The minority caucus in the House of Representatives on Wednesday staged a walkout when a bill to amend the total advances by the Central Bank of Nigeria (CBN) to the Federal Government from 5% to a maximum of 10%.
The members of the opposition in the green chamber staged the protest after lawmakers of the All Progressives Congress (APC) amended the CBN Act to increase the Ways and Means loans obtainable by the Federal Government from the apex bank.
Known as the Ways and Means, the apex bank offers short-term financing to the Federal Government to cover its budget shortfalls.
The Minority Leader of the House, Kingsley Chinda, had objected to the passage of the amendment, stating that it would erode the powers of the National Assembly and give room for too much discretionary power to the CBN.
He proposed that it should be reduced to 2 per cent instead of increasing it.
But the matter was put to vote and the amendment was passed. Immediately, the minority caucus staged a walkout but later returned and protested the amendment.
The House removed the five per cent in the principal Act and replaced it with 10 per cent.
“(1) Notwithstanding the provisions of section 34 (d) of this Act, the Bank may grant temporary advances to the Federal Government in respect of temporary deficiencies in budget revenue at such a rate of interest as the Bank may determine. The total amount of such advances outstanding shall not at any time exceed ten per cent of the previous year’s actual revenue of the Federal Government,” the proposed Section 38 reads.
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The amendment followed the consideration of a report submitted by the House Leader, Julius Ihonvbere, to the Committee of the Whole, chaired by Deputy Speaker Ben Kalu.
In the last couple of years, ways and means have become highly controversial due to alleged abuse by the erstwhile Muhammadu Buhari administration.
Before leaving office, Buhari attempted to securitise over N23 trillion borrowed from the CBN.
Both chambers of the National Assembly are currently investigating the utilisation of the ways and means approved under the previous administration.Meanwhile, former CBN Governor Godwin Emefiele is facing prosecution over the ways and means and other charges.
However, opposition parties in the lower chamber include the Peoples Democratic Party (PDP), the Labour Party (LP), New Nigeria People’s Party (NNPP), All Progressives Grand Alliance (APGA), among others.