March 03, (THEWILL) – It is hard to see the end of the probe launched by the Senate into the payment of over N30 trillion Ways and Means secured from the Central Bank of Nigeria, CBN, by the immediate past government of the federation in the last 10 years.
One thing that is certain for now is that the senior lawmakers have the support, even if subtle, of the presidency. How far this alliance goes with the inquiry will, in all probability, depend on the politics tied with the probe, the alliances of interests and how far the current government reforms gain traction with the people.
A presidency source who spoke to THEWILL in confidence last weekend said that what is coming out of the Central Bank of Nigeria, CBN, (considering the revealed financial mismanagement by the presidential special investigator) is so alarming that the immediate reaction of the relevant authorities is to set in motion some structure to manage the “sickening malfeasance. Just printing money to serve the elite.” Will the truth ever come out?
Recall that before he left office in May 2023, former President Muhammadu Buhari had left a warning, more or less a threat, in a January 2023 interview, for anyone who dares to call him to question his government’s policies.
“Nobody should ask me to come and give any evidence in any court, otherwise, whoever it is would be in trouble because all important things are on record. I made sure about that. Important issues are all on record.”
Well, D-day is here. Given the way some of Buhari’s ministers, especially the former Minister of Humanitarian Affairs and Disaster Management, Sadiya Umar Farouq, is being quizzed by the Economic and Financial Crimes Commission, EFCC, over alleged embezzlement of billions of Naira, it is only natural that the searchlight will eventually be beamed on the former President’s ‘Ways and Means.’
At any rate, four weeks from now, during which the Senate ad hoc committee will have to carry out a holistic investigation into the matter and report at plenary, will provide a sense of direction.
Meanwhile, investigation shows that the committee to probe the humongous N30 trillion Ways and Means, has some interests to contend with despite its strategic inter-party nature.
Comprising majority of Senators from the governing All Progressives Congress, APC, namely, Senator Jibrin Isah, APC, Kogi East as Chairman; Senators Asuquo Ekpenyong, APC, Cross River South; Mohammed Tahir Monguno, APC, Borno North; Olamilekan Adeola, APC, Ogun West; and Sani Musa, APC, Niger East, it also has members drawn from three other political parties.
They are Victor Umeh, Labour Party, LP; Anambra Central; Aliyu Wadada, Social Democratic Party, SDP; Nasarawa; Abdul Ningi, Peoples Democratic Party, PDP, Bauchi Central and Ipalibo Banigo Harry, PDP, Rivers West.
The composition of the committee followed the Senates’ adopted resolution of the need to probe the ‘Ways and Means’ of former President Buhari’s administration: In other words, “ the loans or advances that the CBN give to the Federal Government for short-term or emergency finance to fund delayed government expected cash receipt of fiscal deficits.”
The debate that preceded the constitution of the probe committee gave an inkling into the underhand dealings surrounding the CBN loan.
One the one hand were Senators who thought the loan was shrouded in secrecy and on the other were those who felt attention should be paid to the current hardship in the land and ways to end it.
In the first group is Senator Ali Ndume, APC, Borno South, who insisted that details of ‘Ways and Means’ failed the test of parliamentary rules. He disclosed that the government then merely informed the lawmakers of their intention, but hid the figures and records.
In concurrence with Ndume, Deputy Senate President, Jibrin Barau, bemoaned the manner the loan was handled as one of the reckless ways of spending that had caused inflation in the country. He urged the probe committee to be meticulous in its work to ensure the money was completely liquidated in the accounts of the CBN.
He said, “According to statistics, broad money supply, which is a key parameter for key inflationary trends, increased from N78.3 to N78.4 trillion in 2023, the highest ever recorded in Nigeria.
‘’The Central Bank of Nigeria’s Ways and Means which provides direct lending to the Federal Government of Nigeria causes unprecedented liquidity in the economy and the current inflationary pressure that we are experiencing.
“The financial obligation to the CBN now stands at N30 trillion. The inability to repay this temporary accommodation by the Federal Government led to the regularisation of a 40-year loan at 9 percent interest per annum.
“By implication, this debt will appear in the balance sheet of CBN for the next 40 years until liquidated. It is, therefore, imperative to interrogate the loans of the N30 trillion Ways and Means with a possibility of recovering whatever possible.”
Also in the gaze of the ad hoc committee is the N10 trillion expended on the Anchor Borrowers Programme and the $2.4billion forex transaction out of $7 billion obligation made for that purpose.
Leading the pack of defenders is former President of the Senate, Ahmed Lawan under whose watch the Ways and Means advances were approved for the Muhammadu Buhari Administration.
Lawan was quick to point out that the probe would serve no useful purpose. He said the approved amount was N23 trillion whereupon his successor and current President of the Senate, Godswill Akpabio, corrected, saying the additional N7 trillion was accumulated interest. For Lawan, what was paramount in the minds of Nigerians was how to put food on their table.
“Nobody in this chamber should suggest that we should not look into anything that we feel is in the public interest, but let me say this very clearly, what Nigerians want today is food and security. How are we going to provide food for Nigerians and protect their lives,” he said.
Akpabio, however countered that the country was undergoing economic challenges because of illegal financial transactions undertaken by the previous administration.
These accounts and records came out during the lawmakers’ oversight of the Economic Management Team of the Federal Government on the state of the economy a fortnight ago.
The Joint Committee on Banking, Insurance and Other Financial Institutions had drawn a report of that interaction between the economic team and the joint committee, which later became a subject of debate at the Senate.
According to the Chairman of the joint committee, Senator Yahaya Abdullahi, during a presentation of the report, the ways and means loan was one of the major factors that caused the current economic hardship in the country
He urged the Federal Government to settle the N30 trillion debt in order to reduce money supply and advised the CBN to ensure that beneficiaries of various intervention programmes who failed to utilise the funds judiciously should be made to refund the monies given to them.
In its report, the joint committee specifically mentioned that monetary policy under Buhari, especially the Ways and Means Advances, instigated the current inflationary pressures on the nation’s economy.
No Mean Feat
After all has been said and done, the question remains whether the Senate will be able to make any headway with the probe.
A one-time President of the Senate, Bukola Saraki, thinks so, even if symbolically. In a tweet in his X platform, he said what the 10th Senate has done with the matter approximates the oversight function of his tenure during Buhari’s first tenure which earned him and his colleagues name calling and attacks by the government and its supporters.
He said, “I must acknowledge the 10th Senate’s effort in even deliberating on these crucial issues.
“This moment stands as a powerful reminder that the legislative arm of government must effectively play its constitutional role at all times in the interest of the people they represent, despite the personal sacrifices that may need to be made. Only then will the public and the people truly benefit.
The aforementioned presidency source told THEWILL: “This is a cleaning process in the CBN and if properly handled will affect our financial stability positively.”
About the Author
Amos Esele is the Deputy Editor of THEWILL Newspaper. He has over two decades of experience on the job.
