The decision of the Senate to investigate Ways and Means expenditure of N30 trillion under the last administration of President Muhammadu Buhari tore the Senate apart at plenary on Tuesday.
Trouble started when the upper chamber received and considered the report of its Joint Committees on Banking, Insurance and other Financial Institutions (BIOFI), Finance, National Planning, Agriculture and Appropriation on the interaction with the Federal Government’s Economic Management Team on the state of the economy.
The report was presented by the former Senate Leader, Senator Abdullahi, Yahaya Abubakar (Kebbi North).
One of the recommendations, which was compliance and transparency of economic actions said “the CBN should 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.
Senate President Godswill Akpabio, said “at the moment now I think we are at the threshold where nothing should be ruled out because Nigerians want food. The hungry population is an angry population and so we must do everything possible to put food on the table of Nigerians.
I want to commend the Joint Committee for the fantastic they have done for the Senate. I’m sure a lot of Nigerians were not even aware that the Senate has taken proactive steps by setting up this kind of joint committee to meet with the economic management team of the Federal Government to discuss ways and means of tackling the current economic situation and particularly ensuring food security and ameliorating the suffering that Nigerians are currently going through.
The situation is evolving on a daily basis. You can see a lot of sponsored protests here and there, but most of those people are not aware of the efforts being made by this Senate to tackle the situation together wit the joint management team of the Federal Government.
There is no father that will want to see his child sleep in the night without food. That is why we cannot limit our discussion to say we will not import food. Wherever we can find food to put on the table of Nigerians, we shall do so.
It’s an emergency situation. Like Senator Lalong pointed out, it’s an uncommon situation which has been exacerbated by many factors from Covid-19 to insecurity, inflation, to what Senator Abiru pointed out, the Ways and Means expenditure of N30 trillion such that put so much pressure the CBN and left a very big gap in the financial situation such that if this government that inherited the situation tries to fill the gap it means people will not eat.
The Deputy Senate President, Barau Jibrin tried vehemently to rationalise that what is happening in Nigeria is not in isolation as it a global economic downturn, adding big economies like UK is in recession.
However, when the Senate Chief Whip, Ali Ndume rose to speak, he warned his colleagues that “if we don’t take this problem seriously, God forbid.
Ndume said what the Senate approved towards the end of the last Buhari administration as Ways and Means was N23 trillion and N819 billion supplementary budget.
He said what the upper chamber did by approving the Ways and Means after the money was spent was “illegal”, adding that the Senate has no right to go and investigate after the money was spent. He categorically denied that he was not there, although many senators chorused “you were there”.
Akpabio the ssarcastically said “Senator Ndume cannot remember being there when Ways and Means was approved”.
Again, the Deputy Senate President, Barau Jibrin tried unsuccessfully to explain what Ways and Means was all about.
“Ways and Means was an over draft to the Federal Government to assist the government because of certain emergency. If President Bola Tinubu….”, but Akpabio interjected him saying “President Tinubu can’t bring this. This Senate cannot be a rubber stamp to anyone.
“What you did then put the country in a mess”.
Akpabio the asked Senator Ahmed Lawan, President of the 9th Senate that approved the controversial Ways and Means to comment on it.
Lawan said first, “there was nothing the National Assembly can legislate on that it cannot investigate”.
Secondly, he said “what the 9th Senate approved as Ways and Means was N22 trillion and additional N819 billion” for decayed infrastructure.
The Yobe North Senator then took a swipe at the present administration, what Nigerians need today is good and security. We are the present and the present is not pleasant.
But Akpabio would not take none of that, as he said “Ways and Means put us in the mess we are today”, describing it as “expenditure without details”.
Other recommendations of the joint committee include:
“Insecurity, climate change, inadequate power, energy and transport infrastructure which all contribute to rising inflation in Nigeria.
On Monetary and Fiscal Measures, the committee recommended
“Arrest Inflationary pressure through Liquidity surfeit reduction: The government should prioritize liquidating the N30 trillion Ways and Means obligation of the federal government through a quicker resolution mechanism than the current securitization arrangement over a period of 40 years. In addition, the CBN should put in place measures to ensure the repayment of various intervention programmes by the beneficiaries after a thorough evaluation of their performance. These will help reduce money supply.
“Also, the ‘quasi-fiscal measures totaling N10 trillion of which the Anchor Borrower programmer is a major part should be further interrogated by the Committee with a view to plugging loopholes in future development finance activities of the Bank.
On Foreign Exchange Management: The Committee commended the Bank for some of the measures put in place to address exchange rate volatility and improve liquidity in the FX markets including clearing outstanding valid obligations, introducing new operational mechanisms for BDCs and IMTOs and enforcing the Net Open Position limit. However, in order to ensure transparency, and boost confidence in the market, there is need for the Committee to further 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”.
Therefore, the Senate finally resolved that a committee will be set up to investigate Ways and Means and all intervention programmes.
By Haruna Salami
