On Wednesday, during its emergency session, the House of Representatives approved a new ceiling of 10 per cent for Central Bank of Nigeria’s (CBN’s) Ways and Means advances to the Federal Government amidst disagreement.
Section (38) of the CBN Act (2007) limits such advances under ways and means to five per cent of the previous year’s revenue.
The House Committee on Finance had recommended a ceiling of 15 per cent in its report considered and adopted.
However, the Minority Leader of the House, Kingsley Chinda, observed that approving a higher percentage for the advances will create issues regarding accountability, saying the figure should be put at two per cent.
“Allowing CBN to advance 15 per cent is not good, as it will give it so much latitude. For accountability, I will recommend two per cent”, he said.
However, Chairman of the Committee on Finance, James Faleke insisted that the 5 percent as contained in the extant Act was no longer feasible.
He said “For us to move on, we need to move up. For the issue of transparency and accountability, the Committee (on Banking and Currency) has the responsibility to oversight”, Faleke stated.
His submission was greeted with shouts of “no” by many members, who were apparently against the move to increase the percentage.
In his intervention, Chairman of the Committee on Reform of Government Agencies and Commissions, Ayokunle Ishiaka while opposing the recommended 15 percent however settled for 10 percent, saying that managers of the economy may become reckless in the belief that “there is always something to fall back on”.
Speaking also, former Deputy Speaker, Idris Wase supported the position of Ishiaka, that 10 percent be adopted.
The Deputy Speaker however, appealed to members for understanding in view of the recent increase in the minimum wage of workers, saying the government need more money.
“There is gap, and funding has to come from somewhere to bridge the gap in meeting government obligations.”, he said.
