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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.

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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.

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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.

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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.”

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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.

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“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.

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“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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Democracy in Africa, alive and well – Tinubu *Hails Faye, Senegal President-elect

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An upbeat President Bola Tinubu has hailed the current level of democratic culture in Africa, saying that the recent seamless polls in Senegal and Liberia, were indicative of how alive and well the culture had become, a development, which he said would serve the continent positively.

Tinubu, currently the Chairman of the Authority of the Economic Community of West African States (ECOWAS) Heads of Government, particularly congratulated Bassirou Diomaye Faye on his election as the president of the Republic of Senegal, in a statement on Wednesday by his spokesman, Ajuri Ngelale on Wednesday, March 27.

The statement read: “President Tinubu notes that President-elect Faye comes with great promise and a sterling record, wishing him success as he takes on this important job of leading the good people of Senegal.

“The President also congratulates His Excellency, President Macky Sall, for overseeing an election that has been widely adjudged as peaceful and transparent. President Tinubu states that the success of the presidential election in Senegal and the successful conduct of the general election in Liberia a few months ago have affirmed his long-held conviction that the taproot of democracy is deeply established in West Africa and will only grow stronger as it is watered by good governance, justice, and fairness to all.

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“As the chairman of ECOWAS, the President affirms that the successful conduct of the Senegal election is a boost to the sub-regional organization in its efforts to promote peace and constitutional order, as well as strengthen ties among member states. President Tinubu congratulates the people of Senegal and assures them of Nigeria’s best wishes and support.”

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Aiyedatiwa names seven Akerodolu’s commissioners in new cabinet

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Seven commissioners who served the government of the late Rotimi Akeredolu, have found their way into the list of the new cabinet of Lucky Aiyedatiwa, comprising of 12 Commissioner nominees, which was forwarded to the Assembly for approval, on Wednesday.

Ebenezer Adeniyan, spokesman to the governor, named the new nominees as: Segun Ayerin, Olaolu Akindolire, Hamidu Takuro, Banji Ajaka, Boye Ologbese, Sunday Akinwalere, Lola Fagbemi, Saka Yusuf Ogunleye, Rasheed Badmus, Olayato Aribo, Adewale Akinlosotu and Gbenga Olaniyi.

A letter containing the list of the nominees to the Speaker Hon. Olamide Oladiji, urged the lawmakers to give expedited consideration to the confirmation of the nominees.

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Military to Okuama killers: We’ll get you *21 children, orphaned, 10 widowed – COAS

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From Christopher Musa, Nigeria’s Chief of Defence Staff (CDS), came a definite message on Wednesday to those involved in the killing of 17 soldiers at Okuama, in Delta State, a fortnight ago – you can run, but you cannot hide – we will get you, wherever you are holing up.

Musa a General, who spoke at the burial ceremony of the fallen soldiers, held at the National Cemetery in Abuja, promised that the perpetrators of the heinous crime would be brought to justice, as nothing would be left undone to hunt them down from their hiding places.

The highest Nigerian military boss, said at the ceremony, supervised by President Bola Tinubu: “To the perpetrators of violence who seek to sow division and fear among our people, know this: our resolve will not waver. We will hunt you down, we will bring you to justice, and we will restore peace and security to every nook and cranny of our dear nation.”

The slain officers, including Lt. Col. A.H Ali, Commanding Officer 181 Amphibious Battalion, were given posthumous honours by Tinubu, who announced other largesse, including houses for the families and scholarship up to university level for their children, including the unborn babies from their pregnant wives.

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Ali, Maj S.D Shafa (N/13976); Maj D.E Obi (N/14395) and Capt U Zakari (N/16348), whose names had earlier been released by Defence Headquarters of the Nigerian Military, were awarded with Member of the Order of the Niger (MON), while the other ranks, were given the award of the Officer of the Niger.

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They included: SSgt Yahaya Saidu (#3NA/36/2974); Cpl Yahaya Danbaba (1ONA/65/7274); Cpl Kabiru Bashir (11NA/66/9853); LCpl Bulus Haruna (16NA/TS/5844); LCpl Sola Opeyemi (17NA/760719); LCpl Bello Anas (17NA/76/290); LCpl Hamman Peter (NA/T82653); LCpl Ibrahim Abdullahi (18NA/77/1191); Pte Alhaji Isah (17NA/76/6079); Pte Clement Francis (19NA/78/0911); Pte Abubakar Ali (19NA/78/2162); Pte Ibrahim Adamu (19NA/78/6079) and Pte Adamu Ibrahim (21NA/80/4795).

Taoreed Lagbaja, a Lieutenant General and Chief of Army Staff, who also spoke at the event, described the killing of military personnel as demoralizing, adding that it was sad that those responsible for their deaths were the same people the soldiers, who were on legitimate duty at the time of their death swore to protect.

Lamenting that that a total of 21 children had been orphaned and 10 women widowed by the actions of the culprits, Lagbaja, also, sought the cooperation of the community to apprehend the culprits of the heinous crime, while promising that neither the army nor the Nigerian people would abandon the families they left behind.

He said: “The Okuama killing has added to the care of the Nigerian Army and, by extension, the Nigeria state – 10 windows (three of whom are 4, 5, and 8 months pregnant), 21 orphans, and many other dependents which include parents. While commiserating with the families of these gallant soldiers, I assure them that the Nigerian Army and the good people of this country will not leave them in the cold. We shall do all within our power to provide succor to them and preserve the memories of their departed loved ones.”

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