The Nigerian Senate has announced plans to investigate the utilization of the N30tn Ways and Means loans acquired by the Central Bank of Nigeria (CBN) during the tenure of former President Muhammadu Buhari. These loans, obtained through the Ways and Means facility, were intended to address budget shortfalls.
In a session on Tuesday, the Senate expressed concerns over the alleged reckless spending of the overdraft from the CBN under the leadership of Godwin Emefiele, linking it to the current economic challenges, including food and security crises.
The Senate has resolved to establish an ad hoc committee to probe the expenditure of the N30tn overdraft, citing a lack of transparency in how the funds were utilized, as the details were not provided to the National Assembly.
Additionally, the committee will investigate the N10tn disbursed for the Anchor Borrowers Scheme, the utilization of $2.4bn out of the $7bn earmarked for forex transactions, and other intervention programs.
This move comes amidst growing concerns over the economic downturn, marked by food shortages, inflationary pressures, currency depreciation, and heightened insecurity across the country.
Criticism has been directed at President Bola Tinubu and his economic team following last year’s removal of fuel subsidies and the implementation of an exchange rate unification policy, which have exacerbated economic challenges for citizens. However, government officials argue that these reforms are necessary to address past mismanagement and stimulate economic recovery.
The Senate’s investigation aims to shed light on the alleged mismanagement of funds by the previous administration and ensure greater accountability in financial matters. The lack of transparency surrounding the utilization of the N30tn CBN loans has raised concerns among lawmakers, prompting calls for a thorough inquiry.
The Senate’s decision to probe these loans reflects a broader commitment to fiscal oversight and accountability in government expenditure. It underscores the importance of transparency in financial management and the need for prudent use of public funds to address pressing economic challenges.
