The Senate has initiated an investigation into the disbursement of over N30 trillion in ‘Ways and Means’ loans obtained from the Central Bank of Nigeria (CBN) by the previous government over the past decade.
To facilitate the inquiry, the Senate has established an ad hoc committee tasked with conducting a comprehensive investigation into the matter and submitting a report to the plenary within four weeks.
Deputy Senate President Senator Jibrin Barau, representing Kano North under the All Progressives Congress (APC), presided over part of the recent plenary session during which the committee was constituted.
Chaired by Senator Jibrin Isah from Kogi East, also of the APC, the committee comprises Senators Asuquo Ekpenyong (APC, Cross River South), Mohammed Tahir Monguno (APC, Borno North), Victor Umeh (LP, Anambra Central), Olamilekan Adeola (APC, Ogun West), and others.
The formation of the committee followed a resolution adopted during the previous week’s session, which underscored the importance of investigating the ‘Ways and Means’ transactions under the administration of former President Muhammadu Buhari.
‘Ways and Means’ loans, provided by the CBN to the federal government, serve to address short-term or emergency financial needs arising from delayed cash receipts. However, concerns were raised during last week’s deliberations when details of the fund’s expenditure were not provided, prompting Senator Ali Ndume (APC, Borno South) to insist on adherence to parliamentary rules.
Deputy Senate President Jibrin Barau expressed dismay over what he described as reckless spending contributing to inflation in the country, emphasizing the need for a thorough investigation to recover the borrowed funds.
Barau highlighted the adverse economic effects of the unprecedented liquidity injected into the economy through the CBN’s ‘Ways and Means’ mechanism, stressing that the outstanding debt of N30 trillion must be addressed urgently. He further noted the long-term implications of failing to repay these loans, which would continue to burden the CBN’s balance sheet for the next four decades.
The committee’s mandate includes scrutinizing the N30 trillion ‘Ways and Means’ loans and exploring avenues for potential recovery, given the current economic challenges facing the nation.
