Senate constitutes panel to probe CBN’s N30trn loan to FG

The Senate has constituted a nine-man committee to investigate the N30 trillion Ways and Means advances the Central Bank of Nigeria (CBN) extended to the federal government.

Deputy Senate President, Barau Jibrin, who presided over the plenary, announced Senator Jibrin Isah (Kogi East) as chairman of the panel during Tuesday’s sitting.

The Red Chamber had, last week, resolved to probe how the loan was used after adopting the report of its joint Committee on Banking, Insurance and other Financial Institutions, Finance, National Planning, Agriculture and Appropriations.

The Ways and Means is a loan facility the CBN gives the federal government to fund budget shortfalls.

The loan facility has been a subject of controversy, with experts expressing concern that CBN had exceeded its lending threshold to the federal government, against extant laws.

Barau, in his remark before announcing membership of the committee, said the excessive borrowing caused inflation in the country.

He said: ““The financial obligation to the CBN now stands at N30 trillion. It is therefore imperative to interrogate the loans of the N30 trillion Ways and Means with a possibility of recovering whatever possible.”

Other members of the ad hoc committee are: Ekpeyong Asuquo, Mohammed Tahir Monguno, Victor Umeh, Olamilekan Adeola, Sani Mohammed Musa, Aliyu Wadada, Abdul Ningi and Ipalibo Banigo Harry.

They were given four weeks to turn in their report for further legislative action.