CBN Act: Senate convenes emergency plenary, grants FG’s request

Saturday marked the holding of an emergency session of the Senate of the Federal Republic of Nigeria, which was presided over by the Senate President, Dr. Ahmad Ibrahim Lawan.

The plenary meeting was held in order to amend the Central Bank of Nigeria Act by raising the percentage of advances from 5% to 15%.

According to the bill’s sponsor, Senator Gobir Ibrahim Abdullahi of the Sokoto East Senatorial District, the CBN Act amendment bill had its first reading on May 24, 2023. This was the Wednesday before the bill was introduced.

He explained that in order for the federal government to be able to fulfil its financial commitments, the request made to the Ways and Means Committee needed to be increased from the current 5% to 15%.

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Senator Abdullahi explained the purpose of the proposed legislation as follows: “The Bill seeks to amend the Central Bank of Nigeria, CBN, Act to increase the total CBN advances to the Federal Government from five percent (5%) to a Maximum of fifteen percent (15%).”

On Wednesday, May 24th, 2023, the Bill was read in this Chamber for the very first time.

“The very essence of this Bill, my respected colleagues, is to enable the Federal Government to meet its immediate and future obligation in the approval of the ways and means by the National Assembly and advances to the Federal Government by the Central Bank of Nigeria,” the text of the bill reads. “The National Assembly must approve the ways and means, and the Federal Government must receive advances from the Central Bank of Nigeria.”

The leader of the Senate urged the support of Senators for the bill to scale through, stating that it was for important projects that would inflate and rejig the economy if it was allowed to move forward.

The senators who spoke on the floor concurred with his submission and pointed out that the FG was burdened with a significant amount of responsibilities, which is the reason for their support.

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Senate President Dr. Ahmad Ibrahim Lawan made a statement in which he thanked lawmakers for their understanding and then proceeded to vote on and pass the bill into law.