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One week after approving controversial N22.7trillion ‘Ways and Means,’ Buhari back to Senate with $800million loan request

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Exactly one week after it approved a whopping N22.7trillion ways and means loan, borrowed from the Central Bank of Nigeria (CBN), President Muhammadu Buhari returned to the Senate on Wednesday, this time seeking for approval of a fresh $800million loan.

A lot of dusts had been raised by stakeholders, who carpeted the ease with which the President’s request sailed through the Red Chambers of the National Assembly, with many analyst, calling it an illegal act for the lawmakers to give official seal to the indiscriminate Ways and Means, which allows the government to borrow from the apex bank if it needs short-term or emergency finance to fund delayed government expected cash receipts of fiscal deficits, despite a provision in the law that put a ceiling to it.

Regardless, the President, who is currently in the UK attending to his teeth, in a letter read by Senate President Ahmad Lawan at plenary, said the loan, which would be sourced through the World Bank, would be utilised to scale up the National Social Safety Net Programme.

The Senate, had last year thrown out the President’s request to securitise the loan when the proposal was brought by the President, citing a lack of details, but a further pressure was mounted when it was again re-presented, with Buhari appealing to the lawmakers to to reconsider its stand, as failure to grant the approval would cost the government about N1.8tn in additional interest in 2023.

The Senate Leader, Ibrahim Gobir, who led the Senate in the debate for the approval of the Ways and Means on Wednesday, explained that part of the money was given as loans to states.

Gobir added that the Special Committee set up by the Red Chamber to scrutinise the fiscal document, put up the report after ‘critical analysis and review of submissions made by the Federal Ministry of Finance, Budget, and National Planning; and the CBN

The Senate Leader said the panel discovered that the Ways and Means balance was initially N19. 3tn (N19.326,745,239,660.20) as of June 30, 2022 but later grew to N22.7tn (N22,719,704,774,306.90 ) as of December 19, 2022 as a result of financial obligations to ongoing capital projects and additional expenditures which includes domestic debt service gaps and interest rate.

He noted that the Senate on Wednesday, December 28, 2022, approved the sum of N819,536,937,813 from the N1tn additional request made by the president leaving an outstanding balance of N180.4bn being the accrued interest on the sum.

Gobir further stated that the House of Representatives had earlier approved the additional N1tn Ways and Means Advances requested by the President to enable the smooth implementation of the supplementary budget.

Gobir said, “Part of the Ways and Means monies were given to State Governments as loans to augment budgetary shortfall in their various States.

“Most of the requests for funds for an increase in Ways and Means were made to Mr President on the need to finance the budget due to revenue shortfall. Such requests were either made by the Hon. Minister of Finance, Budget and National Planning or the Central Bank Governor.

“The Federal Government as a result of revenue shortfalls occasioned by the COVID-19 pandemic and low oil prices, relied heavily on the Ways and Means to finance its budget deficit to keep the country working for the people.”

The Senate leader added, “The monies received by the Federal Government were actually used for funding critical projects across the country.

“That due to the serious shortfall in Government Revenue, the Federal Government in order for the economy not to collapse, was compelled to borrow repeatedly from the CBN, exceeding the 5 per cent threshold of the prior year’s revenue as stipulated by the CBN Act, 2007.

“That the Federal Government through the Ministry of Finance, Budget, and National Planning has concluded plans to convert the CBN loans to tradable securities such as treasury bills and bond issuance.”

Gobir said the Senate Special Committee after exhaustive deliberations, recommended among others, the restructuring of N22.7tn for Ways and Means Advances be approved because the advances were made to ensure that the government does not shut down.
The panel further sought the approval of the Senate for the sum of N180.4bn being the balance of the supplementary budget and the interest accrued on the Ways and Mean Advances.

Other recommendations were, “If there is a need to exceed the five per cent threshold of the prior year’s revenue, recourse must be made to the National Assembly for approval.

“The Federal Government should begin the process of recovering the portion of the Ways and Means given as the loans to State Governments as further deferment of the repayment of the loans by the States will not be healthy for the economy.

“The Federal Government through the Ministry of Finance, Budget and National Planning should expedite action on the repayment of the loans through treasury bills and bond issuances.

“The National Assembly will not condone future increases in the Ways and Means without seeking the approval of the National Assembly.”

Meanwhile, the Senate President, Ahmad Lawan, after the approval of the fiscal document, noted that the Ways and Means Advances was a global practice.

He, however, faulted the process adopted by the executive arm of government which failed to carry the National Assembly along while accumulating a huge amount of loans.

Lawan added that the Senate had to pass the Ways and Means Advances so that the federal parliament would be able to consider and pass the 2022 Supplementary Budget still pending before the two chambers.

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Panic! Gunmen storm Anambra Assembly, attempt to bundle away lawmaker

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Panic-stricken members of the Anambra State House of Assembly, watched in utter horror on Thursday as one of their colleagues was bundled into a waiting vehicle, by four gun-wielding men, preparatory to being whisked away, before mother-luck came calling.

It took the quick reflexes of security guards at the entrance who locked the gate, to prevent the armed men, who later turned out to be operatives of the Department of State Services (DSS) from completing the operation.

The target of the operatives was Onyekachukwu Ike, the House of Assembly-elect member for the Nnewi North constituency, who had joined in the valedictory session for outgoing members, though it is not known why the members of the agency were after him.

Eyewitness account, said the operatives arrived the Assembly complex in three vehicles in a commando version, grabbed the member-elect as he emerged from the venue validectory thanksgiving mass for the seventh Assembly and forced him into their waiting vehicle.

However, it took the eagle-eyed members of the security team of the assembly to truncate the attempt to drive the lawmaker away, because they quickly locked the exit gate, thus halting the operation, as it gave people the opportunity to intervene.

Reacting to the incident, Acting Clerk of the Assembly, Esther Aneto, who bemoaned the manner the operatives carried out the operation, said neither the authorities of the assembly, nor the police was informed about it.

It took the intervention of the Speaker, Uche Okafor, and the Deputy Governor, Onyeka Ibezim, who came to represent the Governor at the Valedictory session before the member-elect was released from the vice grips of the DSS operatives, who however, explained that they had a court order to arrest him.

 

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Judge orders Yahoo-Yahoo student to clean EFCC premises for two weeks

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Justice Aliyu Shafa, of the Federal High Court, Gwagwalada, Abuja, on Thursday ordered a student, Istifanus Irmiya, to clean the premises of the Economic and Financial Crimes Commission (EFCC) for for two weeks, after he was convicted for internet fraud.

Irmiya, who was docked by the EFCC on a two-count charge, boarding on cheating and impersonation, was also ordered to pay a fine of N100,000, while the phone he used in committing the offence was to be destroyed and burnt.

This was after the culprit, pleaded guilty to the charges and begged the court for leniency, which the court accepted, but insisted that he must carry out the punishment of cleaning the EFCC premises from 9 a.m. to 12 noon daily for two weeks, to teach him a lesson.

Frowning at the rate internets fraud were being committed, Shafa, said: “I have carefully listened to the plea of allocutus made by the convict and the defence counsel. The rate of internet fraud through Facebook, Instagram, Whatsapp, among others in the society is so alarming.

“That he is a first time offender is not an excuse to go scot-free. The rate of Yahoo-Yahoo among youths is alarming. “Many who resort to crime always have ‘I want to get rich quick’ mindset. Sending him to prison might make him more hardened,” the judge ruled.

Irmiya, who pleaded with the court to tamper justice with mercy, promising that he would not indulge in such acts again, said: “I want to beg the court for mercy. I’m deeply sorry for what I have done. I’m a changed person now knowing fully well the consequences of my offence.”

Chibuike Chima, his lawyer, who echoed his pleas, told the court that Irmiya had no previous conviction record and was also remorseful, saying: “Irmiya is the only son of the family and he is seeking admission into the university. He has spent one month in EFCC custody.
“The convict has shown remorse and genuinely repented over the crime he has committed by way of expressing genuine repentance, he has restituted the proceeds of crime which is the sum of 250 Euros. The convict is a first-time offender. He has not be convicted for any other crime of whatever kind. We urge my lord to tamper justice with mercy. We assure this court that going forward, the convict will be of good behaviour.”

The EFCC Counsel, Taiwo Aromolaran, who told the court that Irmiya had sometime in 2022 within the jurisdiction of the court cheated by personation, said that the convict deceived his victim while pretending to be one mistress Clara a female Caucasian.

She said that the convict carried out an illegal act, making one Alex Lexis, a German, to send him the sum of 250 Euros which he received via PayPal and Nosh Apps before transferring the money to his own account domiciled with Polaris Bank.

She said that the convict sometime in 2022, also had in his possession documents containing false-pretence, where he represented himself as a German on his Facebook and KK accounts, created by him with the intent to induce Alex Lexis to deliver money to him.

She said the offence contravened the provisions of Section 321 of the Penal Code Act of the Federation (Abuja), 1990 and punishable under Section 324 of the same Act, adding that Section 6 in conjunction with Section 8 of the advance-fee fraud and other related offences Act, 2006 and punishable under Section 1 (3) of the same Act.

Pleading with the court that the cell phone being the instrument used for the crime should be forfeited, Aromolaran urged the court to take into consideration the increase in the menace of internet frauds in Nigeria.

Bewailing the menace fraudsters had caused to the image of the country and to their victims, she told the court that Irmiya and his group, operated as syndicates, saying: “They believe that merely coming to court and pleading guilty is enough to attract the sympathy of the court.”

 

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BREAKING: Tinubu, hosts G-5 govs at Villa *Intensifies moves to break PDP

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It is becoming obvious that President Bola Tinubu, may be working hard to break the ranks of the Peoples Democratic Party (PDP), as he is currently hosting the five former Governors of the party who former the G-5 Integrity Group, a very powerful bloc in the main opposition party that fought against the ticket of the party.

Nyesom Wike, former Governor of Rivers State, who was the arrowhead of the G-5, comprising Okezie Ikpeazu of Abia, Samuel Ortom of Benue, Ifeanyi Ugwuanyi of Enugu and Seyi Makinde of Oyo, was seen leading the other members to the Presidential Villa, for a meeting with Tinubu, on Thursday afternoon.

The group had vehemently opposed the ticket of Atiku Abubakar, presidential candidate of the PDP in the 2023 presidential election and refused to join the campaigns on the ground that the former Vice President did not support the ouster of Iyorchia Ayu, then National Chairman of the party on the ground that he came from the same North as him.

Incidentally, the meeting is coming few hours after Caleb Mutfwang Governor of Plateau State and Umo Eno of Akwa Ibom, both PDP governors at the same State House Abuja, in what observers are already interpreting as an attempt to woo the top echelon of the opposition party.

The meeting with the G-5 governors, shortly after that of Tinubu with the two PDP governors, is coming as the party and Atiku Abubakar, are trying to prove before the Presidential Election Petition Tribunal (PEPT), sitting in Abuja that Tinubu did not win the 2023 presidential election.

Details later…

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