The Nigerian Senate has kicked-off investigation into the ways and means loan to the federal government to the tune N30 trillion including interest rate.
The upper chamber constituted a committee to probe the utilization of the loan under President Muhammadu Buhari. The committee which has Jibrin Isah, the Senator representing Kogi East as Chairman has four weeks to conclude its investigation.
Members of the Committee include Adamu Aliero, the Senator representing Kebbi Central; Adetokunbo Abiru, Senator representing Lagos East, Asuquo Ekpenyong, Senator representing Cross River South; Mohammed Tahir Monguno, Senator representing Borno North; Victor Umeh, Senator representing Anambra Central; and Olamilekan Adeola, Senator representing Ogun West; Sani Musa, Senator representing Niger East; Aliyu Wadada, Senator representing Nasarawa; Abdul Ningi, Senator representing Bauchi Central; and Ipalibo Banigo Harry, Senator representing Rivers West.
The committee is to interrogate the details of the ways and means of disbursement usage, particularly the intervention programmes such as the anchor borrowers programmes, excess funding in the power sector, monies given to manufacturers, banks and airlines which increased the current debt profile of the country.
The Committee will also probe the ‘quasi-fiscal measures’ totalling N10 trillion of which the Anchor Borrower programme to plug financial loopholes.
Deputy Senate President Jibrin Barau who announced the constitution of the Committee during plenary on Tuesday noted that the CBN ways and means contributed to unprecedented liquidity in the economy and the current inflationary pressure that the country is experiencing.
The federal government’s inability to pay the temporary accommodation led to the securitization and restructuring to a 40 year loan at a 9 percent interest per annum.
By implication, the debt will appear in the balance sheet of the CBN for the next 40 years until liquidated.
“It is therefore imperative to interrogate the use of the N30 trn ways and means to recover whatever is possible and assist in moderating inflation in the short to medium term” Barau said.
