Senate forms panel to investigate CBN’s N30 trillion loan to FG

Senate forms panel to investigate CBN’s N30 trillion loan to FG

The Senate has established a nine-member committee to probe the N30 trillion Ways and Means advances provided by the Central Bank of Nigeria (CBN) to the federal government.

During Tuesday’s session presided over by Deputy Senate President Barau Jibrin, Senator Jibrin Isah (representing Kogi East) was appointed the committee’s chairman.

The Senate’s decision to investigate the utilization of the loan follows its adoption of the report from the Joint Committee on Banking, Insurance and Other Financial Institutions, Finance, National Planning, Agriculture, and Appropriations last week.

Ways and Means is a loan facility extended by the CBN to the federal government to address budget shortfalls.

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The loan facility has stirred controversy, with experts raising concerns over the CBN surpassing its lending limits to the federal government, contrary to existing laws.

Barau, in his statement before announcing the committee’s composition, highlighted that excessive borrowing has contributed to inflation in the country.

He remarked, “The financial obligation to the CBN now stands at N30 trillion. It is therefore imperative to scrutinize the N30 trillion Ways and Means loans to recover whatever is feasible.”

The ad hoc committee includes Ekpeyong Asuquo, Mohammed Tahir Monguno, Victor Umeh, Olamilekan Adeola, Sani Mohammed Musa, Aliyu Wadada, Abdul Ningi, and Ipalibo Banigo Harry. They have been granted four weeks to submit their report for further legislative action.

Senate forms panel to investigate CBN’s N30 trillion loan to FG