The Senate has assured the public that its investigation into the N30 trillion Ways and Means facility, spent by the federal government between 2015 and 2023, is progressing well and is not stuck, as recently suggested by some online reports. The investigation, which is being carried out by the Senate’s Ad-hoc Committee, has not lost momentum, according to its chairman, Senator Isah Jibrin.
In a statement released on Monday in Abuja, Senator Jibrin, who represents Kogi East under the All Progressives Congress (APC) and also chairs the Senate Committee on Customs and Excise Duties, addressed a claim made by an online news platform that the investigation had reached a standstill. He strongly refuted this claim, emphasizing that the investigation is continuing as planned.
The chairman attached a letter to his statement, showing that the committee is actively pursuing the required information from relevant government offices. The letter was a reminder to the office of the Accountant General of the Federation, requesting key documents and data necessary to conduct a thorough investigation into the use of the Ways and Means facility.
Senator Jibrin explained that while the Senate initially gave the ad-hoc committee six weeks to complete the investigation when it was set up in March, the complexity and importance of the task at hand had made it necessary to extend the timeline. The committee is determined to gather all the necessary facts, which means it requires more time than initially expected. He made it clear that the committee’s priority is to be meticulous and accurate in its work rather than rushing to meet a deadline.
“The purpose of any investigation is to uncover facts and ensure accuracy, not simply to submit a report within a set timeframe,” Senator Jibrin said. “The investigation into the N30 trillion Ways and Means facility is on track, and it is absolutely not in limbo, contrary to what has been reported online. We are still in the process of gathering information, as demonstrated by the recent letter we sent to the Accountant General’s office.”
The letter, dated June 19, 2024, and personally signed by Senator Jibrin, is titled “Request for Submission of Additional Information.” In it, the committee reminded the Accountant General’s office about a previous letter, dated May 27, 2024, requesting vital details related to the Ways and Means facility. The committee asked for a breakdown of the disbursements made under this scheme, including:
- The names of the beneficiaries.
- The amount of money disbursed and the dates of these disbursements.
- The purpose of each disbursement.
- The terms of the disbursements, if applicable.
- The repayment schedule, if applicable.
- Whether these repayments have been made on time, in accordance with the agreed schedule.
The Ways and Means facility is a mechanism through which the Central Bank of Nigeria (CBN) provides loans to the federal government to cover budget shortfalls. While this is a common way for governments to bridge financial gaps, it has raised concerns because it can have significant economic consequences. When the government borrows heavily through this method, it can lead to an increase in inflation and a devaluation of the national currency. This is because such borrowing creates more money in the economy, which can reduce the value of the naira and drive up prices.
The CBN, which manages the Ways and Means facility, is legally restricted to providing loans that do not exceed 5% of the federal government’s revenue from the previous year. However, this limit has often been breached over the years, with the government borrowing more than the law allows. This practice has sparked concerns about the long-term economic impact on the country.
In light of these concerns, the CBN Governor, Olayemi Cardoso, made an important announcement in February of this year. He stated that the CBN would no longer provide Ways and Means advances to the federal government until the existing debts under this scheme are fully repaid. This decision was seen as an effort to stabilize the economy and prevent further economic instability caused by unchecked borrowing.
The investigation into the N30 trillion spent by the federal government under the Ways and Means facility is crucial to understanding how the government has managed these loans and whether they have been used effectively. The Senate committee’s inquiry is focused on ensuring that the disbursements were made in line with the law and that the repayment terms were followed. It also aims to determine whether there was any misuse or mismanagement of the funds.
The committee’s work is also aimed at ensuring transparency and accountability in government finances. Given the scale of the borrowing involved, the committee wants to make sure that every naira disbursed under the Ways and Means facility has been properly accounted for and that taxpayers’ money has been spent wisely. The investigation could have far-reaching implications for the way the government handles its finances in the future.
Senator Jibrin, in his statement, emphasized that the committee is fully committed to completing the investigation with the utmost seriousness and dedication. While the committee has not yet completed its work, significant progress has been made, and more findings are expected in the coming weeks. He also reassured the public that the investigation is not being delayed intentionally and that any setbacks or delays are simply a result of the committee’s desire to be thorough in its work.
The committee’s actions so far, including the reminder sent to the Accountant General’s office, indicate that the investigation is actively moving forward. As Senator Jibrin pointed out, the goal is to uncover the full extent of the disbursements made under the Ways and Means facility and to ensure that they have been used for their intended purposes.
The Senate’s investigation into the N30 trillion Ways and Means facility is ongoing, and there is no truth to the claim that it is in limbo. Senator Jibrin’s statement makes it clear that the investigation is a serious and ongoing process, one that is focused on obtaining accurate and complete information. The committee is committed to ensuring that the federal government is held accountable for how it has used public funds and that the economic stability of the country is protected in the future.
