Like Senate, House Amends CBN Act, Raises Advances to FG from 5% to 15%

Extends implementation of 2022 supplementary budget to Dec.

In an emergency plenary session yesterday, the House of Representatives passed a bill which seeks to amend the Central Bank of Nigeria (CBN) Act regarding the Ways and Means Advances to the federal government.

The amendment specifically seeks to increase the total CBN advances to the federal government from five per cent (5%) to a maximum of fifteen percent (15%).

However, during consideration of the bill's clauses at its Committee of the Whole, the Chairman, House Committee on Water Resources, Hon. Sada Soli kicked against the rationale behind the increment.

He said: "Mr. Chairman does it mean with this amendment that the CBN somehow advances to the government at 10 per cent or is it a wakeup call at the twilight of this government that we are changing this from five per cent to 15 per cent?

“Can the Chairman, Banking and Currency kindly exchange this explanation not only to the National Assembly, but to Nigerians.

“Does it mean the CBN granted this advances at 15 per cent or what is going on? This is what we don't know Mr. Chairman. I'm a member of the Committee on Banking and Currency. I didn't know when this discussion took place.

“I can stand on privilege Order 6 to call for an explanation as a member of this Committee, how did we reach at this amendment, please?"

Reacting, the Deputy Speaker, Hon. Idris Wase who presided over the Committee of the Whole said: "Hon. Sada the only explanation I may attempt to give if I listened to you very carefully is this: The Chair has the right to commit after second reading any bill to the Committee of the Whole. It is there contained in our Standing Order.

“It depends on the importance and the exigency of the moment. And in light of this I want to beg our Colleagues to please consider this amendment and we pass it so that we have the right thing done."

Also during the session, the lawmakers passed through third reading a bill seeking to extend the implementation of the 2022 Supplementary Appropriation Act from 30th June, 2023 to 31st December, 2023.

However, the House deferred the consideration of a bill seeking to repeal the Revenue Mobilisation, Allocation and Fiscal Commission Act, 2004 and enact the Revenue

Mobilisation, Allocation and Fiscal Commission Bill to grant the Commission enforcement powers in the monitoring of accruals to and disbursement of revenue from the Federation Account and to bring the Act in conformity with the provisions of the 1999 Constitution (as amended).

The bill was transmitted to the Senate for concurrence and slated for consideration at the Committee of the Whole.

Meanwhile, a member of Social Democratic Party (SDP), Hon. Cook Olododo from Kwara State, formally announced his defection to the ruling All Progressives Congress (APC).

The notice was contained in a letter read by the Speaker, Hon. Femi Gbajabiamila on the floor of the House.

Thereafter, the House adjourned plenary to Tuesday, 30th May, 2023.