On Wednesday, a heated debate erupted in the House of Representatives over a bill proposing to increase the Ways and Means advances from 5 percent to 10 percent of the federal government’s previous year’s revenue.
Ways and Means is a loan facility through which the Central Bank of Nigeria (CBN) finances the federal government’s budget deficits. According to CBN regulations, these advances should not exceed 5 percent of the prior year’s revenue, a limit that has been frequently exceeded.
During the session, opposition parties walked out after Kingsley Chinda’s recommendation to lower the increase to 2 percent was rejected.
Chinda, the minority leader, proposed this amendment to enhance transparency in federal spending during the bill’s review in the committee of the whole. The initial report suggested raising the Ways and Means limit from 5 percent to 15 percent.
James Faleke, chair of the finance committee, opposed Chinda’s amendment, insisting the house should not drop below the 5 percent limit in the existing law. Ibrahim Isiaka, a lawmaker from Ogun State, supported Faleke, suggesting the borrowing limit be increased to 10 percent.
Former Deputy Speaker Idris Wase proposed maintaining a 10 percent limit. When Deputy Speaker Benjamin Kalu called for a voice vote on Wase’s amendment, despite louder “nays,” he ruled in favor of the “ayes,” sparking outcry from the opposition.
Following the uproar, opposition lawmakers, led by Chinda, walked out of the plenary. The report was subsequently adopted and passed for third reading.
Discussions on Ways and Means began on December 28, 2022, when former President Muhammadu Buhari asked the National Assembly to securitize N22.7 trillion in Ways and Means advances from the CBN. In January 2023, Buhari informed the Senate that failing to approve the N22.7 trillion would cost the federal government about N1.8 trillion in interest.
On May 23, 2023, the Senate approved Buhari’s request. In December, former CBN Governor Godwin Emefiele was implicated in a fraud case related to the CBN’s loan. A panel led by Jim Obazee, a special investigator, reported that Emefiele and former Finance Minister Zainab Ahmed advised Buhari to restructure N23.71 trillion in Ways and Means, despite presenting a different figure to the National Assembly on the same date.
