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BIG STORY

FG Owes CBN N15.51tn, Borrows N14.86tn Under Buhari

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The Federal Government’s total borrowing from the Central Bank of Nigeria through Ways and Means Advances has ballooned to N15.51tn, rising by 2,286 percent in six years, data collated from the CBN have shown.

The N15.51tn owed by the Federal Government to the central bank is not part of the country’s total public debt stock, which stood at N33.11tn as of March 2021, according to the Debt Management Office.

The public debt stock comprises the debts of the Federal Government of Nigeria, the 36 state governments, and the Federal Capital Territory.

Ways and Means Advances is a loan facility used by the central bank to finance the government in periods of temporary budget shortfalls subject to limits imposed by law.

According to Section 38 of the CBN Act, 2007, the bank may grant temporary advances to the Federal Government in respect of temporary deficiency of budget revenue at such rate of interest as the bank may determine.

The Act says, “The total amount of such advances outstanding shall not at any time exceed five percent of the previous year’s actual revenue of the Federal Government.

“All advances shall be repaid as soon as possible and shall, in any event, be repayable by the end of the Federal Government financial year in which they are granted and if such advances remain unpaid at the end of the year, the power of the bank to grant such further advances in any subsequent year shall not be exercisable, unless the outstanding advances have been repaid.”

In the first six months of this year, the Federal Government borrowed N2.4tn from the CBN, more than half of what it got in the whole of last year.

The N2.4tn is also much higher than five percent of the Federal Government’s retained revenue of N3.9tn in the previous year.

As of June 2015, a month after the President, Major General Muhammadu Buhari (retd.) came into power, the total government borrowing from the apex bank stood at N648.26bn.

It jumped from N856.33bn in December 2015 to N2.23tn in December 2016, the CBN data show.

The total borrowing from the bank grew by N1.08tn in 2017 to N3.31tn. It rose further by N2.1tn in 2018 to N5.41tn.

The Federal Government’s borrowing from the CBN surged by 61.18 percent (N3.31tn) to N8.72tn at the end of 2019.

Last year, the government turned to the apex bank for a record N4.9tn to plug its fiscal financing gap, bringing its total borrowing to N13.11tn as of December 2020.

A global credit rating agency, Fitch Ratings, had in January raised concerns over the Federal Government’s repeated recourse to its ways and means facility with the central bank.

According to the agency, the use of central bank financing in Nigeria, which predates the COVID-19 pandemic shock, could raise risks to macro-stability in the context of weak institutional safeguards that preserve the credibility of policymaking and the ability of the central bank to control inflation.

“The CBN’s guidelines limit the amount available to the government under its WMF to five percent of the previous year’s fiscal revenues. However, the FGN’s new borrowing from the CBN has repeatedly exceeded that limit in recent years, and reached around 80 percent of the FGN’s 2019 revenues in 2020,” it said.

In February, the International Monetary Fund said Nigeria’s monetary policy operational framework should be reformed in the medium term, adding that the central bank financing of budget deficit should be phased out in order to reduce inflation.

“The increasing reliance on CBN overdrafts has come with negative consequences. The financing is costly for the Federal Government at interest rates of MPR plus 300 basis points, and for the CBN, with sterilization done through the issuance of OMO bills,” it said.

The IMF added that the complete removal of central bank financing of fiscal deficits would require higher domestic revenue mobilization.

The Washington-based fund had on April 28, 2020, approved Nigeria’s request for emergency financial assistance of $3.4bn to support the country’s efforts in addressing the severe economic impact of the COVID-19 shock and the sharp fall in oil prices.

In a letter of intent to the IMF, the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, and the CBN Governor, Mr Godwin Emefiele, said the recourse to central bank financing would be eliminated by 2025.

They added that the existing stock of overdrafts held at the CBN would also be securitized.

BIG STORY

Akpabio Appeals Judgement On Natasha Akpoti’s Suspension

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Senate President Godswill Akpabio has submitted an appeal in an effort to reverse a federal high court ruling that instructed the senate to lift the suspension placed on Natasha Akpoti-Uduaghan, the senator representing Kogi Central.

The appeal, dated July 14, 2025, was lodged at the Abuja division of the court of appeal.

Akpabio is contesting the July 4 decision issued by Binta Nyako, which labelled Akpoti-Uduaghan’s six-month suspension as overreaching and a violation of her constituents’ rights to representation.

Although the court recognized the senate’s constitutional power to discipline its members, Nyako determined that the duration and severity of Akpoti-Uduaghan’s suspension were excessive. Additionally, the court imposed a ₦5 million fine on the senator for contempt, pointing to a satirical Facebook post made during the trial that allegedly violated an existing restraining order.

In reaction, Akpoti-Uduaghan has lodged her own appeal, disputing the contempt ruling on the basis of jurisdiction. She claimed the court lacked authority to rule on a contempt matter involving actions that took place ex facie curiae — outside the courtroom.

Akpabio’s legal representatives also submitted a cross-appeal, questioning the federal high court’s jurisdiction. They argued that the issue pertains to internal legislative matters, which they believe fall outside judicial oversight as stated in Section 251 of the 1999 Constitution.

In his appeal containing 11 grounds, Akpabio criticised the lower court for dismissing his initial objection and issuing decisions that he believes encroach upon the legislative independence granted by the Legislative Houses (Powers and Privileges) Act.

He argued that processes such as suspensions, statements made during plenary, and senate decisions should not be subject to court review. The appeal further stated that Akpoti-Uduaghan’s case was filed prematurely because she had not yet pursued resolution through the internal processes of the senate, especially through the committee on ethics, privileges, and public petitions, as outlined in the Senate Standing Orders (2023, as amended).

Akpabio also alleged that the trial judge denied him a fair hearing by introducing and deciding on matters such as the alleged excessiveness of the suspension without input from either party. He viewed this as a violation of the court’s impartial role.

Additionally, the appeal criticised the merging of interim reliefs with the main claims, which Akpabio’s legal team argued was a procedural error. They also maintained that the case should have been dismissed for not complying with Section 21 of the Legislative Houses Act, which requires a three-month notice to the clerk of the national assembly before initiating legal proceedings.

Akpabio is requesting that the appeal court accept his case, nullify the federal high court’s decision, and uphold the senate’s disciplinary action against Akpoti-Uduaghan.

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BIG STORY

Natasha Akpoti Fires Back At Akpabio Over Reinstatement Challenge

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Senator Natasha Akpoti-Uduaghan, who represents Kogi Central, has dismissed Senate President Godswill Akpabio’s appeal challenging the Federal High Court decision that reinstated her to the Senate.

Akpabio, through his lawyers, approached the Court of Appeal in Abuja to contest the July 4 verdict by Justice Binta Nyako, which overturned Akpoti-Uduaghan’s six-month suspension and labelled it as “excessive” and lacking legal justification.

The appeal, dated July 14 and registered as CA/A//2025, stemmed from suit FHC/ABJ/CS/384/2025, which Akpoti-Uduaghan filed to contest her suspension.

In his appeal, Akpabio urged the appellate court to nullify the ruling, arguing across 11 grounds that the trial court lacked the authority to interfere in what he described as internal National Assembly matters, which he claimed are not subject to judicial review based on Section 251 of the 1999 Constitution.

He also criticised the court for dismissing his preliminary objection and issuing directives that impacted parliamentary procedures. He insisted that decisions made during plenary, such as suspensions and resolutions, are protected by the Legislative Houses (Powers and Privileges) Act and should not be legally challenged.

According to Akpabio, Akpoti-Uduaghan filed her lawsuit prematurely without first exploring the Senate’s internal grievance process through the Committee on Ethics, Privileges, and Public Petitions, as required by the 2023 (amended) Senate Standing Orders.

He further claimed the trial court denied him a fair hearing by raising new issues — such as whether the suspension was excessive — without input from both parties and then ordering her reinstatement based on that.

Attempts to get an official reaction from Akpoti-Uduaghan were unsuccessful, as she did not respond to phone calls or messages.

When approached at the “Double Minority” documentary screening organised by Daria Media and the MacArthur Foundation, the senator declined to comment on whether she would return to her legislative duties.

When asked about Akpabio’s appeal, she reacted sharply and said, “Did you also ask him to tell you why he appealed it?” before leaving the venue.

It is worth recalling that on February 20, 2025, a dispute erupted between Natasha and Akpabio concerning seating arrangements in the Senate.

Following the incident, she accused him of sexual harassment, including offering favors in exchange for her cooperation on legislative matters.

The Senate’s Ethics Committee rejected her complaint on procedural grounds and suspended her for six months for “unruly behaviour,” denying her access to her office, salary, and security.

On July 4, 2025, Justice Nyako at the Federal High Court in Abuja overturned her six-month suspension, deeming it excessive, and directed the Senate to bring her back.

The court also imposed a N5 million fine on Akpoti-Uduaghan for contempt related to a social media post but emphasized that her constituents had been deprived of representation during her suspension.

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BIG STORY

Ogun State Workers Begin Strike Over N82bn Pension Deductions

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The organised labour groups in Ogun State — including the Nigeria Labour Congress, Trade Union Congress, and Joint Negotiating Council — on Monday instructed all state employees to embark on an indefinite strike.

This move follows the state’s failure to remit N82 billion in contributory pension deductions over a span of 14 years.

This directive was disclosed in a statement signed by leaders of the NLC, TUC, and JNC, and shared with The PUNCH on Monday.

The decision for industrial action was reportedly made during a statewide congress held the same day, where workers voted to indefinitely stop work in protest of the non-functional Ogun State Pension Reform Law 2008 and its 2013 amendment.

The 2013 amendment to the Pension Law established the Contributory Pension Scheme, which mandates that both employers and employees contribute a fixed monthly sum of 7.5 percent of the worker’s basic salary into a fund managed by licensed pension fund administrators.

According to the labour unions, in the 17 years since the law was enacted, there has been a consistent failure to implement it properly, often violating the provisions of the law.

The statement noted that “Accessible records on it established the incontrovertible fact that it has rather been a drain of resources for the workers, and curiously, a wage lowering tactic for successive governments of the state.”

It added that “Only 34 months (that is, three years less than two months) of the expected 204 months (17 years) of the deductions from both sides, i.e. the state/local governments were remitted to the PFAs.”

It also stated, “In the last 14 years, and still counting, monthly deductions only from workers’ salaries have been diligently consistent without remittance to their PFAs.”

“The statue-prescribed investments of the funds, the interests it could have yielded, amongst other associated benefits are all in limbo.”

“It simply translated to the apparent shortchanging of the entirety of active and dedicated workers of the state over the years.”

The unions mentioned the Adekunle Hassan Pension Reform Committee that was formed in 2022, stating that its report and recommendations were never made public.

They noted that no definitive steps had been taken to resolve the situation. Despite sending numerous letters to the authorities, the state government never responded.

Suffice that workers unanimously demanded for outright cancellation of the shortchanging scheme which, according to its amended version, comes into full effect on July 1, 2025.

The statement continued, “In clear terms, the indefinite suspension of services across the state and local governments takes full effect from midnight, Tuesday 15th July 2025.”

Earlier, about two weeks ago, the labour unions urged the state government to either delay the implementation of the CPS, initially scheduled for July 1, or revert to the old pension system.

They pointed out that the pension law, signed by former Governor Gbenga Daniel in 2008, was flawed from inception, as the administration failed to remit 25 months’ worth of deductions before exiting office in May 2011.

They added that Daniel’s successor, Senator Ibikunle Amosun, amended the law in 2013 with a plan to fully implement the CPS in July 2025, but only remitted nine months’ deductions throughout his eight-year tenure.

According to the labour leaders, Governor Dapo Abiodun, in his six years in office, has not remitted any contributions from workers into the scheme.

They expressed frustration that despite numerous letters and communications, the government has remained silent on the issue.

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