The House of Representatives has increased the limit within which the federal government can borrow from the Central Bank of Nigeria (CBN).
In an emergency session on Wednesday, the House passed a bill to amend Section 38 of the CBN Act, raising the threshold from five per cent to 10 per cent.
The House removed the five per cent in the principal Act and replaced it with 10 per cent.
“(1) Notwithstanding the provisions of section 34 (d) of this Act, the Bank may grant temporary advances to the Federal Government in respect of temporary deficiencies in budget revenue at such a rate of interest as the Bank may determine. The total amount of such advances outstanding shall not at any time exceed ten per cent of the previous year’s actual revenue of the Federal Government,” the proposed Section 38 reads.
The amendment followed the consideration of a report submitted by the House Leader, Julius Ihonvbere, to the Committee of the Whole, chaired by Deputy Speaker Ben Kalu.
Controversy over “ways and means”
In the last couple of years, ways and means have become highly controversial due to alleged abuse by the erstwhile Muhammadu Buhari administration.
Before leaving office, Mr Buhari attempted to securitise over N23 trillion borrowed from the CBN. Both chambers of the National Assembly are currently investigating the utilisation of the ways and means approved under the previous administration.
Meanwhile, former CBN Governor Godwin Emefiele is facing prosecution over the ways and means and other charges.
Walkout by opposition lawmakers over the bill
The original bill proposed by Mr Ihonvbere set the threshold at 15 per cent. However, some lawmakers opposed the proposal.
The Minority Leader, Kingsley Chinda, proposed that the threshold should be reduced to two per cent instead of increasing it.
However, former Deputy Speaker Idris Wase moved an amendment for the threshold to be reduced.
When the amendment was put to a voice by Mr Kalu, some opposition lawmakers tried to raise points of order but were shut down.
The deputy speaker, however, ruled in favour of those who supported the amendment, forcing some of the opposition to stage a walkout in protest.
Mr Kalu subsequently suspended the rules to allow the bill to be read for the third time and transmitted to the president for assent.
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