The Senate Ad hoc Committee investigating the N30 trillion Ways and Means facility granted to the federal government has accused the Central Bank of Nigeria (CBN) of obstructing its efforts to uncover how the funds were utilized.
The facility, allegedly disbursed to the federal government between 2015 and 2023, is under scrutiny for its impact on the economy.
According to a report by the News Agency of Nigeria (NAN), the Committee Chairman, Senator Isah Jibrin (Kogi East), raised the allegation on Tuesday after receiving an interim report from its consultants.
Jibrin claimed that the CBN has repeatedly failed to provide the necessary documents to facilitate the investigation, delaying the completion of the committee’s assignment.
CBN accused of withholding documents
During the hearing, Malam Hamisu Abdullahi, CBN’s Director of Banking Services, stated that the apex bank had provided all requested documents.
However, Senator Jibrin dismissed the claim, insisting that the committee had not received any of the required documents.
“None of the documents was submitted to us,” Jibrin said.
“As it is, we will not allow you to attend the next meeting because you have been coming here for the same reason. The least person that should attend the next meeting should be a deputy governor of the CBN,” he said.
- Jibrin further emphasized, “What you are telling us is not the truth. We have not received the documents. I don’t want to deceive the public here.”
- He expressed frustration over the CBN’s actions, stating that the committee’s mandate to deliver a timely report to the Senate President was being undermined.
“The information we have here is not different from what we have heard all along. What we did was to hand over the documents to the consultants, and when the consultants made available to us this interim report, our intention was to hold onto the interim report until the final report.
“However, we have been compelled to make this interim report public so that Nigerians know where the problem lies.
“The problem is that the CBN has consistently denied us the documents needed to complete this assignment,” he explained.
What is the Ways and Means facility?
The Ways and Means facility is a loan mechanism through which the CBN finances the federal government’s budget shortfalls. However, this form of financing often leads to macroeconomic instability, including inflation and high exchange rates, due to the excess liquidity injected into the economy.
- Under the CBN Act, advances under the Ways and Means facility are limited to five percent of the previous year’s revenue.
- In February 2024, CBN Governor Olayemi Cardoso announced that the bank would cease granting Ways and Means advances to the government until all outstanding debts are repaid. This decision was part of efforts to address the economic challenges arising from the facility.
