News Flash: Senate Intensifies Probe Into N30-Trillion CBN Loan To Buhari-Administration (Details)

News Flash: Senate Intensifies Probe Into N30-Trillion CBN Loan To Buhari-Administration (Details)

The Senate has intensified its investigation into the N30 trillion loans granted to former President Muhammadu Buhari’s administration by the Central Bank of Nigeria (CBN) under the Ways and Means Advances window. This follows the Senate’s decision last week to extend the ad-hoc committee’s assignment by two months, allowing further time to scrutinize the loan and its utilization before submitting its report.

Senator Isah Jibrin (APC-Kogi East), chair of the Adhoc Committee, requested the extension last Thursday, stating that relevant records from certain government agencies involved in expending the funds were still pending.

Senator Jibrin, who also chairs the Senate Committee on Customs and Excise Duties, told journalists in Abuja on Saturday that the extension would enable the committee to intensify its investigation. “Most of the relevant agencies have been contacted, and their documents are being thoroughly scrutinized regarding the spending of the disbursement from the N30 trillion Ways and Means Advances,” he said.

“Given the sensitive nature of this national assignment, the committee is conducting a very thorough investigation, avoiding any rushed conclusions.”

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The Senate has promised to put more pressure on the few agencies that have not adequately responded to vital information requests. Should these agencies continue to delay, their heads may be summoned.

The extended timeframe aims to ensure that the committee delivers a comprehensive investigative report by September on the disbursement and utilization of the N30 trillion Ways and Means Advances.

The Ways and Means Advances is a loan facility by which the CBN finances the federal government’s budget deficits or delayed payments. This financing method typically leads to macroeconomic instability, inflation, and high exchange rates due to excess liquidity in the economy.

The CBN Act limits loans under Ways and Means to five percent of the previous year’s revenue, but this has been frequently breached over the years. In February, CBN Governor Olayemi Cardoso declared that the bank would no longer grant Ways and Means Advances to the government until all outstanding debts were repaid, as a measure to address the situation.

Published on July 8, 2024, by Destiny.jnr