The Senate yesterday amended the Central Bank of Nigeria (CBN) Act to increase the borrowing limit the bank can offer the Federal Government from five to 10 percent. The borrowing, popularly called Ways and Means, is a loan facility through which the CBN finances government’s budget shortfalls.
   
The Senate President, Godswill Akpabio, announced the increment during an emergency plenary after many of the senators supported it through voice votes. It was read for the first and second time and committed to the Committee of the Whole where the clauses were considered before final passage.
   
The Senate President, who reconvened plenary yesterday after senators went on recess, said the increase would support the government to finance its shortfalls.
   
In March 2022, the Debt Management Office (DMO) announced that the Federal Government borrowed a total of N18.16 trillion from the CBN. The debt as of then was more than 40 per cent of the money supply in the economy.
   
In February, the Senate constituted an ad-hoc committee chaired by Isah Jibrin (APC, Kogi East) to probe the Ways and Means loan amounting to N30 trillion obtained by the administration of former president Muhammadu Buhari from the CBN. The committee has yet to submit its report.
   
Like the Senate, the House of Representatives also amended the CBN Act to raise Ways and Means from five to 10 per cent. President Tinubu is expected to sign the amended bill into law.
   
It was a rowdy scene at the emergency plenary session called by the Speaker of the House of Representatives, Tajudeen Abbas, on Wednesday. The debate centred on a bill seeking to raise the Ways and Means cash advances from CBN from five to a maximum of 15 per cent.
   
Members elected on the platform of seven opposition parties staged a walkout during plenary after an amendment by the minority leader, Kingsley Chinda, to reduce the Ways and Means to two per cent was rejected.

It was however reduced to 10 per cent after some lawmakers raised objections. The move came a few months after the CBN governor, Olayemi Cardoso, declared that the apex bank will no longer give Ways and Means to the President until the previous loans are repaid.
   
The House had dissolved into Committee of the Whole to consider the report on the bill, with the Deputy Speaker, Deputy Speaker, Benjamin Kalu as the chairman. 
   
When the bill was put to debate by Kalu, minority leader, Kingsley Chinda, advised the house to reduce the loan limit to two per cent to ensure accountability and transparency. But chairman, House Committee on Finance, James Falake, quickly interjected, insisting that the present five per cent was not enough for the government to rely on. 
   
After the debate, the deputy speaker put the motion of amending the bill to reflect 10 per cent to voice vote. Though the voice of nays was louder than those who agreed, the deputy speaker said the ‘ayes’ have it. 
   
At this point, some lawmakers belonging to opposition parties staged a walk out to register their pleasure despite pleas by the deputy speaker that the increase was also to allow the government fund the new N70,000 minimum wage. 

WORRIED over some legal issues that required reconsideration, the House of Representatives on Wednesday repealed and re-enacted the 2024 Appropriation Act (amendment) bill which increased the 2024 budget to about N35 trillion. The National Assembly had last week passed the supplementary bill seeking to increase the 2024 Appropriation Act from N28.7tn to N35.06tn. 
   
A breakdown of the proposed N35.06tn for the 2024 fiscal year showed that N1.74tn is earmarked for statutory transfers; N8.27tn for debt service; N11.2tn for recurrent expenditure while N13.77tn is slated as a contribution to the Development Fund for capital expenditure for the year ending December 31, 2024.