In the midst of protests, the House of Representatives has given its approval to amend the Central Bank of Nigeria Act, increasing the ceiling of Ways and Means Advances from 5 to 15 percent.

This decision came during an emergency sitting, aligning with the Senate’s earlier emergency plenary to consider and approve several economic bills.

The National Assembly took this step in response to criticisms of the Federal Government’s excessive borrowing beyond the 5 percent threshold set by the CBN.

According to Section 38 of the CBN Act, the apex bank can provide temporary advances to the government in case of a budget revenue shortfall.

Lawmakers, lawyers, and economists argue that the ongoing lending to the government by the CBN, without repaying previous advances, is in violation of Section 38(2) and (3a) of the Act.

They further state that the proposed securitization plan would breach Section 38(3b) of the law.

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The World Bank had previously cautioned against financing deficits by borrowing from the CBN through Ways and Means Advances, highlighting the adverse effects on fiscal pressures and domestic prices.

Even the CBN itself acknowledged on its website that the government’s borrowing from them could negatively impact monetary policy, leading to macroeconomic instability.

Despite these concerns, the Senate approved an increase in the Ways and Means Advances accessible to the Federal Government.

Lawmakers argued that it would help meet immediate and future obligations as approved by the National Assembly.

During the House session, some members criticized the process and protested the lack of access to the amendment bill, which they were summoned to discuss.

Despite objections raised by members like Sada Soli, the bill was passed, and the Deputy Speaker, Ahmed Wase, urged colleagues to allow it to proceed.