The Senate has announced plans to investigate the former President of Nigeria, Muhammadu Buhari, along with other officials, including former governors of the Central Bank of Nigeria (CBN), regarding the disbursement of N30 trillion in “Ways and Means” funds over the past decade.
In a recent session, the Senate emphasized the urgency of addressing the N30 trillion obligation owed by the federal government, suggesting a faster repayment mechanism than the current 40-year securitization plan.
“Ways and Means” refer to temporary loans or advances provided by the CBN to the government to cover short-term financial needs or emergencies when expected revenues fall short.
The Senate, led by Senator Abdullahi Yahaya Abubakar, emphasized the importance of evaluating the performance of various government intervention programs funded through these means to reduce the money supply.
As part of its oversight role, the Senate intends to investigate quasi-fiscal measures totaling N10 trillion, including the Anchor Borrower program, to identify and address loopholes in future financial activities.
Additionally, the Senate aims to scrutinize $2.4 billion in Forex transactions deemed invalid out of a total $7 billion obligation, with a focus on identifying responsible parties and imposing appropriate sanctions to deter future irregularities.
Another area of concern is the sudden revision of rate calculation methodologies by the Financial Markets Dealers Quotation (FMDQ) on January 29, 2024, resulting in a significant increase in the NAFEM rate. The Senate intends to investigate this matter to protect investments and economic stakeholders with foreign currency exposure.
In its recommendations, the Senate called on the CBN to adhere to legal provisions regarding Ways and Means and ensure transparency through timely submission of financial reports to the President and National Assembly.
Furthermore, the Senate pledged to collaborate with security agencies to address insecurity and ensure food security, particularly in states like Niger, Benue, Kebbi, Plateau, and Zamfara.
Senator Godswill Akpabio, the President of the Senate, stressed the importance of a thorough probe into the Ways and Means expenditures, highlighting the need for transparency and accountability in government financial operations.
However, the debate surrounding the report led to a contentious exchange, with Senator Ali Ndume accusing the Senate of lacking the authority to approve funds already expended. He argued that the details of Ways and Means expenditures were not provided to the Senate, rendering the approvals illegal. Conversely, Senator Mohammed Danjuma Goje countered Ndume’s claims, asserting the Senate’s authority to approve such funds.