Senate begins probe of Buhari govt’s N30tr loan, Ajaokuta Steel
Proposes six-year term for CBN gov, deputies
The Senate, yesterday, appointed Jibrin Isah (Kogi East) as Chairman of the Adhoc Committee to probe the humongous N30 trillion ‘Ways and Means’ released as loan to the Federal Government during the former President Muhammadu Buhari administration.
The constitution of the panel at plenary is a follow-up to the adopted resolutions last Tuesday on the need to probe the matter.The ‘Ways and Means’ is an overdraft taken directly from the Central Bank of Nigeria to solve contingency needs of the nation following approval and directive of the executive arm of government, which would have to be ratified by parliament.
However, during a debate on the matter last week, the Red Chamber was thrown into a rowdy session when the motion was raised without details of how the fund was spent, a development that prompted Ali Ndume (Borno South) to demand details in deference to parliamentary rules.
In his remarks before announcing membership of the committee, the Deputy Senate President, Jibrin Barau, who presided over the plenary, lamented alleged reckless spending that stirred the inflation in the land. He stated ‘Ways and Means’ would continue to be recorded in the balance sheet of the apex bank until it is completely liquidated.
Barau charged the panel to do a thorough job with a view to recovering the fund. He said: “According to statistics, broad money supply, which is a key parameter for inflationary trends, increased from N78.3 to 78.4 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.”
Other members of the committee are: Ekpeyong Asuquo;
Mohammed Tahir Monguno; Victor Umeh; Olamilekan Adeola; Sani Mohammed Musa; Aliyu Wadada; Abdul Ningi and Ipalibo Banigo Harry
They were given four weeks to turn in their report for legislative debate.
SIMILARLY, another ad hoc committee was raised to investigate alleged corruption and inefficiency at the Ajaokuta Steel Company Limited and National Iron Ore Mining Company in Kogi State from 2008 till date.
The chamber also resolved to invite and interface with relevant Ministries, Departments and Agencies (MDAs), as well as other critical stakeholders in the steel sector to obtain relevant information for a comprehensive report on the two plants.
Sponsored by Natasha Akpoti (Kogi State), the motion regretted that Nigeria currently spends approximately $3.3 billion yearly on importing steel despite abundant natural ore resources.
IN another development, the upper legislative passed for second reading a bill seeking to peg the tenure of CBN governor at six years.In his lead debate, Tokunbo Abiru (Lagos East), who wants the CBN altered, said there are also challenges in monetary policy implementation occasioned by fiscal dominance and the rapidly changing financial landscape.
He added that the proposed amendments are to strengthen the bank to discharge its primary mandate of maintaining monetary and price stability in support of government’s economic growth objectives.
Other proposed amendments are a single non-renewal term of six years for the deputy governors among others.
After deliberation the bill was referred to the Committee on Banking Insurance and other Financial Institutions for further legislative action, and they are to report back to plenary in two weeks.
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