There was uproar in the Senate on Wednesday over President Muhammadu Buhari request for approval of restructuring of N22.7trillion Ways and Means advances given the federal government by the Central Bank of Nigeria (CBN)
The lawmakers raised objections while considering the report of the Committee on Finance for Approval of 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 for 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, Tenure 40years, Moratorium on principal repayment, three years, Pricing interest rate 9%.
“Your concurrence and approval is sought to allow for the implementation of same”
The Senate had in line with parliamentary procedures, given the request expeditious consideration by passing it for second reading and mandating its committee on Finance to work on it.
But trouble started when the Chairman of the Committee , Solomon Olamilekan (APC Lagos West), was called upon to present the report.
Senator Betty Apiafi (PDP Rivers) was the first to move against the report through constitutional point of 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 not allowing the report to be presented before kicking against it.
Anger of the Senators against the report was openly expressed when the report was being presented with serious uproar at the background
In a move to ensure the report does not see the light of day, Senator Thompson Sekibo rose through constitutional orders as he cited 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 that “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 N22.7triillion 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 .
Effort by the Senate President to make Senators back out of the protest did not work as many of them, left their seats with chants of disapproval, however, Lawan hurriedly called for a close door session that lasted for about one and half hours.
After the closed door session, Lawan announced the resolve of the Senate to step down consideration of the restructuring of N22.7trillion Ways and Means but approved N819.5billion from the fresh N1trillion being requested for.
The approved N819.5billion is meant for funding of the 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 to the tune of N22.7triillion.
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’s recess.
The Senate later adjourned plenary for New Year recess to reconvene on January 17th, 2023.