, and Ethiopian Airlines) accounted for 57 per cent of total blocked funds.

A review of airlines’ blocked funds in Nigeria in the last six months shows an average month-on-month increase of 49.3million dollars.

The consequences of these blocked funds are: Cheap tickets are not available in Nigeria because taxes and inflation will have eroded the profit when the funds are kept for a very long time.

This makes tickets very expensive and limited because neighbouring countries get the cheap tickets because of prompt payments due to prompt repatriation of funds.

Senators in their contributions supported the motion and voted to approve the prayers when they were put to voice vote by Senate President Ahmed Lawan

.as Buhari writes Reps for additional $800m loan

 

However, President Muhammadu Buhari has sought the approval of the House of Representatives for an additional $800 million loan for the National Social Safety Net Programme (NASSP) from the World Bank.

 

Speaker Femi Gbajabiamila read the letter written by the president at plenary on Wednesday.

 

 

The letter was titled “Request for approval for additional financing of the National Social Safety Net Programme (Scale-Up) by the National Assembly”.

 

The letter reads: “It is with pleasure that I forward the above subject to you. Please note that the Federal Executive Council (FEC) approved an additional loan facility to the tune of USD800 million to be secured from the World Bank, for the National Social Safety Net Programme (NASSP) and the need to request for your consideration and approval to ensure early implementation (Copy of FEC Extract attached).

 

“The House may wish to note that the Programme is intended to expand coverage of shock responsive Safety Net support among the poor and vulnerable Nigerians. This will assist them in coping with the costs of meeting basic needs.

 

“You may wish to note that, the Federal Government of Nigeria under the conditional cash transfer window of the programme will transfer the sum of N5,000 per month to 10.2 million, poor and low-income households for a period of six month with a multiplier effect on about 60 million individuals. In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.

 

“The NASSP being a social intervention programme will stimulate activities in the informal sector, improve nutrition, health, education and human capital development of beneficiary households.

 

 

“Given the above, I wish to invite the House to kindly approve an additional loan facility to the tune of USD800 million to be secured from the World Bank, for the National Social Safety Net Programme (NASSP).

 

“While hoping that this submission will receive expeditious consideration by the House. Please accept, Rt. Honourable Speaker, the assurances of my highest regards.”

 

The President also transmitted the Federal Fire and Rescue Service (Establishment) Bill 2022 to the House.

 

It reads: “Pursuant to Section 58(2) of 1999 Constitution of the Federal Republic of Nigeria (as amended), I forward herewith, the Federal Fire and Rescue Service (Establishment) Bill, 2022 for the consideration of the House of Representatives.

 

“The Federal Fire and Rescue Service (Establishment) Bill, 2022 aims to establish and provide legal and institutional framework for the Fire and Rescue Service.

 

“While hoping that the Bill will be considered for passage in the usual expeditious manner, please accept, Right Honourable Speaker, the assurances of my highest regards.”

 

The Speaker referred the letters to the relevant committees.

 

The House adjourned sitting indefinitely after taking the letters from the President.

 

.Reps Adjourn Plenary Due to Induction of Members-elect

 

The House of Representatives on Wednesday adjourned its planery to Tuesday May 23, 2023 due to the ongoing induction of new members of the House that got elected into the parliament during the 2023 general elections.

 

The induction programme is being organized by the National Institute of Legislative and Democratic Studies NILDS and  the management as well as the office of the Senate President and Speaker House of Representatives.

 

A member of the House Hon. Ibrahim Isiaka raised a Point of Order relying on Order 6 (1) & (2) where he noted that his privilege as a member of the House is being breached due to the ongoing plenary that invariably denied him the opportunity of attending the induction training for lawmakers-elect currently taking place at the International Conference Center.

 

He noted that while at plenary, he can’t benefit from the ongoing training.

He prayed that the House adjourn the plenary till after the induction training is concluded to enable the lawmakers-elect to participate in the training.

 

Speaking against the motion, the Deputy Speaker, Hon. Ahmed Idris Wase noted that it is not the tradition of the House to adjourn the plenary to attend the induction training. He also added that the adjournment is unnecessary as there were issues of national importance on the ground to be tackled by the House that may be affected by the adjournment.

 

In his contribution Hon. Tajudeen Yusuf  opined fairness dictates that if plenary could be adjourned for lawmakers-elect that were in the first batch of the programme, those in the second batch should not be denied. He said having taken the route of allowing a group of lawmakers to attend the training, others should be allowed to, as well.

 

Speaker Gbajabiamila, before putting the question, noted hat Hon Isiaka raised a fundamental question noting that the induction programme is a right, not a privilege.

 

According to him, if the lawmakers-elect in the first batch were allowed to attend the programme, the second batch must also be allowed, for fairness and equity.

 

 

He pleaded that the plenary should not be adjourned abruptly since the plenary has commenced and the business of the day is concluded.

 

Hon. Ademorin Kuye, in his contribution, said can not afford to miss the training being different from previous programmes with the introduction of emerging innovations.

 

 

 

 

Consequently, the House at 12.25 pm adjourned plenary till the next week Tuesday.