Senate Uncovers Alleged Infractions in Central Bank of Nigeria’s Ways and Means Borrowings

The Senate’s Adhoc Committee, tasked with scrutinizing the intricacies of Ways and Means borrowings and financial allocations, said it has uncovered a series of alleged infractions within the Central Bank of Nigeria (CBN)’s operational framework.

Led by Chairman Isah Jibrin, the Committee’s revelations shed light on thirteen instances of purported irregularities, signaling a potential breach in governance protocols surrounding the approval and utilization of substantial financial advances.

In a discourse during the Committee’s inaugural interactive session with top officials from the CBN, spearheaded by Deputy Governor Bala Bello, Senator Jibrin raised concerns over unilateral approvals granted by former CBN Governor Godwin Emefiele, circumventing the requisite endorsement from the Council of Governors.

The Committee’s purview extends beyond the realm of Ways and Means borrowings to encompass a comprehensive review of the Anchors Borrowings Programme. While acknowledging the commendable 70% recovery rate achieved for the loans, the Committee emphasizes the urgency of securing the remaining 30%, primarily owed by smallholder farmers.

Additionally, the Committee calls upon the CBN to actively pursue commercial banks for the recovery of N358 billion in Anchor Borrower Loans, stressing the imperative for the repayment of guaranteed loans to safeguard financial integrity.

Responding to mounting concerns surrounding financial oversight, the Committee has formally requested pertinent documentation from the CBN to facilitate its investigative process. Moreover, deliberations have surfaced regarding the potential summoning of former CBN Governor Godwin Emefiele as a last-resort measure to glean deeper insights into the underlying infractions.

This inquiry follows President of the Senate Godswill Akpabio’s inauguration of the ad-hoc committee on March 11, 2024, to probe the utilization of the N30 trillion Ways and Means advances allocated during the tenure of former President Muhammadu Buhari. The investigation aims to address growing concerns regarding transparency and accountability surrounding the allocation and utilization of these substantial funds.

The Minister of Finance and Coordinating Minister of Economy, Wale Edun, has attributed Nigeria’s current hyperinflation crisis to the excessive printing of currency by the Central Bank of Nigeria (CBN) between 2015 and 2023.

Edun said, “We talked about inflation, and you have helped to solve that. Where has it come from?

“It came from eight years of just printing money not matched by productivity. It’s not like when you earn dollars, and you free the naira alongside it, although there’s even a better way than that. But that’s still not as bad.”

Earlier this month, Presidential spokesperson Ajuri Ngelale made startling allegations against Emefiele, accusing him of depleting the country’s foreign reserves without the consent of former President Muhammadu Buhari.

In an exclusive interview with TVC, Ngelale asserted that Emefiele made significant financial decisions without the approval of the former president, resulting in the expenditure of billions of dollars from the foreign reserve without proper authorization.

“What was done concerning the expenditure of billions of dollars from the foreign reserves was done largely without the approval or knowledge of President Muhammad Buhari,” Ngelale disclosed during the interview.

The president’s spokesperson stated that the CBN governor held significant authority over most of the apex bank’s operations and simultaneously served as the chairman of the bank’s board of directors.

“Yes, that might seem hard for some people to believe, but I want to explain how that could have happened.

“We have one of the few Central Banks in the world where the day-to-day CEO was the governor of the Central Bank and was also the chairman of the board of directors. He was essentially overseeing himself,” he said.