The Senate has passed a bill that seeks to amend the Central Bank of Nigeria (CBN) Act to increase the bank’s advances to the Federal Government from five to a maximum of 15 percent. Senator Gobir Abdullahi (APC-Sokoto) sponsored the bill.
The bill’s passage followed its presentation and consideration during a plenary session on Saturday. Section 38 of the CBN Act had previously stated that “Notwithstanding the provisions of the section 34(d) of the act, the bank may grant temporary advances to the Federal Government in respect of temporary deficiency of budget revenue at such a rate as the bank may determine.” However, it also stated that the total amount of such advances outstanding would not exceed five percent of the previous year’s actual revenue of the Federal Government.
Speaking during the debate on the bill, Mr. Abdullahi said, “This amendment is very consequential and it needs the support of us all, it is to enable the federal government to embark on very important projects that will inflate and rejig the economy.” He added that the bill’s objective is to enable the federal government to meet its immediate and future obligations in approving the ways and means to advance the federal government by the CBN.
The Senator urged his colleagues to support the bill’s passage so the federal government could undertake crucial projects that would help immolate and stimulate the economy.
All in all, this move will give room for more tempered economic policies by the government, enabling better management of the Nigerian economy for a better future.
