ABUJA: 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 “Ways and Means” provisions under the Central Bank of Nigeria (CBN) Act are financial mechanisms that enable the CBN to temporarily assist the federal government with funding. Here’s what they mean:
- Purpose: “Ways and Means” are used to address short-term financial gaps faced by the government, such as when revenue falls short of immediate expenditure needs.
- Limits and Conditions: The CBN Act sets limits on these advances to prevent excessive borrowing and potential inflation. These funds are intended for short-term use and must be repaid within a specific timeframe.
- Interest Rates and Terms: The terms, including interest rates, are determined by the CBN to ensure borrowing is cost-effective while maintaining financial stability.
- Transparency and Reporting: The CBN must report on the amounts and terms of these advances to ensure transparency and accountability.
(CBN) Act are financial mechanisms that enable the CBN to temporarily assist the federal government with funding. Here’s what they mean
Opposition parties otherwise known as 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
The members of the opposition in the green chamber staged the protest during today’s plenary session after lawmakers of the All Progressives Congress (APC) amended the Central Bank of Nigeria (CBN) Act to increase the Ways and Means loans obtainable by the Federal Government from the apex bank.
The Minority Leader of the House, Kingsley Chinda, had opposed to the passage of the amendment, saying that it would erode the powers of the National Assembly and give room for too much discretionary power to the Central Bank of Nigeria. (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.
