Senate Launches Probe into N30tn CBN Loans Under Buhari Administration

The Nigerian Senate has announced a comprehensive investigation into the utilization of the N30 trillion Central Bank of Nigeria (CBN) loans during the tenure of former President Muhammadu Buhari. This move comes as the nation grapples with escalating food crises, rising inflation, currency depreciation, and heightened insecurity.

The Senate, highlighting the significant impact of the overdraft from the CBN under Godwin Emefiele, has raised concerns about the lack of transparency in disclosing details of the N30 trillion Ways and Means overdraft, a facility used to address budget shortfalls.

A newly established ad-hoc committee is set to scrutinize the allocation of the N30 trillion overdraft, focusing on the Anchor Borrowers Scheme’s N10 trillion expenditure, the $2.4 billion forex transaction out of a $7 billion obligation, and other intervention programs.

Critics, including members of President Bola Tinubu’s economic team, attribute the current economic challenges to the alleged mismanagement of the Buhari regime, while defenders argue that ongoing reforms aim to rectify past mistakes.

This development follows a series of controversial financial decisions, including Buhari’s request to convert the N22.7 trillion Ways and Means loan into a 40-year bond, which was approved by the House of Representatives but faced opposition in the Senate. The Senate’s current probe seeks to unravel the intricacies of the financial maneuvers carried out during the Buhari administration.

In response, the Senate President, Godswill Akpabio, emphasized the need for a thorough investigation into the N22.7 trillion Ways and Means approved in May 2023, which later increased to N30 trillion, including the passage of an additional N7.2 trillion accrued interest in December 2023.

The joint committee’s executive summary points to major fiscal and monetary policy actions contributing to the economic challenges, with direct lending to the federal government by the CBN, fuel subsidy issues, and interventions lacking clear targets.

As the Senate probe panel gears up to summon key members of the previous administration, the People’s Democratic Party (PDP) welcomes the investigation, urging the National Assembly to scrutinize Buhari’s actions during his eight-year tenure. The Labour Party expresses skepticism about the Senate’s commitment to a thorough investigation, citing perceived alignment with the current government’s interests.

Efforts to obtain comments from former Minister of Information and Culture, Lai Mohammed, and Emefiele’s counsel, Matthew Bukka, were unsuccessful at the time of reporting.