Politics
Senate In Stormy Session Over Buhari’s N23.7trn ‘Ways And Means’
The Senate was in disarray for several hours, on Wednesday, over how to restructure the payment of N23.7 trillion “Ways and Means” secured from the Central Bank of Nigeria, CBN, in the last 10 years.
President of the Senate, Senator Ahmad Lawan, forced the lawmakers to go into a closed-door session to stop the chaos from degenerating into a brawl.
“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.
Trouble started when Chairman of Senate Committee on Finance, Senator Olamilekan Adeola (APC, Lagos West), came up with a report on Ways and Means 2022 as requested by President Muhammadu Buhari, last week.
Soon after Adeola’s presentation, Senator Apiafi (PDP, Rivers West), raised a point of order, with very strong argument that President Buhari’s request was unconstitutional and what the Senate was about to do by considering the request was unknown to Nigerian law.
Tension engulfed the Senate when the Senate President, Lawan, ruled her out of order on the grounds that the report should be presented and read by the committee chairman for lawmakers to contribute to the debate.
President Buhari had last week written to the Senate, requesting the approval of restructuring of N23.7 trillion Ways and Means advances given to the Federal Government by the CBN.
The President in a letter read by Senate President during the Plenary session last Wednesday, explained that the ways and means balances as of December 19, 2022, were N23.7 trillion.
President Buhari further stated in the letter that he had approved the securitisation of the Ways and Means balances along the following terms: Amount N23 .7 trillion; Tenure 40 years; Moratorium on principal repayment, three years; and Pricing interest rate nine percent.
The Senate had in line with parliamentary procedure, given the request expeditious consideration by passing it for second reading and mandating its committee on Finance to work on it.
Lawan’s ruling annoyed Senator Apiafi and some senators, thereby leading to a charged atmosphere in the chamber.
At this point, Senator George Sekibo (PDP, Rivers East) raised a point of order, calling on Lawan to step down consideration of the report until lawmakers get more details on what the funds were used for.
In a strong move to stop approval of the report without scrutiny, Senator Sekibo rose through constitutional orders by citing Sections 80, 83, Section113(1) of the 1999 Constitution and Section 38 of the CBN Act to kick against the request.
Sekibo said: “We came into this chamber today and were given the report on N23.7trillion, which has been spent in the past 10 years. Whether it is 10 years or five years, whatever it is, the issue is that such payment, when the loans are taken, the Senate should be informed, we should be abreast with the information that such money is going to be taken because it is being taken on behalf of the people of Nigeria and we are entrusted with the power to make laws.
“According to the constitution, we can appropriate. They brought this up without details for us to approve.
“Section 80 of the 1999 constitution as amended provides that all revenues or other monies raised or received by the federation, not being revenue and other monies payable under this constitution or any Act of the National Assembly into any other public fund of the federation established for a particular purpose, shall be paid into and form one consolidated revenue fund of the Federation.
“No money shall be withdrawn from the consolidated revenue fund of the Federation except to meet expenditure that is charged upon the fund or where the issue of those monies has been authorised by an appropriation act, supplementary act or an act passed in pursuance of Section 81 of the constitution”.
“No money shall be withdrawn from any account other than the consolidated revenue fund of the Federation unless the issue of those monies has been authorised by the Act of the National Assembly.
“Section 80 (4) no money shall be withdrawn from the consolidated revenue fund or any other fund of the Federation except by the approval of the National Assembly, except in the manner prescribed by the National Assembly
“Section 83 the National Assembly may make provision for the establishment of Federation fund for.the Federation and for authorising the President if satisfying that there had arisen an urgent unforeseen expenditure to make advances to meet the needs.
“Section 38 of the CBN Act states ‘any money collected by the federal government as loan or emergency fund in form of Ways and Means Advances must be refunded before collection of another one.’
“Mr President, the relevant laws quoted clearly show that the N22.7triillion Ways and Means Advances already spent by Federal Government without informing the National Assembly was wrong and it will be unfair as representatives of Nigerians to approve this request.”
The Senate, thereafter, went into a closed-door session for one and half hours and the request was stepped down at the end of the day for lack of details.
The Tide source reports that Prof. Akinoso was elected alongside 38 other executive members of the party at the congress held on Saturday.
Other executive members are Dr Abiola Olaonipekun, who emerged as Secretary, Alhaja Latifah Latifu, Women Leader and Mr A. Adeleke, elected as Youth Leader.
It was learnt that the congress, which took place at the Obafemi Awolowo Stadium, Oke Ado in Ibadan, was attended by representatives of the Independent National Electoral Commission (INEC), the Police, other security agencies and prominent members of the party.
The election was supervised by electoral committee members, among whom were Prince Diran Odeyemi, who served as Chairman, Hon. Awoniyi Tolulope, Mr Babatunde Gbadamosi, Queen Stepheine Oyechere, Alhaji Yusuf Abidakun, Mr Olumide Aguda and Dr Phillips Adeniyi, who served as Secretary.
Prof. Akinoso, in his inaugural address, urged members of the party to set aside intra-party differences.
He advised them to concentrate their resources on the promotion of the party, saying, “The primary responsibilities of party executive members are to coordinate party activities, ensure harmony among members, and ensure party victory during general elections.
“Our immediate assignments are to key into INEC released 2027 general election time-tables. As directed by the National Caretaker Committee of PDP, our party e-membership registration starts next week. We must be fully involved and do a membership drive.
“A political party is only relevant and benefits its members if it wins the election. This is our goal. We should set aside intra-party differences; concentrate our resources towards the promotion of the party. We will make necessary consultations and dialogue to actualise this”.
President Tinubu disclosed this during an interfaith breaking of fast with senior journalists and media executives at the Presidential Villa in Abuja on Saturday.
He also disclosed that his administration had opened up on the principles of true federalism to the extent that local governments now get direct allocation from the Federal Government.
“There’s no morning that I ever leave my house without going through the newspapers. It’s an addiction. I read all of you.
“It might not be in full detail, but headline, the one that would hit me and the ones that won’t.
“At the beginning of this administration, I was just a little bit stubborn, looking at opportunities to correct things and make life more easier for the downtrodden.
“We’ve opened up the principle of federalism to the extent that local governments are now getting their money, but how they use it is in your hands. So, don’t bombard me alone,” President Tinubu said.
The ruling party said the ADC had turned criticism of the APC-led administration into its operating manifesto instead of presenting concrete solutions to Nigeria’s economic challenges.
In a statement issued on Saturday by the APC National Publicity Secretary, Mr Felix Morka, the party dismissed the ADC’s interpretation of a report presented at a policy dialogue organised by Agora Policy which suggested that the country’s poverty rate had risen from 49 per cent to 63 per cent.
Mr Morka said the opposition party’s reaction to the report as a “damning verdict” on the government’s economic policies reflected either ignorance of economic realities or deliberate political mischief.
“The African Democratic Congress’ attempt to spin a recent report presented at the Agora Policy dialogue indicating a rise of poverty rate of 63 per cent from 49 per cent as a damning verdict on this administration’s economic policies speaks either to its shocking ignorance of economic policy or its wilful blindness to the justification for, and transformative impacts of, ongoing economic reforms,” he said.
The APC spokesman noted that the report itself recognised the necessity of reforms aimed at correcting long-standing structural distortions in the economy.
According to him, the ADC had failed to present any credible alternative policy direction for Nigerians.
“Clearly, the ADC does not recognise itself as a political party. The ADC has not articulated a single alternative policy position or prescription of benefit to Nigerians. Condemning the APC and its policies has become its operating manifesto,” Mr Morka said.
He explained that major economic decisions taken by President Bola Tinubu, including the removal of fuel subsidy and the unification of multiple foreign exchange windows, were necessary steps to rescue the country’s economy from collapse.
Mr Morka said the subsidy regime had for years placed a heavy burden on public finances, consuming trillions of naira annually while encouraging corruption, fuel smuggling and inefficiencies in the system.
He added that the reforms had helped redirect national resources to key sectors such as infrastructure, healthcare, education and social development.
The APC spokesman acknowledged that economic reforms often come with short-term hardship but stressed that the measures were essential to build a stronger and more resilient economy.
“Economic reform is never cost-free anywhere in the world. The transient hardship experienced by Nigerians was an inevitable cost of reforms meant to build and guarantee a better future for all Nigerians,” he said.
Mr Morka maintained that the country’s economic outlook was already improving, citing recent growth figures and stronger external reserves.
“Our economy has rebounded and is expanding steadily. The country’s Gross Domestic Product grew by 4.4 per cent last year and is projected to expand by 5.5 per cent this fiscal year, with foreign reserves now exceeding $50 billion,” he stated.
He also pointed to government initiatives designed to cushion the effects of economic adjustments on citizens, including cash transfer programmes, student loan schemes and the rollout of compressed natural gas (CNG) initiatives to reduce transportation costs.
Mr Morka reaffirmed that the APC-led administration would remain focused on rebuilding the economy and expanding social investments to support vulnerable Nigerians.
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