National Assembly Passes CBN Act Bill

July 31, 2024

The National Assembly on Wednesday passed an amendment to the Central Bank of Nigeria (CBN) Act, which increased the apex bank’s threshold of Ways and Means Advances to the Federal Government from five percent to a maximum of 10 per cent.

Leading the debate on the Central Bank of Nigeria Act (Amendment) Bill, 2024, the Senate Majority Leader, Senator Opeyemi Bamidele said: “Permit me to lead the debate on this Bill which seeks to amend the Central Bank of Nigeria (CBN) Act to increase the total CBN advances to Federal Government.

“The Bill was read for the first time in this Chamber on Wednesday, July, 31.

“The very essence of this Bill is to enable the Federal Government to meet its immediate and future obligation due to the government’s increasing need for funds to finance the budget deficits and other expenses.

“The Central Bank of Nigeria’s Advances to the Federal Government are essentially loans that the Central Bank of Nigeria provides to the government to help it meet its financial obligations.

“These Advances are typically short-term and are expected to be repaid by the government.

“The passage and enactment of this amendment into law will: Provide immediate funds to address budget shortfalls and finance essential government expenditure;

“Help maintain financial market stability by preventing government default on its obligation;

“Inject money into the economy, stimulating economic activity and potentially creating jobs;

“Enables the government to support critical sectors like agriculture, health care, and infrastructural development; and lowers the government borrowing cost by providing cheaper funds than the traditional borrowing method.

“This amendment is very consequential and it needs the support of us all. This is to enable the Federal Government to embark on very important projects that will inflate and rejig the economy especially the Renewed Hope Infrastructural Development across the country.”

Senators Adetokunbo Abiru, Babangida Hussaini, Aliyu Wadada, Adams Oshiomhole, Ibrahim Dankwambo, and Solomon Adeola supported the bill.

After the debate, the Senate approved that the bill be read for a third time and passed when its clauses were put to voice vote by Senate President, Godswill Akpabio.

In a similar fashion, the House of Representatives also passed the CBN Act Bill for first, second, and third reading during Wednesday’s emergency plenary.