House amends CBN Act, raises advances to FG from 5% to 15% like Senate

• extends implementation of 2022 supplementary budget to Dec

In an emergency plenary session on Sunday, the House of Representatives passed a Bill which seeks to amend the Central Bank of Nigeria (CBN) Act regarding the Ways and Means Advances policy.

The amendment specifically seeks to increase the total CBN advances to the federal government from five per cent (5%) to a maximum of 15 per cent.

During the consideration of the bill’s clauses at its Committee of the Whole, the Chairman, House Committee on Water Resources, Hon. Sada Soli, kicked against the rationale behind the increment.

He said: “Mr. Chairman, does it mean with this amendment that the CBN somehow advances to government at 10% or is it a wakeup call at the twilight of this government we are changing this from 5% to 15%? Can the Chairman, Banking and Currency kindly explain not only to the National Assembly but to Nigerians.

“Does it mean the CBN granted this advances at 15% or what is going on?This is what we don’t know Chairman. I’m a member of the Committee on Banking and Currency. I didn’t know when this discussion took place. I can stand on privilege Order 6 to call for an explanation as a member of this committee, how did we reach this amendment, please?”

Reacting, the Deputy Speaker, Hon. Idris Wase, who presided over the Committee of the Whole said: “Hon. Sada, the only explanation I may attempt to give if I listened to you very carefully is this, the chair has the right to commit after second reading any bill to the Committee of the Whole. It is there contained in our Standing Order. It depends on the importance and the exigency of the moment. And in light of this, I want to beg our colleagues to please consider this amendment and we pass it so that we have the right thing done.”

Also during the session, the lawmakers  passed through third reading a bill seeking to extend the implementation of the 2022 Supplementary Appropriation Act from 30th June, 2023 to 31st December, 2023.

However, the House deferred the consideration of a bill seeking to repeal the Revenue Mobilization, Allocation and Fiscal Commission Act, 2004 and enact the Revenue Mobilization, Allocation and Fiscal Commission Bill to grant the commission enforcement powers in the monitoring of accruals to and disbursement of revenue from the Federation Account and to bring the Act in conformity with the provisions of the 1999 Constitution (as amended).

The bill was transmitted to the Senate for concurrence and slated for consideration at the Committee of the Whole.