Ways and Means” are loans or advances by the CBN to the Federal Government to enable it to cater for short-term or emergency finance to fund delayed government expected cash receipt of fiscal deficits.
The Upper Chamber has asked the CBN to put in place measures to ensure the repayment of various intervention programmes by the beneficiaries after a thorough evaluation of their performance as these would help reduce money supply.
Positions of the Senate were taken on Tuesday the consideration of Report of the Joint Committees on Banking, Insurance and Other Financial Institutions, Finance, National Planning, Agriculture and Appropriation led by Senator Abdullahi Yahaya Abubakar, PDP, Kebbi North.
As the lawmakers await the composition of the Committee that would carry out the holistic investigation, the Senate has also resolved to probe the ‘quasi-fiscal measures totalling N10 trillion of which the Anchor Borrower programme with a view to plugging loopholes in future development finance activities of the Bank.
The Upper Chamber as part of move to ensure transparency, and boost confidence in the market, it has resolved to interrogate the $2.4 billion Forex transactions adjudged invalid out of the outstanding $7 billion obligations with a view to identifying culprits and meting out appropriate sanctions to serve as deterrent.
The yet to be constituted Committee would also carry out a holistic investigation into the sudden revision of the rate calculation methodology by the FMDQ on Monday January 29 2024 and the resultant sharp increase in the NAFEM rate from N891/5 to N1,348.63 which significantly adversely impacted the value of dollar- denominated obligations, adding that the step would help safeguard investments, protect jobs and economic agents in Nigeria with foreign currency exposure.
Adopting the recommendations of the Yahaya Abdullahi led Committee, the Senate has urged the CBN to ensure compliance with the 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 in the Act, just as the apex bank was asked to provide a legal framework for effective collaboration of fiscal and monetary policies.
Also as a way of addressing the present challenges in the country, the Senate has resolved to engage with security agencies to combat insecurity and secure food supply across the country, especially in states of Niger, Benue, Kebbi, Plateau, Zamfara, among others.
The Upper Chamber has called for an improved market access for farmers by developing transportation networks, establishing market infrastructure, and facilitating linkages between farmers and markets.
The Committee in its conclusion said, “the persistent inflationary trend and the fall of the naira underscore the urgency for proactive measures. The findings from the session illuminate the multifaceted factors contributing to these challenges. As this report indicates, a collaborative effort between the Executive and the legislature, and between the fiscal and monetary authorities is imperative to mitigate the risks associated with a potential hyperinflation and the crash of the naira.”
In his remarks, the President of the Senate, Senator Godswill Akpabio who noted that thorough probe must be carried on the Ways and Means where details were never provided even as requested by the then 9th Senate, said that Ways and Means, interest rate, money to Manufacturers, money to DISCOS, among others must be probed properly.
According to Akpabio, he knew that a day will come when people will be called to explain the Ways and Means because government is continuum as the Senate has the right to probe, just as he said that what was done in the 9th Senate has put the Nation in a Serious Mess.
The President of the Senate however, demanded information to be given, stressing that the 10th Senate would not act as a rubber-stamp.
Akpabio said, “We are where we are today as a result of illegal things and I think it is necessary that details of Ways and Means be provided.”
Earlier, there was a rowdy session at the hallowed Chamber during debate on the report when the Senate Chief Whip, Senator Ali Ndume, APC, Borno South accused the Senate of lacking powers to approve funds already spent.
According to Ndume, the Senate had acted illegally by allowing funds drawn from CBN, and already expended to be brought to the parliament for approval.
Ndume, citing relevant sections in the 1999 Constitution of the Federal Republic of Nigeria as amended, accused the Senate of lacking powers to approve funds already spent, adding that details of the Ways and Means were never provided before the Senate.
Ndume argued that he has never been present at a plenary where the Ways and Means was approved in advance, but that the Executive was expected to provide details of the expenditures of the funds after they were used.
He noted that the report presented lacked details, saying, “Mr President, I was not part of the plenary that gave the nod for Ways and Means but the detail of funds spent was not provided. This is illegal.”
Countering Ndume, Senator Mohammed Danjuma Goje, APC, Gombe Central argued that what Ndume said was not the truth as the Senate has the power to approve.