Lawyers have analyzed the legal implications and consequences associated with the Central Bank of Nigeria’s (CBN) reaffirmation that its Ways and Means Advances to the federal government will continue to be maintained at the 5% threshold for the fiscal years 2024-2025.

Last Tuesday, the CBN revealed it can advance up to 5% of the previous year’s actual collected revenue to the federal government, which must be repaid within the year to prevent a long-term fiscal burden.

The Ways and Means facility allows the apex bank to provide short-term financing to the federal government to address budget shortfalls.

This aligns with its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025, released by the CBN on Tuesday.

In an exclusive interview with Nairametrics, prominent legal practitioners shared their thoughts on the development in relation to relevant financial laws in Nigeria.

CBN to Consider Sub-Accounts of MDAs in Calculating Threshold 

The Ways and Means advances from the CBN have been associated with various forms of misappropriation in the past.

In guidelines previously reported by Nairametrics, the CBN clarified that the advances would now be determined by recognizing the sub-accounts of various Ministries, Departments, and Agencies (MDAs) linked to the Consolidated Revenue Fund (CRF), ensuring a consolidated cash position for the federal government in line with Treasury Single Account (TSA) arrangements.

The apex bank noted: “Consistent with the banking arrangement of the Treasury Single Account (TSA), Ways and Means Advances would now be determined after recognizing the sub-accounts of the various MDAs, which are now linked to the Consolidated Revenue Fund (CRF), to arrive at the Federal Government’s consolidated cash position. This will continue in the 2024/2025 fiscal years.”

What Nigerian Lawyers Are Saying 

Dr. Olisa Agbakoba, SAN, in an exclusive interview with Nairametrics, said the CBN guidelines on Ways and Means are a complex issue intertwined with legal, economic, and political realities.

According to him, the reason for limiting Ways and Means borrowing to 5% by the CBN is to control public sector borrowing requirements, which are generally not appropriated.

He also stated that the 5% cap is intended to control inflation; otherwise, a government might continuously print money to fund its public spending.

However, he maintained that this approach lacks economic basis and fundamentals.

“In simple terms, you cannot borrow without the underlying fundamentals that the economy will benefit from. Therefore, it makes sense to set a ceiling on Ways and Means borrowing. Unfortunately, this legal ceiling is often not observed. In the context of the CBN statement of policy, what it implies is that the CBN, as a lender of last resort, is available to assist the government,” he said.

He further explained that the reason why the government needs the money is of vital importance to relevant stakeholders and the economy.

He noted that if the borrowing is for productive purposes, then Ways and Means “is in principle good.”

On the other hand, Agbakoba stressed that “borrowing to pay recurrent obligations is not a good idea, as it has inflationary pressures and consequences” for the country and its citizens.

Professor Mike Ozekhome, SAN, also in an exclusive interview with Nairametrics, said the CBN’s plan to advance up to 5% of last year’s revenue may appear suspicious or even illegal on the surface.

He noted, however, that the CBN’s enabling statute, namely the CBN Act of 2007, expressly confers on the bank under Section 38, the powers to grant temporary advances to the Federal Government in respect of temporary deficiencies of budget revenue at such rate of interest as the Bank may determine.

He stated that by virtue of Section 38 of the CBN Act, the National Assembly has authorized the apex bank to grant advances (which it calls “Ways and Means”) to the federal government under strict compliance with the provisions of the CBN Act regarding the modalities, conditions for the grant of the advances, as well as their tenor and repayment.

According to him, it would be difficult to fault the CBN on the issue of Ways and Means.

He explained that regarding Ways and Means, a supplementary budget is required to be passed by the National Assembly, in line with Section 81(4) of the Constitution, emphasizing that this is the norm, as the 1999 Constitution is supreme.

He posited that in the absence of authorization by the National Assembly for a supplementary budget to capture the said Ways and Means advances by the CBN to the federal government, the advances become beyond the powers of the apex bank and unconstitutional.

“Beyond this requirement for a supplementary budget before the CBN can grant the federal government any advances, either by way of the so-called ‘Ways and Means’ or under any other guise, it is my humble opinion that this method has always been shown to be opaque and susceptible to multiple layers of corruption. A government should plan thorough budgets, not knee-jerk ad-hoc appropriations that lack transparency and accountability,” Ozekhome said.

For public interest lawyer Opatola Victor, he told Nairametrics in an exclusive interview that Nigerians must pay close attention to the issue of Ways and Means advances granted by the Central Bank of Nigeria (CBN) to the federal government, as the consequences of misuse and abuse can be far-reaching and detrimental to the country’s economic stability.

He said a major concern lies in how the CBN funds these advances and the accountability for the use of these funds, as the apex bank has no independent revenue stream to cover these large sums, leading to the conclusion that it prints vast amounts of money to meet the government’s borrowing needs.

“This unchecked money printing inevitably fuels inflation, as more money circulates without a corresponding increase in goods and services. The consequences of this are felt directly by the average Nigerian in the form of rising prices, diminishing purchasing power, and an overall decline in economic well-being,” he added.

He stated that while the Debt Management Office (DMO) recently issued 37 FGN bonds, effectively converting the unpaid Ways and Means advances into long-term debt that will be serviced with interest over the next 37 years, this move, which seems like a solution, carries significant implications.

“The securitized debt is now part of the national debt, meaning that servicing it will come from future budget allocations. This not only burdens future administrations but also reduces the funds available for critical infrastructure, social services, and other developmental needs,” he added.

The lawyer warned that without vigilant oversight from the public and a concerted effort to hold the government accountable, accumulated debts will continue under different guises.

According to him, “inflation, currency devaluation, and a growing national debt are direct outcomes of the government’s fiscal irresponsibility,” which can erode the economic prospects of ordinary Nigerians.

What You Should Know 

The Senate and the House of Representatives recently passed a bill to increase the percentage of Ways and Means loans the Central Bank of Nigeria (CBN) can give to the federal government.

The upper chamber of the Nigerian legislature raised the credit facility obtainable by the federal government from the apex bank from 5% to 10% of the revenue of a fiscal year.

However, Murtala Sabo Sagagi, a member of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), expressed concerns that the proposed increase in the federal government’s Ways and Means limit from 5% to 10% could lead to a significant surge in excess liquidity within the Nigerian economy.

Sagagi noted that this development poses a risk of exacerbating inflationary pressures and undermining the efforts of the CBN to stabilize the economy through its tight monetary policy stance.

In May 2023, shortly before the end of the Muhammadu Buhari government, the Senate approved the request of the then President to restructure the N22.7 trillion loans the CBN extended to the federal government under its Ways and Means provision.

Earlier in the year, the Governor of the Central Bank of Nigeria, Yemi Cardoso, stated that the apex bank will no longer grant Ways and Means to the federal government until the previous loans are repaid.

Cardoso noted that this was one of the measures taken by the apex bank to address the economic issues currently plaguing the country.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently announced that the federal government has repaid N7.3 trillion in Ways and Means advances to the apex bank.

[Nairametrics]

TikTok has removed accounts associated with two Russian media groups for trying to exercise what it called “covert influence” on the upcoming US presidential election, in violation of its guidelines.

The accounts are linked to Rossiya Segodnya and TV-Novosti, the organizations behind the Sputnik news agency and the RT broadcaster respectively, the social media platform said on its website Monday, labeling the groups “state-affiliated.”

The move mirrors an announcement by Meta (META) last week that it had banned Rossiya Segodnya, RT and “other related entities” from its apps globally for “foreign interference activity.”

Rossiya Segodnya and RT did not immediately respond to a CNN request for comment on the TikTok measure.

Earlier this month, the US Justice Department announced charges against two RT employees for funneling nearly $10 million into a US company, identified by CNN as Tenet Media, to create and amplify content that aligned with Russian state interests. The covert influence campaign was aimed at the American public ahead of the presidential election, US officials said.

Tenet Media boasts a slate of high-profile right-wing, pro-Trump commentators, including Tim Pool, Dave Rubin, Benny Johnson and several others. All of them released statements saying they were victims of the alleged Russian scheme.

After the Justice Department announcement, RT responded with mocking statements that did not address the specifics of the US allegations.

TikTok, for its part, has itself faced questions over whether or not the Chinese government can manipulate its algorithm to influence the American public. The platform, which 170 million Americans use to watch videos about sports, fashion and politics, is owned by Chinese company ByteDance.

In April, President Joe Biden signed a bill that could lead to a nationwide ban on TikTok in the United States unless the app finds a new owner, which the company has since challenged in court.

[CNN]

Here’s what to do

On Wednesday, Bharti Airtel, the second largest telecom operator in India introduced India’s first AI-powered spam detection solution, which according to the telco will significantly reduce the spam calls and SMSs for its network users.

Airtel calls it a first-of-its-kind solution, where it will alert users in real-time about suspected spam calls and SMSes for free and it is auto-activated for all Airtel network users.

 Spam detection works on calls and SMS. (Image credit: Airtel)

According to Gopal Vittal, Managing Director and Chief Executive Officer, Bharti Airtel “Designed as a dual-layer protection, the solution has two filters – one at the network layer and the second at the IT systems layer. Every call and SMS passes through this dual-layered AI shield. In 2 milliseconds our solution processes 1.5 billion messages and 2.5 billion calls every day. This is equivalent to processing 1 trillion records on a real-time basis using the power of AI.”

https://www.youtube.com/watch?v=ba9XMEmexsw

 

Vittal added that the solution has been able to successfully identify 100 million potential spam calls and three million spam SMSes originating every day. “For us, keeping our customers secure is a burning priority.”

This product is designed and developed in-house by Airtel, which uses a proprietary algorithm to identify and classify calls and SMSes as “Suspected SPAM”, which can analyse calls and SMS by pattern, frequency, duration, and several other parameters. This solution also alerts users when they receive a spam SMS, which might include blacklisted URLs by analysing frequent IMEI changes.

However, users will continue to receive service, and transactional calls with the prefix 160 from institutions like Banks, Mutual Funds, Insurance Companies, Enterprises, SMEs, and promotional calls with the prefix 140 to those who have not enabled do-not-disturb (DND) service.

[indianexpres]

[reuters]

The Petroleum and Natural Gas Senior Staff Association of Nigeria has offered reasons why independent marketers are unable to purchase petrol directly from Dangote Refinery.

The President of the association, Festas Osifo, offered the explanation when he spoke with newsmen in Lagos on Tuesday. 

Osifo said the major reason is the pricing disparity between the costs at which the Nigerian National Petroleum Company Limited buys petrol and the price it sells to independent marketers.

He said while the NNPC may purchase petrol at N950, it sells it to independent marketers for around N700.

He said the NNPCL then manages the significant shortfall.

Osifo said if the major marketers buy directly from Dangote at a price similar to that at which NNPCL purchases it, they will need to sell for at least N1,000 anywhere in the country.

He added that this accounted for why the marketers still buy petrol from NNPCL.

He noted that some part of Nigeria’s crude oil has been tied to loan repayments, thus limiting the available supply for local consumption.

He said the ongoing divestment by International Oil Companies poses both risks and opportunities for Nigeria, including potential reduction in foreign direct investment and production level.

Afrobeats megastar, David Adeleke popularly known as Davido is set to perform at United Nations General Assembly (UNGA) event.

UNGA is one of the six principal organs of the United Nations, serving as its main deliberative, policymaking, and representative organ with its headquarter in New York.

In a post via X on Tuesday, Davido announced he will be performing at one of the events at the UNGA tonight.

The Grammy-nominated artiste also urged his fans to anticipate his performance.

“Touch down New York City for the @UN General Assembly. My first time attending should be interesting,” he wrote.

“Also performing tonight at one of the events ! Catch me if u can!”

Davido’s announcement comes a few days after DJ Cuppy, the Nigerian disc jockey, made history at the UNGA. She hosted an opening session at the event.

During her session, Cuppy emphasized the importance of engaging young people worldwide in meaningful conversations.

She revealed her passion for quality education — the Sustainable Development Goals (SDG 4).

The disc jockey also highlighted her foundation’s efforts in funding education for underprivileged Africans.

After her keynote session, Cuppy also gave a musical performance at the event.

[PM News]

The Academic Staff Union of Universities (ASUU) has issued a 14-day ultimatum to the federal government to meet its pending demands as contained in the agreements between both parties or risk facing a fresh strike action.

ASUU, in a statement on Wednesday by its president, Professor Emmanuel Osodoke, accused the federal government of not showing commitment to executing the agreements with the union, some of which date as far back as 2009.

It urged the government to pay the withheld salaries due to the 2022 strike action and stop exhibiting delay tactics.

The University academic union is also seeking the conclusion of the renegotiation of the 2009 FGN/ASUU Agreement based on the Nimi Briggs Committee’s Draft Agreement of 2021.

ASUU, in its statement on Wednesday, said if its demands are not satisfactorily met in two weeks time, its members will embark on strike, which would cripple academic activities in the nation’s public universities.

“In view of the foregoing, ASUU resolves to give the Nigerian Government another 14 days, in addition to the earlier 21 days, beginning from Monday, September 23, 2024, during which all the lingering issues must have been concretely addressed to the satisfaction of the membership of the union.

“The union should not be held responsible for any industrial disharmony that arises from the government’s failure to seize the new opportunity offered by ASUU to nip the looming crisis in the bud,” ASUU said

ASUU is also demanding the release of unpaid salaries for staff on sabbatical, part-time, and adjunct appointments affected by the Integrated Payroll and Personnel Information System (IPPIS), and the payment of outstanding third-party deductions such as check-off dues and cooperative contributions.

Its demands also include funding for the revitalization of public universities, partly captured in the 2023 Federal Government Budget, and the payment of Earned Academic Allowances partly captured in the 2023 Federal Government Budget.

Other grievances of ASUU are the proliferation of universities by Federal and State Governments, the implementation of the reports of visitation panels to universities, the reversal of the illegal dissolution of Governing Councils, and the adoption of the University Transparency and Accountability Solution as a replacement for IPPIS.

[NaijaNews]

In Nigeria, politics has unfortunately become synonymous with power grabs, grandstanding, and empty promises. Our politicians, both elected and appointed, seem more interested in wielding the title of “leader” than embodying the essence of true leadership. While the facade of leadership is worn as a badge of honor, the practical results of governance are often lacking, leaving millions of Nigerians disillusioned. This begs the question: “when will Nigerian politicians stop acting like leaders and start governing as true ones?”

Throughout Nigeria, from the bustling streets of Lagos to the quiet villages that are located across the 774 local governments, political leaders abound, by title. We have governors, senators, members of the House of Representatives, and local government chairmen. On the surface, the architecture of leadership appears formidable, but scratch deeper, and the substance is missing. Leadership is not about the title one holds or the office they occupy. It is about the capacity to make tough decisions, the will to deliver results, and the commitment to prioritizing the needs of the people over personal gain. Unfortunately, many Nigerian politicians fall woefully short in these areas.

A leader is defined by their actions, not by their speeches or the size of their motorcade. Yet, we have witnessed countless politicians who deliver eloquent speeches, promising the moon, only to retreat into the comfort of luxury living once elected. The gap between their words and their deeds is glaring. They come across as leaders in their rhetoric, but in practice, they are missing in action where it matters most, delivering good governance.

One of the core problems with Nigerian politicians is the perversion of leadership from service to self-interest. Instead of focusing on solving the critical issues plaguing Nigeria, such as poverty, unemployment, insecurity, and corruption, many politicians are obsessed with consolidating power and amassing wealth. The offices they occupy are seen as stepping stones to personal enrichment, and the welfare of the people takes a backseat.

True leadership is about service. It requires empathy, sacrifice, and a deep understanding of the people you are elected to serve. Unfortunately, many of our politicians view public office as an opportunity to enrich themselves, their families, and their cronies. This is why political offices in Nigeria are so fiercely contested. When you observe the lengths to which politicians go to secure a position, it becomes clear that the motivation is not to serve the public but to protect their own interests. Leadership in Nigeria has become a means to an end rather than an opportunity to improve the lives of citizens.

Nigerians are no strangers to empty promises. During every election cycle, politicians inundate the public with pledges to fix roads, build hospitals, provide jobs, and eradicate poverty. They plaster their smiling faces on campaign posters, attend town hall meetings, and go on television to assure voters of the bright future ahead. But once the elections are over, those promises vanish into thin air.

Take, for example, the much-heralded promises of infrastructure development. Many Nigerian cities are littered with unfinished or poorly executed projects, roads that lead to nowhere, abandoned hospital buildings, and non-functional schools. Politicians cut ribbons and pose for photos at ground-breaking ceremonies, but when it comes to completing these projects, they are nowhere to be found. Leadership is not about starting things; it is about seeing them through to completion.

Another glaring example is the issue of job creation. Politicians regularly boast about creating millions of jobs, yet the unemployment rate continues to soar. Youth unemployment, in particular, has reached alarming levels, leaving millions of young Nigerians frustrated and hopeless. A true leader would prioritize the creation of sustainable economic opportunities, but many politicians are more interested in short-term solutions that serve their political expediency rather than long-term economic growth.

Perhaps the most disturbing aspect of Nigeria’s political class is their detachment from the realities facing the average Nigerian. While many Nigerians struggle to make ends meet in the face of rising inflation, insecurity, and a weak economy, our politicians live in a parallel universe of opulence and privilege. They are often chauffeured around in luxury cars, live in mansions, and receive salaries and allowances that are disproportionate to the economic realities of the country.

This disconnect breeds resentment. When politicians flaunt their wealth and live extravagantly, they alienate themselves from the people they claim to serve. How can a leader who has no idea what it means to queue for fuel, or experience power outages, or struggle to afford basic food items, truly understand the challenges faced by ordinary Nigerians? True leadership demands that politicians get in touch with the struggles of the people and work relentlessly to alleviate them. It is not enough to speak about the challenges of the masses from a distance; politicians must feel their pain and reflect it in their policies and actions.

There is a saying that “actions speak louder than words,” and nowhere is this truer than in leadership. Nigerian politicians need to lead by example. It is not enough to simply make promises; they must be willing to make the tough choices that result in tangible progress. This may involve cutting down on government waste, ensuring accountability in public office, and instituting policies that prioritize the welfare of the people over personal gain.

Furthermore, true leadership requires humility. Politicians must be willing to admit when they are wrong and make necessary adjustments to their policies. They must be open to feedback from the people and surround themselves with competent advisers who will help them make informed decisions.

If Nigerian politicians are serious about being true leaders, several things need to change. First, there needs to be a fundamental shift in the mindset of politicians. Leadership is not a title; it is a responsibility. Politicians must begin to see their role as servants of the people, not overlords. They must prioritize the needs of the public over their personal ambitions.

Second, transparency and accountability must be at the forefront of governance. Politicians should be held accountable for their actions and inactions. It is time to move away from the culture of impunity where politicians can make promises with no intention of fulfilling them.

In fact, there must be a genuine commitment to improving the lives of ordinary Nigerians. Politicians should focus on creating sustainable solutions to the country’s problems rather than temporary fixes that serve only to boost their popularity.

Finally, Nigerian politicians need to stop coming across as leaders and start practicing true leadership. The time for empty rhetoric and symbolic gestures is over. Nigerians are tired of the charade. What the country needs now are leaders who are willing to roll up their sleeves, make the tough decisions, and deliver real, tangible results that improve the lives of the people. Leadership is not about holding a position; it is about action, integrity, and service. It is time for Nigerian politicians to rise to the occasion and be the leaders they claim to be.

Disasters could be man-made like civil unrest, wars, pollution or natural like floods, erosions, landslides and earthquakes. The recent flood disaster in Maiduguri ravished the city and caused monumental damage. Many lives and property were lost, with many people are yet to find their loved ones. There are also fears of a major disease outbreak. The flood highlights the need for Nigeria to shift to a more proactive emergency management system which involves paying more attention to the mitigation, and preparedness. Effective emergency management goes beyond just announcing the possibility of a disaster occurring and distributing reliefs when they occur.

Mitigation aims to reduce the likelihood or impact of disasters . It involves measures such as having early warning system in place restricting development in high-risk areas, promoting proper waste disposal to prevent blockages in drainage systems, ensuring people don’t build on water ways, fortifying infrastructure like dams, reinforcing critical structures, preventing deforestation to curb erosion, gathering intelligence to identify and address underlying grievances that may lead to civil conflicts. Preparedness involves having comprehensive response plans, training personnel, and having all the resources in place to respond to emergencies. It requires agility. For example, since there were warning signals about the flood in Maiduguri, plan should have been in place to evacuate people living in high risk areas to safe camps.

Better funding, coordination, collaboration and information exchange among key stakeholders, including the National Emergency Management Agency, State Emergency Management Agencies, local authorities, Fire Services, NIMET, and Security Agencies, are essential for a more proactive effective management system in Nigeria. It is imperative to involve Professional Project Managers to ensure objectives are met.

There is need for robust data gathering and analysis to enable effective identification of vulnerabilities. risk assessment and streamlining mitigation and response strategies. Nigeria should embrace the use of more technology in emergency management as the use of advanced tools like Geographical Information Systems, remote sensing, predictive modelling improve hazard monitoring and early warning capabilities.

The flood in Maiduguri has highlighted the need to rejig Nigeria's emergency management system to be more proactive and agile in order to significantly reduce the risk of occurrence and impact of disasters. It involves a holistic approach, by ensuring proper town planning, carrying out integrity test on critical infrastructures like dams and fortifying when necessary, having early warning signal and evacuation plans, etc. Enough of the avoidable loss of lives and properties in Nigeria.