THE Office of the Governor of the Central Bank of Nigeria (CBN) is usually expected to be quiet and devoid of drama, noise however came in with Prof. Charles Soludo; the incumbent, Mallam Lamido Sanusi has not helped matters, the CBN has turned itself into a production company churning out series of ever unending drama.
The latest being the reluctance of the apex bank to explain how it is managing the public fund in its possession. The bank has so far refused to submit details of its 2012 budget for legislative scrutiny and approval. Rather than the full budget, CBN submitted a medium-term budget forecast for 2012-2015.
National Daily investigation showed that Appropriation Committees in both chambers are asking for the full budget which would include details of past and present expenditure profiles.
The lawmakers are pointing at the Nigeria National Petroleum Corporation (NNPC), which for the first time in its 35 years existence submitted its full budget for scrutiny.
“We didn't ask for a budget forecast from the CBN. We will insist on a budget with details because the NNPC, which hitherto wasn't bringing its budget to the National Assembly has already complied. That of the CBN cannot be different,” he said.
In the medium-term forecast, CBN said it spent N221.091 billion for 2011 with a projection of N242.053 billion for 2012.
Shadowy details

Details from the 2012-2015 income budget forecast submitted to the National Assembly indicate that the nation's apex bank hopes to spend N242.053 billion for this year while N211.906 billion would be spent on recurrent expenditure.

In a further breakdown of the 2012 forecast, CBN would earn N25.512 billion interest on foreign investments and another N24.9 billion interest on domestic investments.

Another N49.548 is being forecast as interest that would be earned on domestic loans and advances, while the sum of NN140.078 billion is simply tagged “other income.”

In the recurrent expenditure forecast, CBN staff of 6, 478 would earn N59.234 billion as salaries and wages plus allowances. “The expenditure estimates were based on the base year 2011 and anticipated review of emoluments in 2014.

“By 2014, staff salaries and wages plus allowances would climb to NN96.965 billion capping at N98.765 billion in 2015” while N87.847 is being budgeted for currency management and monetary policy operations, N24.816 billion is for capacity building and development expenses.
In the document under review, N2 billion is earmarked for “provision. In the explanatory note submitted to the National Assembly, provision is explained as “yearly estimates to cater for unforeseen contingencies which may arise at budget implementation.”

Senate refused to entertain an amendment bill of the CBN Act by the Chairman of the Senate Rules and Business Committee, Senator Ita Enang. In the proposed amendment, Enang posited that the CBN has refused to comply with the Fiscal Responsibility Act of 2007, which mandates the apex bank to seek approval for its budget from the National Assembly every financial year.

Meanwhile, the CBN has blamed crisis in the Eurozone, inflation, and some financial insolvency as mitigating factors against its operations in 2011.
“The financial crisis in the international arena gives a challenge for predicting certain parametres for the budget forecast, especially on the income budget.

“These were characterized by the sovereign debt crisis in the Eurozone, the US deficit problem, inflation in emerging markets and financial solvency concerns.

The bank's 2012-2015 medium-term budget framework is premised on the anticipated developments in the local and international economies and based on the expected level of activities, the direction of policies, practices and objectives of the bank.

Call for probe
The Organised labour recently called on the National Assembly to immediately initiate a probe into the activities of the Central Bank of Nigeria (CBN). Labour demanded the need to unravel the source of free funds available to it and the way in which the apex bank has managed its various assignments.

A case in point was the recent apex bank's donations of N125 million victims of Boko Haram bomb attacks in Kano and Niger states. The leadership of Trade Union Congress of Nigeria (TUC) frowned at the action of the Sanusi, describing it as a misplacement and abuse of statutory prerogatives.
President General of the Congress, Peter Esele, stressed the need for the CBN governor to concentrate efforts in initiating policies and programmes that would drive the nation's economy and bring about stability to the Naira rather than embarking on charitable projects.

Esele, who maintained that the apex bank is not a political party or a charity organisation, urged the apex regulatory body to immediately purge itself of this action by publicly acknowledging it as a mistake.

He also enjoined the bank to take a further step to ensure that neither the incumbent officials nor any other incoming official is in a position to embark on such divisive action now or in the future.

He called on the Federal Government to put in place measures to remove whatsoever principles, rules and traditions that made it possible for the Central Bank to donate tax-payers money to any cause.

He added that any extant law that empowers the CBN to so should be amended by the National Assembly, in order to avoid any form of abuse by government agencies and institutions.

“The CBN is not supposed to be involved in conducts that would distract it from its statutory roles to the economy and the Nigerian people. Actions that could portray it in anyway, as being sectional commonsense dictates, should be avoided.

“We demand that the National Assembly embarks on an immediate probe of the activities of the CBN to unravel the source of these free funds that have suddenly become available to it and to throw more light on the way it has managed its various assignments,” Esele said.

Missing N1.26trillion
Also in the offing is a lawsuit filed by two civil society groups, Socio-Economic Rights and Accountability Project (SERAP) and Women Advocates Research and Documentation Center (WARDC) against Sanusi over “alleged failure to release information and documents on the authorization by the CBN of over N1.26 trillion as subsidy for 2011.”

The suit number FHC/IK/CS/23//2012 filed at the Federal High Court Ikeja followed a Freedom of Information request by SERAP to Mr Sanusi dated 15 January 2012; also joined as party to the suit is the Minister of Justice and Attorney General of the Federation Mr Muhammed Adoke.
The motion exparte with suit number was brought pursuant to section 20 of the Freedom of Information Act, and Order 34 of the Federal High Court (Civil Procedure) Rules, 2009, and signed by the organization's Staff Attorney Chinyere Nwafor.

The plaintiff is arguing that under the FOI Act, it has the right to request for or gain access to information which is in the custody or possession of any public official, agency or institution.

The information being sought relates to the spending on fuel 'subsidy' in 2011 and in particular the authorization of the sum of N1.26 trillion paid by the Central Bank of Nigeria.

The groups said that, “Since the 1st Defendant has failed to provide the information requested by the Plaintiffs, within the time limit stipulated by the FOI Act, it is therefore submitted that he has, by that very fact, refused to give the Plaintiffs access to the information requested for. Furthermore, the power or discretion to refuse to give access to information requested for cannot be exercised in vacuo. Such a power or discretion must be provided for by the FOI Act itself.”

The organization is also seeking the following reliefs: A. A DECLARATION that the issuance and release of the sum of N1.26 trillion above the initial sum of N250 billion allocated for fuel subsidy for 2011 without authorization by an Act of the National Assembly to wit; a Supplementary Appropriation Act, is a breach of section 80(2), (3) of the Constitution of the Federal Republic of Nigeria and as such is unlawful and unconstitutional.

B. A DECLARATION that by virtue of the provisions of Section 4 (a) of the Freedom of Information Act 2011, the 1st Defendant/Respondent is under a binding legal obligation to provide the Plaintiffs/Applicants with up to date information on government/public spending relating to fuel 'subsidy' in 2011, including: (a) The basis on which the issuance and release of the sum of N1.26 trillion on fuel 'subsidy' was made.

(b) Detailed information and justifications for the issuance and release of money for fuel 'subsidy' which rose from N250 billion for 2011 to over N1.3 trillion by the end of October 2011, N1.5 trillion by December 2011 and subsequently N1.26 trillion without supplementary appropriation authorising the expenditure.

C. AN ORDER OF MANDAMUS directing and or compelling the 1st Defendant/Respondent to provide the Plaintiffs/Applicants with up to date information on government/public spending relating to fuel 'subsidy' in 2011, including: (a) The basis and expectations on which the issuance of the sum of N1.26 trillion on fuel 'subsidy' was made.

(b) Detailed information and justifications for the issuance and release of money for fuel 'subsidy' which rose from N250 billion for 2011 to over N1.3 trillion by the end of October 2011, N1.5 trillion by December 2011 and subsequently N1.26 trillion without supplementary appropriation authorising the expenditure.

No date has been fixed for the hearing of the application.



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