Senate To Investigate N30trn Ways and Means Utilisation By Buhari Administration

Senate has set up an ad-hoc committee to investigate N30 trillion
Ways and Means expenditure approved by the 9th National Assembly for former President Muhammadu Buhari’s adminstration.

The resolution of the red chamber was sequel to the adoption of recommendations of a report by its Joint Committee on Banking, Finance, National Planning, Agriculture and Appropriations on interaction with the Federal Government Economic Management Team on state of the economy during plenary in Abuja.

The report was presented by Co -Chairman of the Joint Committee Sen.Abdulahi Yahaya.

Yahaya said the Nigerian economy was currently facing challenging times largely caused by distortions resulting from major fiscal and monetary policy actions of previous governments notably the huge direct lending to the federal government by the Central Bank of Nigeria to the tune of about N30 trillion.

He also listed operation of an opaque fuel subsidy regime and series of interventions by the Central Bank of Nigeria, CBN which seemed not well targeted as the issues.

This, he said resulted in rising inflation especially food, and persistent naira depreciation.

“Expectedly, the on-going efforts by the current administration to correct the anomalies of the past have come with some painful economic conditions which need to be ameliorated”.

“In reaction to the current economic hardship Nigerians are going through, the Joint Senate Committee on Banking, Insurance and other financial Institutions, Finance, National Planning, Agriculture and Appropriation, held an interactive session with key members of the Federal Government’s economic management team”.

He said the aim was to ascertain the true state of affairs of Nigeria’s economy, the nature of the challenges and measures being put in place to address them within the shortest possible time.

According to him, the recommendations from the interaction was the urgent need to bring down inflation, boost food production and stabilize the economy through proper coordination of fiscal and monetary policies.

He urged government to prioritise liquidating the N30 trillion Ways and Means obligation of the federal government through a quicker resolution mechanism than the current securitization arrangement of over a period of 40 years.

According to him, the CBN should put in place measures to ensure the repayment of various intervention programmes by the beneficiaries after a thorough evaluation of their performance.

“The ‘quasi-fiscal measures totalling N10 trillion of which the Anchor Borrower programme is a major part should be further interrogated by the Committee with a view to plugging loopholes in future development finance activities of the Bank”.

Yahaya also recommended further interrogation of the 2.4 billion dollars forex transactions adjudged invalid out of the outstanding 7 billion dollars obligations with a view to identify culprits and mete out appropriate sanctions to serve as a deterrent.

He also called for rapid social safety net interventions to provide interventions in the area of food and transportation to alleviate sufferings of vulnerable Nigerians and mitigate the impact of economic challenges.

The committee chairman also urged the CBN to ensure compliance with provisions of the Act in respect of Ways and Means and accountability through timely submission of its budget, financial statements and report of its activities to the President and National Assembly as stipulated.

By James Itodo, Edited By Grace Namiji