The economic challenges and strong headwinds facing Nigeria have not been properly addressed by political parties and candidates. For anyone with a deep understanding of the challenges of an economy that is tottering on bankruptcy, the postulations and promises of the candidates and their political parties are confounding. This discourse reviews a critical issue in the economy in the area of monetary policy and ends with questions on how presidential candidates will deal with the challenge.
The Central Bank of Nigeria and the Major General Muhammadu Buhari led Federal Government have conspired and egregiously violated the provisions of S.38 of the CBN Act on advances from the CBN to the Federal Government for funding the federal deficit.The advances were in excess of the statutory limit – five per cent of the previous year’s actual revenue.
There are matters arising out of this state of affairs. The first is about a President and Commander-in-Chief, the Minister of Finance, and the Chief Law Officer in the person of the Attorney General for the Federation, all conspiring to break the law. The Attorney General is included because he ought to have advised the President and the Minister of Finance properly and if they refused his advice, the coast was clear for him to do the needful.
The second is about the constitutional role of the National Assembly in the exercise of the oversight role over the executive. The rubber stamp National Assembly saw nothing wrong in the advances, heard nothing wrong and continued the pretence that all was well and sang about it in their hosanna choir mentality. Despite the humungous remuneration paid to the members of NASS, they failed the Nigerian people and left their work undone.
Furthermore, the same Debt Management Office that has been mouthing inanities on the sustainability of Nigeria’s debt, despite evidence to the contrary, is now sounding the alarm bell of Buhari leaving N77tn in debt for the next administration. The DMO had resisted all noble advice to begin to take steps to prune down borrowing while mouthing inanities like debt to GDP ratio, when it was clear to all that debts are not repaid with dead portions of the GDP that contribute nothing to the revenue.
The president has forwarded a request to the NASS to essentially convert the huge ways and means to a loan; converted to a debt to be securitised by a bond. This is simply asking the NASS to approve a loan request after the money has been drawn down by the executive and spent.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
With detribalised president, Nigeria can rise again — Ighele | The Guardian Nigeria News - Nigeria and World NewsMy New Year Message to Nigerians is that people should learn to know their rights and fight for their rights. A lot of Nigerians are living in ignorance.
Read more »
Buhari orders speedy action on transformer production in Nigeria | The Guardian Nigeria News - Nigeria and World NewsPresident Muhammadu Buhari has directed speedy action to facilitate the establishment of a world-class transformer production plant in Nigeria in collaboration with China Great Wall Industry Corporation (CGWIC) of China to accelerate stable power supply in the country.
Read more »
Group equips widows with skills, business startup | The Guardian Nigeria News - Nigeria and World NewsConcerned about the plights of widows and their children, Topisto Brand Ambassador and On Air Personality, Uzo Ododo-Oba, has declared that widows deserve to live a happy and dignified life again after the demise of their husbands.
Read more »
Fresh ambience | The Guardian Nigeria News - Nigeria and World NewsWhile some wait till the end of January to take out all the Christmas décor items, including the tree, a number of others shut down the festive ambience in their home in the first week of January for a New Year rearrangement.
Read more »
Queen Lilian bags Aso Cultural Heritage award | The Guardian Nigeria News - Nigeria and World NewsThe Aso Cultural Heritage has rewarded Miss Curvy Africa Fitness, Lilian Ujunwa Nnamani, with an award in recognition of her immense contributions to the nation’s entertainment industry.
Read more »
Taraba: WACHEF honours first NCWS president | The Guardian Nigeria News - Nigeria and World NewsThe Women and Children Health Empowerment Foundation (WACHEF) has conferred an award on Hajiya Lami Adamu Lau, as the first woman from Taraba to become the National President of the National Council of Women Society (NCWS). Adamu hails from Lau Local Council of Taraba State.
Read more »