Abuja, Feb.21, 2024:The Senate has resolved to constitute an ad-hoc committee to investigate N30 trillion Ways and Means expenditure approved by 9th National Assembly for former President Muhammad Buhari administration.
It also said it would investigate the various interventions programmes like Anchor Borrows programme funds, electricity intervention fund among others, following the current economic issues in Nigeria.
Senate resolutions followed adoption of recommendations of report of its Joint Committee on Banking,Finance, National Planning, Agriculture and Appropriations on interaction with Federal Government Economic Management Team on state of the economy at plenary on Tuesday.
The report was presented by Chairman of the Committee Sen.Abdulahi Yahaya (PDP-Kebbi).
Yahaya said Nigerian economy was currently facing challenging times largely caused by distortions resulting from major fiscal and monetary policy actions of previous governments notably the huge direct lending to the federal government by the Central Bank of Nigeria to the tune of about N30 trillion.
He also listed operation of an opaque fuel subsidy regime and a series of interventions by the Central Bank of Nigeria which seemed not well targeted as the issues.
This, he said resulted in rising inflation especially food, and persistent naira depreciation.
“Expectedly, the on-going efforts by the current administration to correct the anomalies of the past have come with some painful economic conditions which need to be ameliorated.
“In reaction to the current economic hardship Nigerians are going through, the Joint Senate Committee on Banking, Insurance and other financial Institutions, Finance, National Planning, Agriculture and Appropriation, held an interactive session with the key members of the Federal Government’s economic management team.”
He said the aim was to ascertain the true state of affairs of Nigeria’s economy, the nature of the challenges and measures being put in place to address them within the shortest possible time.
He said the recommendations lfrom the interaction was the urgent need to bring down inflation, boost food production and stabilize the economy through proper coordination of fiscal and monetary policies.
Senate after intensive debate on the report by lawmakers also adopted the 15 recommendations in light of the economic issues.
It urged government to prioritise liquidating the N30 trillion Ways and Means obligation of the federal government through a quicker resolution mechanism than the current securitization arrangement of over a period of 40 years.
It said the CBN should put in place measures to ensure the repayment of various intervention programmes by the beneficiaries after a thorough evaluation of their performance.
This senate said would help reduce money supply.
“The quasi-fiscal measures totalling N10 trillion of which the Anchor Borrower programmer is a major part should be further interrogated by the Committee with a view to plugging loopholes in future development finance activities of the Bank.”
It also recommended further interrogation of the 2.4 billion dollars forex transactions adjudged invalid out of the outstanding 7 billion dollars obligations with to identify culprits and meting out appropriate sanctions to serve as deterrent.
This, it said would ensure transparency, and boost confidence in the market.
It also called for rapid social safety net interventions to provide interventions in the area of food and transportation to alleviate suffering of vulnerable Nigerians and mitigate the impact of economic challenges.
It also urged the CBN to ensure compliance with the provisions of the Act in respect of Ways and Means and accountability through timely submission of its budget, financial statements and report of its activities to the President and National Assembly as stipulated in the Act.
Other recommendations adopted by senate includes addressing issues of land tenure systems in Nigeria for agricultural investment, give incentives to manufacturers of farming equipment to manufacture or assemble them locally.
It also called for provision of security that empowers farming clusters and associations to ensure security in their communities, provide smallholder farmers with access to credit, inputs, modem farming techniques, and extension services to increase their productivity and yields.
It also encouraged adoption of mechanized farming techniques and technologies to improve efficiency and productivity in agriculture among others.
