VenturesNow

Nigeria: Senate cautions executive over central bank loans, illegal spending

Published

1 year ago

October 4, 2023

The Nigerian Senate has advised President Bola Tinubu to send a supplementary budget for the country’s Compressed Natural Gas initiative and cautioned him against engaging in illegal spending.

Through its Gas Committee, chaired by Senator Jarigbe Jarigbe, the Senate urged Tinubu to swiftly submit a 2023 Supplementary Budget to the National Assembly in order to launch the compressed natural gas project.

This request was made just 48 hours after President Bola Tinubu announced plans to ease Nigerians’ pain from the removal of fuel subsidies. The law, insisted the legislators, forbade extra-budgetary spending.

Nigerian President, Bola Tinubu, in a nationwide broadcast on the commemoration of the country’s independence on Sunday, announced an interim wage rise for low-income workers, and deployment of mass transit buses running on gas to ease the impact of petrol subsidy removal.

Tinubu, in his address, said the government “has opened a new chapter in public transportation through the deployment of cheaper, safer CNG buses across the nation. These buses will operate at a fraction of current fuel prices, positively affecting transport fares. New CNG conversion kits will start coming in very soon as all hands are on deck to fast track the usually lengthy procurement process.”

The Central Bank of Nigeria’s advances to the federal government rose 2900 per cent in the last seven years to N23.8 trillion under Tinubu’s predecessor, Muhammadu Buhari, an unprecedented rise that violated the law, triggered inflation and worsened the country’s debt burden; and the Senate is worried the latest “CNG move ” by the executive might degenerate into a similar position

Although the committee’s chairman praised Tinubu for the CNG initiative, he also cautioned that other projects in the gas value chain and the use of taxpayer money without National Assembly approval would be illegal. The senators cautioned against extra-budgetary spending through Ways and Means, saying that the legislature was ready to support and assist the populace.

Jarigbe said, “The noble initiative would ameliorate the hardship of the citizens. Also, the President needs to come up with a supplementary budget to enable the government to fund the gas value chain, including the provision for CNG infrastructure and CNG vehicles.

“The President should not embark on extra-budgetary expenditure because it would be inconsistent with the provisions of the law.”

Related Topics:Featured Nigeria President Bola Tinubu

Click to comment

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.