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From Fred Itua and Ndubuisi Orji, Abuja
There was a rowdy session in the House of Representatives over approval of 10 percent advances to the Federal Government by the Central Bank of Nigeria (CBN).
The House became charged during the consideration of a bill seeking to amend the CBN Act to increase the total advances by apex bank from five to a maximum of 15 percent, in the Committee of the Whole.
The minority leader, Kingsley Chinda, during the clause by clause consideration of the bill, had kicked against the increase in the CBN’s advances to the Federal Government from five to 15 percent. Chinda proposed that rather than increase the advances, it should be reduced to two percent.
The lawmaker said that would help to enhance transparency and accountability. He added that raising the advances to 15 percent would erode the powers of the parliament.
“I suggest that we amend clause two to read two percent for purposes of accountability. I so move.
“The heart of what we have been talking about is the issues of accountability and transparency. Allowing the Central Bank to advance 15 percent of the entire budget, will not only erode our own powers as an assembly, but it will also give a lot of latitude for discretion, which is not too good for us. And that is why I think that we should reduce from the five percent that we presently have.”
However, Chairman, House Committee on Finance, James Faleke, argued that the increase in the CBN’s advances to the government was imperative for the survival of the economy.
“Let me say that the present Act says five percent, which we passed in this House. It was the entire National Assembly that passed it. What we are saying is for the survival of the economy. For us to move on, we need to move away from where we are now, which was abused by the previous CBN.
“We need to move to 15 percent, which is subject to amendment and you now want to downgrade again to two percent, which is already below the belt. The matter of transparency, of course the committees have the responsibility to look at the books. It is not by bringing down the rate that you will bring transparency. No, I don’t think so,” he stated.
As Faleke was speaking, opposition lawmakers shouted ‘no.’ However, the former deputy speaker, Idris Wase, in his intervention, proposed that the CBN’s advances should be pegged at a maximum of 10 percent.
When the matter was put to vote, the Deputy Speaker, Benjamin Kalu, who presided over the Committee of the Whole ruled in favour of 10 percent.
Immediately Kalu hit the gavel, majority of the opposition lawmakers, led by Chinda walked out of the chamber. Some of them, including the Minority Whip, Ali JC Isa, returned to the chamber shortly after.
When the House reverted to plenary, attempts by Kalu to report progress from the Committee of the Whole for adoption was greeted with the shouts of ‘no, no’ by the opposition lawmakers.
Nonetheless, the deputy speaker continued. When he mentioned that the Committee of the Whole approved a maximum of 10 percent for the CBN’s advances to the Federal Government, there was chaos on the floor.
While the opposition lawmakers, most of whom were standing, shouted ‘no, no,’ others were shouting ‘Point of Order, Mr Speaker.’ On the other hand, the All Progressives Congress (APC) members were shouting ‘carried, carried.’
Amid the chaos, the Deputy Speaker called on the Chairman, Rules and Business, France Waive to move forward for the third reading of the bill.
After the bill was read for the third time and passed, Kalu called on the minority whip to second a motion by the Chief Whip, Bello Kumo for the adoption of the votes and proceedings, but Isa refused to second the motion.
When the minority whip refused to respond to repeated calls to second the motion, Kalu invited Saidu Abdullahi, an APC member to second the motion.
However, the Senate speedily amended the Central Bank of Nigeria (CBN) Act to allow the Federal Government to get 10 percent as against the former five percent.
The initial request by the sponsor of the Bill and leader, Opeyemi Bamidele, was that advances from the CBN to the Federal Government be raised to 15 percent.
Leading the brief debate on the bill, Bamidele said: “The very essence of this Bill is to enable the Federal Government meet its immediate and future obligation due to the government’s increasing needs for funds to finance the budget deficits and other expenses.”
Bamidele explained that advances from the CBN to the Federal Government were essentially loans that the apex bank provides to the government to help it meet its financial obligations. “These advances are typically short-term and are expected to be repaid by the government.”
According to the Senate leader, the passage and enactment of the amendment into law would provide immediate funds to address budget shortfalls and finance essential government expenditure.
He said it also helps to maintain financial market stability by preventing the government’s default on its obligation.
Bamidele further stated that the increase from five to 10 percent would inject money into the economy, stimulate economic activity and potentially create jobs.
“It enables the government to support critical sectors like agriculture, health care and infrastructural development; and lower the government’s borrowing cost by providing cheaper funds for the traditional borrowing method.
“This amendment is very consequential and it needs the support of us all. This is to enable the Federal Government to embark on very important projects that will inflate and rejig the economy, especially the Renewal Hope Infrastructural Development across the country,” he stressed.
