On Tuesday, the Senate decided to investigate the acquisition and utilization of the N30 trillion Ways and Means loans by the Central Bank of Nigeria during the tenure of former President Muhammadu Buhari.
Ways and Means is a loan tool employed by the CBN to address government budget shortfalls.
The Senate attributes the current food and security crises to the extravagant spending of the overdraft received under Godwin Emefiele’s leadership.
A special committee will be formed to scrutinize the N30 trillion overdraft, the N10 trillion spent on the Anchor Borrowers Scheme, the $2.4 billion forex transaction, and other intervention programs.
This move follows persistent economic challenges and criticisms of President Tinubu’s policies.
The Senate’s investigation aims to unveil the alleged mismanagement of resources during Buhari’s administration, particularly focusing on the Ways and Means loan. In January 2023, Buhari sought to convert the N22.7 trillion loan to a 40-year bond, later increased to N30 trillion.
The House of Representatives approved this conversion, but the 9th Senate faced internal disagreements when some lawmakers demanded details before endorsing the loan.
The current Senate’s probe, prompted by the challenging economic conditions, will delve into the spending patterns, especially the substantial direct lending by the CBN, contributing to rising inflation and a weakened naira. The investigation will extend to other economic aspects, including the Anchor Borrowers Programme.
The Joint Senate Committee emphasizes the urgent need to address inflation, enhance food production, and stabilize the economy through coordinated fiscal and monetary policies.
The report underscores the impact of the N30 trillion Ways and Means on inflation, money supply, and the depreciation of the naira. The probe panel is set to summon key figures from the previous administration.
The People’s Democratic Party welcomes the investigation, attributing current hardships to Buhari’s actions. The Labour Party views the probe positively but questions the Senate’s commitment.
Both parties express skepticism about the Senate’s impartiality, given its perceived alignment with the ruling party. Former Minister Lai Mohammed and CBN’s Emefiele’s counsel, Matthew Bukka, remain unavailable for comments.
