By Hassanat Adebowale
A Senate Ad hoc Committee has accused the Central Bank of Nigeria (CBN) of obstructing its efforts to uncover how the N30 trillion “Ways and Means” loan facility granted to the federal government were utilized. The facility was allegedly provided to the federal government between 2015 and 2023.
Committee Chairman, Senator Isah Jibrin of Kogi East, made the allegation on Tuesday after receiving an interim report from the committee’s consultants. Jibrin claimed that the CBN has refused to provide the necessary documents to facilitate the investigation, thereby delaying the completion of the assignment.
Although Malam Hamisu Abdullahi, Director of Banking Services at the CBN, asserted that the apex bank had provided all requested documents, Jibrin disputed this claim. “None of the documents was submitted to us,” Jibrin said. “As it is, we will not allow you to attend the next meeting because you have been coming here for the same reason. The least person that will attend the next meeting should be a deputy governor of CBN.”
Jibrin further stated, “What you are telling us is not the truth. We have not received the documents. I don’t want to deceive the public here.” He emphasized that the committee’s assignment, entrusted by the Senate President, was being frustrated by the CBN’s actions.
“The information we have here is not different from what we have heard all along. What we did was to hand over the documents to the consultants, and when the consultants made available to us this interim report, our intention was to hold onto the interim report on the final report. We have been compelled to make available this interim report to the general public. This is so that they know where the problem is, and the problem is that the CBN has denied us consistently the documents that we need to complete this assignment,” Jibrin explained.
The Ways and Means facility is a loan mechanism through which the CBN finances the federal government’s budget shortfalls. This method of financing government deficits often leads to macroeconomic instability, resulting in inflation and high exchange rates due to the excess liquidity injected into the economy. The CBN law limits advances under Ways and Means to five percent of the previous year’s revenue.
In an effort to address the situation, CBN Governor Olayemi Cardoso declared in February that the bank would no longer grant Ways and Means advances to the government “until all outstanding debts are refunded.”
GI’s Legal Corner
Under the Central Bank of Nigeria Act 2007, the CBN’s authority to grant Ways and Means advances is restricted to prevent excessive monetary expansion that could harm the economy. Section 38 of the Act sets a clear borrowing limit, but the lack of transparency in how those limits were observed or breached raises significant constitutional and fiscal accountability concerns.
If the CBN fails to comply with legislative limits or withheld financial records from the National Assembly, it could violate legislative oversight powers, as outlined in Section 88 of the Nigerian Constitution.
This situation emphasizes the need for monetary policy independence while ensuring public accountability, reinforcing the importance of adhering to fiscal laws to maintain Nigeria’s economic stability.
Dear readers, we really need your support to keep on serving you with authoritative, truthful, and juicy stories everyday. For your support, please reach out to the editor @gavelinternational66@gmail.com