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Emefiele: Fresh trouble for CBN gov over violation of CBN Act 2007

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3 years ago

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Emefiele is in fresh trouble as Rep has called for his removal and prosecution over the violation Of the CBN Act 2007.

Newsonline reports that Hon. Sergius Ose Ogun has called for the removal and prosecution of Mr. Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), for allegedly violating the provisions of the CBN Act 2007.

Mr Sergius made the call on Wednesday in a motion to the House of Representatives during Wednesday’s plenary.

According to him, the total borrowings of the Federal Government of Nigeria from the CBN in the past six years have been in flagrant breach of Section 38 of the CBN Act, 2007;
Section 38 of the CBN act states that;
  • (1) “Notwithstanding the provision of  section 34(d) of this act, the bank may grant temporary advances to the federal government in respect of temporary deficiency of budget revenue as such rate of interest as the bank may determine.”
  • (2) “The total amount of such advances outstanding shall not at any time exceed five percent of the previous year’s actual revenue.”

What Rep. Ogun is saying

Rep Ogun said he is concerned that from January to June this year, this administration has borrowed the sum of  N2.4 trillion from the CBN which surpasses 5% of revenue made in 2021.

He said “Worried that within the first six months of 2022, the Federal Government has borrowed a total of N2.4 trillion from the Central Bank of Nigeria which is far above five percent of the Federal Government’s revenue for 2021, which stood at N3.9 trillion.

 

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